Sgli Group Term Life Insurance: What You Need To Know

Servicemembers' Group Life Insurance (SGLI) is a Department of Veterans Affairs program that provides low-cost group term life insurance to eligible service members. SGLI offers a maximum of $400,000 to $500,000 of coverage in $50,000 increments. Service members who meet the criteria are automatically enrolled in SGLI, but they can change the level of coverage or refuse it entirely. SGLI also includes Traumatic Injury Protection (TSGLI), which provides financial protection in the event of a traumatic injury.

SGLI coverage eligibility

Servicemembers' Group Life Insurance (SGLI) is a Department of Veterans Affairs program that provides low-cost group life insurance to eligible military members. If you meet the criteria, you will be automatically signed up for SGLI.

To be eligible for full-time SGLI coverage, you must meet at least one of the following requirements:

• You are an active-duty member of the Army, Navy, Air Force, Space Force, Marines, or Coast Guard.
• You are a commissioned member of the National Oceanic and Atmospheric Administration (NOAA) or the U.S. Public Health Service (USPHS).
• You are a cadet or midshipman of the U.S. military academies.
• You are a member, cadet, or midshipman of the Reserve Officers Training Corps (ROTC) engaged in authorized training and practice cruises.
• You are a member of the Ready Reserve or National Guard, assigned to a unit, and are scheduled to perform at least 12 periods of inactive training per year.
• You are a volunteer in an Individual Ready Reserve (IRR) mobilization category.

If you are in nonpay status with the Ready Reserve or National Guard, you may still be eligible for full-time SGLI coverage if you meet the following two requirements:

• You are scheduled for 12 periods of inactive training for the year.
• You are drilling for points rather than pay. (Note: You must pay your premiums directly.)

SGLI offers a maximum of $500,000 of coverage, in $50,000 increments, for a service member. You can choose your level of coverage or even refuse coverage completely. You can also choose your beneficiaries (the people who will receive the money from your life insurance policy if you die) and change them as needed.

To make changes to your SGLI coverage or beneficiaries, you must submit your changes online through the SGLI Online Enrollment System (SOES).

SGLI coverage costs

Servicemembers' Group Life Insurance (SGLI) offers low-cost term coverage to eligible service members. The current basic SGLI premium rate is 6 cents per $1,000 of insurance coverage. This means that for $500,000 worth of coverage, the monthly premium is $30. The premium includes an additional $1 per month for Traumatic Injury Protection coverage (TSGLI), bringing the total monthly premium to $31 for $500,000 worth of coverage.

The monthly premium for SGLI coverage ranges from $3 for $50,000 worth of coverage to $30 for $500,000 worth of coverage. The monthly premium is automatically deducted from the service member's base pay.

SGLI coverage is offered in $50,000 increments, with the new coverage amounts being $450,000 for $27 a month and $500,000 for $30 a month. TSGLI coverage is automatically included with SGLI coverage, adding $1 to the premium amounts.

Service members who previously declined SGLI coverage will still be automatically insured for $500,000 unless they opt out or elect a lesser coverage amount. They will also be covered by Servicemembers' Group Life Insurance Traumatic Injury Protection (TSGLI) coverage for an additional $1 per month, and their dependent children will also be automatically insured for $10,000 of coverage at no cost to the member. If the service member opts out of SGLI coverage, both the TSGLI and dependent children's coverage will also end.

Service members can reduce or decline coverage using the SGLI Online Enrollment System (SOES) or Form SGLV 8286. The earliest date to reduce or decline coverage is usually the first day of the month, and changes will take effect the following month.

SGLI coverage limits

Servicemembers' Group Life Insurance (SGLI) is a Department of Veterans Affairs program that provides low-cost group life insurance to eligible military members. SGLI coverage limits refer to the maximum amount of insurance coverage provided under the program.

Previously, the maximum coverage amount under SGLI was $400,000. However, as of March 1, 2023, the maximum coverage amount has been increased to $500,000. This increase was based on Public Law 117-209, which aimed to ensure that the coverage reflects the current cost of living. The last increase in the maximum coverage amount occurred in 2005, when it was raised from $250,000 to $400,000.

The SGLI coverage limits apply to all eligible service members, including those in the Army, Navy, Air Force, Space Force, Marines, and Coast Guard, as well as commissioned members of the National Oceanic and Atmospheric Administration (NOAA) and the U.S. Public Health Service (USPHS).

It is important to note that SGLI coverage is provided in increments of $50,000, and service members can choose their desired level of coverage. They can also choose to decline the coverage entirely if they prefer. The monthly premium for the maximum coverage amount of $500,000 is $31, which includes a $1 monthly charge for Traumatic Injury Protection (TSGLI) coverage.

In addition to the basic SGLI coverage, service members can also opt for additional coverage for their spouses and dependent children through the Family Servicemembers Group Life Insurance (FSGLI) plan. FSGLI provides up to a maximum of $100,000 of coverage for spouses and $10,000 for dependent children.

SGLI coverage changes

Servicemembers' Group Life Insurance (SGLI) is a Department of Veterans Affairs program that provides low-cost group life insurance to eligible service members. SGLI coverage changes can be made in several ways.

Firstly, eligible service members are automatically enrolled in SGLI, but they can choose to reduce their coverage or even refuse it entirely. This flexibility allows service members to customize their coverage according to their needs and preferences. The coverage amount can be adjusted in $50,000 increments, with a maximum coverage of $500,000. The VA recently increased this maximum limit from $400,000 to $500,000 in March 2023, enhancing the financial protection for service members and their loved ones.

Secondly, service members can choose their beneficiaries, or the people who will receive the insurance payout in the event of their death. They have the flexibility to change their beneficiaries as needed, ensuring that their wishes are up-to-date and providing peace of mind during their service.

Thirdly, SGLI offers the option to convert to Veterans' Group Life Insurance (VGLI) when service members leave the military. They have up to 1 year and 120 days from their discharge date to apply for VGLI, providing continuity of coverage after their military service ends.

Additionally, SGLI includes Traumatic Injury Protection (TSGLI), which provides financial assistance in the event of traumatic injuries. This coverage ranges from $25,000 to $100,000, depending on the nature of the injury, and is designed to help members and their families during the recovery process.

Finally, service members who are totally disabled at the time of their discharge or have certain specified medical conditions may be eligible for a free extension of their SGLI coverage for up to 2 years after leaving the military. This extension provides valuable financial support during a challenging time.

To make changes to SGLI coverage, service members can utilize the SGLI Online Enrollment System (SOES) available on the Defense Manpower Data Center website. This system allows them to manage their coverage amount, beneficiaries, and other related aspects of their SGLI benefits.

SGLI coverage cancellation

Servicemembers' Group Life Insurance (SGLI) is a Department of Veterans Affairs program that provides low-cost group life insurance to eligible service members. If you meet the eligibility criteria, you will be automatically enrolled in SGLI. However, you can choose to cancel your SGLI coverage at any time. Here is a step-by-step guide on how to cancel your SGLI coverage:

Understanding SGLI Coverage:

Before deciding to cancel your SGLI coverage, it is important to understand the benefits it provides. SGLI offers a maximum coverage of $500,000, which can be a valuable financial safety net for your loved ones in the event of your death. The coverage is offered in $50,000 increments, and you can choose the level of coverage that suits your needs. SGLI also includes Traumatic Injury Protection (TSGLI), which provides additional protection against losses due to traumatic injuries.

Weighing the Pros and Cons:

Before making a decision, consider the advantages and disadvantages of cancelling your SGLI coverage. On the one hand, cancelling your coverage may reduce your monthly expenses, as you will no longer be paying the SGLI premium. However, on the other hand, keep in mind that life insurance is important for financial planning and providing peace of mind for you and your family. By cancelling your SGLI coverage, you may lose the sense of security that comes with knowing your loved ones will be taken care of in the event of your death.

Cancelling SGLI Coverage:

If you decide to cancel your SGLI coverage, you can do so by submitting your changes through the SGLI Online Enrollment System (SOES). Here are the steps to access SOES:

• Go to the Defense Manpower Data Center website (milConnect).
• Select "Manage my SGLI."
• Review your coverage and beneficiary information.
• Make the necessary changes to cancel your coverage. You can reduce the coverage amount or cancel it entirely.
• Submit your changes.

Alternative Options:

If you no longer want SGLI coverage, there are alternative options available. When you leave the military, you have the option to convert your SGLI coverage to Veterans' Group Life Insurance (VGLI), which is a similar program. You can apply for VGLI within 1 year and 120 days from your date of discharge, and the coverage amount can be up to the amount you had through SGLI. Additionally, you can also convert your SGLI coverage to a permanent, individual insurance policy within 120 days of your discharge without proof of good health.

Frequently asked questions