Jane Dotson
Servicemembers’ Group Life Insurance (SGLI) is a low-cost term insurance option for eligible service members, their spouses, and dependent children. SGLI offers coverage for active-duty members of the Army, Navy, Air Force, Space Force, Marines, and Coast Guard, as well as for members of the National Guard, NOAA, and USPHS, among others. After leaving the military, individuals have the option to convert their SGLI coverage to a permanent, individual insurance policy or to continue their coverage under Veterans' Group Life Insurance (VGLI) as long as they pay the premiums.
| Characteristics | Values |
|---|---|
| Name | Servicemembers' Group Life Insurance (SGLI) |
| Type | Low-cost term coverage |
| Eligibility | Active-duty members of the Army, Navy, Air Force, Space Force, Marines, or Coast Guard; Commissioned members of NOAA or USPHS; Cadets or midshipmen of US military academies; Members, cadets, or midshipmen of ROTC; Members of the Ready Reserve or National Guard |
| Coverage | $10,000 to $500,000 in term life insurance benefits; $25,000 to $100,000 for traumatic injuries |
| Beneficiaries | Chosen by the service member; can be changed as needed |
| Conversion | Can be converted to a permanent, individual insurance policy within 120 days of discharge without proof of good health |
| Extension | Free coverage for up to 2 years if totally disabled when leaving the military |
| Continuation | Can be continued as Veterans' Group Life Insurance (VGLI) after leaving the military by paying premiums |
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What You'll Learn
Servicemembers' Group Life Insurance (SGLI)
SGLI provides up to $400,000 of coverage in $50,000 increments for a service member. The spouse of a service member is covered under the Family Servicemembers' Group Life Insurance (FSGLI) with a maximum coverage of $100,000, not exceeding the service member's SGLI coverage. Each dependent child is covered for up to $10,000, and this coverage is provided free of charge.
SGLI offers flexibility in choosing beneficiaries (the recipients of the life insurance payout in the event of the insured person's death) and the level of coverage. Beneficiaries can be changed as needed, and service members can choose to refuse coverage completely. Changes to coverage levels and beneficiaries must be made through the SGLI Online Enrollment System (SOES).
When a service member leaves the military, they have the option to convert their SGLI coverage to a permanent, individual insurance policy within 120 days from their date of discharge without proof of good health. They may also be eligible for a free extension of coverage for up to 2 years if they are totally disabled. Additionally, with Veterans' Group Life Insurance (VGLI), former service members can maintain their life insurance coverage after leaving the military as long as they continue to pay the premiums.
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Veterans' Group Life Insurance (VGLI)
Veterans Group Life Insurance (VGLI) allows veterans to maintain their life insurance coverage after leaving the military, provided they continue to pay the premiums. To be eligible for VGLI, one must meet at least one of the following requirements:
- The individual had Servicemembers' Group Life Insurance (SGLI) while in the military and is within 1 year and 120 days of being released from an active-duty period of 31 or more days.
- They are within 1 year and 120 days of retiring or being released from the Ready Reserve or National Guard.
- They are within 1 year and 120 days of assignment to the Individual Ready Reserve (IRR) of a branch of service or to the Inactive National Guard (ING). This includes members of the United States Public Health Service Inactive Reserve Corps (IRC).
- They are within 1 year and 120 days of being put on the Temporary Disability Retirement List (TDRL).
VGLI provides term life insurance benefits ranging from $10,000 to $500,000, determined by the amount of SGLI coverage held during military service. Individuals can increase their coverage by $25,000 after the first year of VGLI and subsequently every five years until they reach the age of 60, with a maximum coverage of $500,000.
To secure VGLI coverage, individuals must apply within 1 year and 120 days of leaving the military. Applications submitted within 240 days of discharge do not require proof of good health, whereas those submitted after this period necessitate evidence of satisfactory health. VGLI enrollees can select their beneficiaries and modify them as needed, either by accessing their policy online or by completing a VGLI Beneficiary Designation form (SGLV 8721). Additionally, VGLI coverage can be converted to an individual insurance policy at standard premium rates without providing proof of good health.
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Traumatic Injury Protection (TSGLI)
To be eligible for TSGLI, you must meet the following requirements:
- You must be insured by SGLI when the injury occurs.
- Your injury must cause a loss covered by the policy.
- You must suffer a covered loss within two years (730 days) of the traumatic injury.
- You must survive for a period of not less than seven full days from the date of the injury.
TSGLI provides financial assistance to service members who have suffered a qualifying injury, helping them with expenses connected to their recovery and rehabilitation. The benefits include inpatient hospital care at critical care facilities, rehabilitation facilities, and skilled nursing facilities, as well as care to help transition from an inpatient facility to living at home. The amount of financial support provided by TSGLI ranges from $25,000 to $100,000.
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Converting SGLI to permanent, individual insurance
Servicemembers’ Group Life Insurance (SGLI) offers low-cost term coverage to eligible service members. Active-duty members of the Army, Navy, Air Force, Space Force, Marines, or Coast Guard are eligible for full-time SGLI coverage. Additionally, members of the Ready Reserve or National Guard who are assigned to a unit and scheduled to perform at least 12 periods of inactive training per year are also eligible.
When you leave the military, you have the option to convert your SGLI coverage to a permanent, individual insurance policy (like whole life) within 120 days from your date of discharge without proof of good health. To convert SGLI coverage, you must select a company from the Participating Companies listing, apply to a local sales office of the company selected, and provide the agent who takes the application a copy of your separation document (Form DD-214 or NGB-22, or written Reservist orders along with a copy of your last Leave & Earnings Statement (LES)).
It is important to note that the conversion policy must be a permanent policy, and other types of policies such as Term, Variable Life, or Universal Life Insurance are not allowed as conversion policies. Permanent policies offer lifelong coverage and often include features such as cash value accumulation, which can provide additional financial benefits.
Veterans’ Group Life Insurance (VGLI) is another option for transitioning from SGLI. With VGLI, you may be able to keep your life insurance coverage after leaving the military as long as you continue to pay the premiums. VGLI is a term life policy, which means that monthly premiums may be cheap early on but will increase over time as you age.
Commercial life insurance is a third option for transitioning from SGLI. Commercial policies often provide a broader range of coverage options, higher coverage amounts, and the ability to customize your policy to meet your unique requirements and financial goals. Commercial policies are often more flexible and can be a smart option to provide additional coverage for someone with dependents.
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Eligibility for SGLI
Servicemembers' Group Life Insurance (SGLI) is a low-cost term insurance option for eligible service members. If you meet the criteria, you will be signed up automatically through your service branch.
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.
Part-time Coverage
If you are a Reserve member who does not qualify for full-time coverage, you may still be eligible for part-time coverage. You can check your eligibility and level of coverage through your unit's personnel office.
Transitioning from SGLI to VGLI
When you leave the military, you have the option to transition your SGLI coverage to a permanent, individual insurance policy (like whole life) within 120 days from your date of discharge without proof of good health. You may also be able to keep your SGLI coverage for up to 2 years after leaving the military at no cost if you meet certain requirements, such as permanent loss of use of your hands, feet, eyes, etc.
Veterans' Group Life Insurance (VGLI)
With VGLI, you can keep your life insurance coverage after leaving the military as long as you continue to pay the premiums. You may be eligible for VGLI if you meet at least one of the following requirements:
- You had SGLI while in the military and are within 1 year and 120 days of being released from an active-duty period of 31 or more days.
- You are within 1 year and 120 days of retiring or being released from the Ready Reserve or National Guard.
- You are within 1 year and 120 days of assignment to the Individual Ready Reserve (IRR) or the Inactive National Guard (ING).
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Frequently asked questions
Servicemembers’ Group Life Insurance (SGLI) offers low-cost term coverage to eligible service members.
SGLI offers coverage of up to $400,000 for service members, with an additional $100,000 for spouses and $10,000 for each dependent child. Civilian spouses of service members signed up for full-time SGLI are covered under FSGLI automatically.
Yes, with Veterans' Group Life Insurance (VGLI), you can keep your life insurance coverage after leaving the military as long as you continue to pay the premiums. You can also convert your SGLI coverage to a permanent, individual insurance policy within 120 days from your discharge date without proof of good health.
