Servicemember's Group Life Insurance (SGLI)
All members of the uniformed services, including service academy cadets are automatically insured under Servicemember's Group Life Insurance (SGLI) for $250,000, unless they elect in writing to be covered for a lesser amount, or not to be covered at all. Full-time coverage is also provided, under certain conditions, for (1) persons who volunteer for assignment to the Ready Reserve of a uniformed service, and (2) persons assigned to or who, upon application, would be eligible for assignment to the Retired Reserve of a uniformed service and have completed at least 20 years of satisfactory service creditable for retirement purposes but have not begun receiving retired pay.
New SGLI Provisions: Public Law 109-13 enacted in May 2005 increases the maximum amount of SGLI coverage electable by the Member from $250,000 to $400,000 in increments of $50,000. The increased coverage amount is available beginning on 1 September 2005. New special beneficiary designation procedures apply that require written notification to the spouse, if applicable, or other person designated by the Member as next of kin, whenever the Member declines coverage entirely or elects less than the maximum amount or designates a beneficiary other than the current spouse. Premiums for the increased amount of coverage elected by the Member above $250,000 are paid by the member’s respective service while serving in an operation or area designated by the Secretary of Defense as a combat operation or a combat zone.
Part-time coverage is provided, under certain conditions, to members of the Reserves who do not qualify for full-time coverage.
SGLI has no loan, cash, paid-up or extended values.
SGLI is provided at no cost for 120 days following an individual's separation or retirement from active duty.
Dependent SGLI Insurance
The Veteran's Opportunities Act of 2001 extended life insurance coverage to spouses and children of service members under the SGLI program effective November 1, 2001.
Family coverage is available for the spouses and children of:
- Active duty service members and
- Members of the Ready Reserve of a uniformed service
Note: Family coverage is available only for members who are insured under the SGLI program. Additionally, it is not available for those insured under the VGLI program.
Coverage amounts for spouses range from $10,000 up to a maximum of $100,000 of coverage depending upon the amount of coverage in place on the service member (the spouse coverage amount may not exceed the amount of the service member's coverage). Rates are based on the age of the spouse and increase according to five year age brackets. Each dependent child is covered automatically for $10,000. Coverage for children is free.
For details and rates, visit the web site at www.insurance.va.gov. Service members retain the option to decline the dependent coverage as well as select a lower amount than the maximum coverage.
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