| SGLI benefits are provided by the government for all service members on active duty and paid for by monthly deduction from their pay. There are no underwriting requirements for this insurance at the time of entry into military service. It is automatically given to service members at the maximum amount, and everyone is covered for the same cost regardless of health. Service members must request to change the insurance policy coverage. |
Group Term insurance. No refunds are provided for unused death benefit. $400,000 maximum death benefit allowed. Benefits paid in lump sum or 36 monthly installments. Costs $3.50 per month per $50,000 by payroll deduction for active duty member coverage. Maximum coverage automatically provided unless reduced or refused by the active duty member. Reduced or refused insurance coverage can be restored by written request with proof of good health and compliance with other requirements. SGLI terminates 120 days after leaving active duty for service members, their spouses and children. Accelerated Death Benefit Option provides up to 50% of the death benefit for a terminally ill service member with 9 months or less left to live. Beneficiary Financial Counseling Service available to survivors.
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Traumatic Injury Protection |
Automatically provided for all service members carrying any amount of SGLI for $1.00 per month. This is not life insurance, it is disability compensation for serious injury and loss of limbs. Compensation amounts are up to $100,000.
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This is valuable protection and if military members totally canceled their SGLI they would then lose this benefit.
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Family SGLI (FSGLI) Coverage
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Provides spouse coverage with a death benefit of to $100,000. Coverage is automatic unless service member specifically requests that it be canceled. Premiums for this insurance are determined by the spouse’s age and increase in 5 year increments. Children are covered with $10,000 of life insurance per child until the child’s 18th birthday at no cost. Spouse SGLI may be converted to an individual permanent commercial policy, but not VGLI. There is no conversion for child coverage.
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What Happens To SGLI Benefits When Leaving The Service? |
Service members about to leave active duty have the option of replacing SGLI with Veterans Group Life Insurance (VGLI). Points to consider in making this decision include: |
VGLI does not require proof of medical insurability, so service members who have any health situation that could result in denial by other insurers need to be sure of their insurability before declining VGLI. Retention on active duty with the uninformed services does not necessarily mean a service member is medically insurable. VGLI coverage is limited to the maximum of SGLI coverage held at release from active duty. In many cases, this is not enough insurance to replace the significant survivors’ benefit package which will terminate upon leaving the service. - In many cases the amount of VGLI available is not enough to replace the survivor benefits package which will terminate upon leaving the service. Determine your individuals needs.
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