Servicemembers’ Group Life Insurance (SGLI) is a life insurance program for active-duty military and reservists. It provides up to $500,000 in life insurance benefits. This helps protect service members’ loved ones if they pass away. The Department of Veterans Affairs (VA) administers SGLI, ensuring military families get financial support during tough times.
Coverage is automatic for eligible service members. They don’t need to do anything to get it. But, they can adjust the coverage amount to fit their needs.
Why SGLI is Important for Military Personnel
SGLI is a key part of a service member’s financial safety net. It ensures loved ones have financial security if something tragic happens. SGLI is different from civilian life insurance because it offers more coverage at lower rates for military members.
It’s important because military personnel face unique risks. Private life insurance might not cover deaths from combat or other service-related hazards.
Key Benefits of SGLI:
- Automatic Coverage – Eligible military members are automatically enrolled, removing the hassle of applying for coverage.
- Flexible Coverage Amounts – Service members can choose coverage from $50,000 up to $500,000 in $50,000 increments.
- Low Premiums – SGLI offers competitive rates, making it one of the most affordable life insurance options for military members.
- Combat Zone Coverage – Unlike some private insurers, SGLI covers death resulting from combat or hazardous duty.
- Seamless Transition to VGLI – Upon leaving the military, SGLI policyholders can convert their coverage to Veterans’ Group Life Insurance (VGLI) without needing a medical exam.
Who is Eligible for SGLI?
SGLI is available to the following groups:
- Active-duty members of the Army, Navy, Air Force, Marines, and Coast Guard
- Members of the National Guard and Ready Reserve
- Cadets and midshipmen at the U.S. military academies
- Commissioned members of the National Oceanic and Atmospheric Administration (NOAA) and Public Health Service
- Members of the Individual Ready Reserve (IRR) or Inactive National Guard (ING) during one-day muster duty
If you fall into one of these categories, SGLI automatically enrolls you unless you choose to decline the coverage.
How Much Does SGLI Cost?
SGLI offers affordable premiums based on the coverage amount selected. Below is a table that outlines the monthly premium costs for different coverage levels:
| Coverage AmountMonthly PremiumTraumatic Injury Protection (TSGLI) | ||
|---|---|---|
| $50,000 | $3.00 | Included |
| $100,000 | $6.00 | Included |
| $150,000 | $9.00 | Included |
| $200,000 | $12.00 | Included |
| $250,000 | $15.00 | Included |
| $300,000 | $18.00 | Included |
| $350,000 | $21.00 | Included |
| $400,000 | $24.00 | Included |
| $450,000 | $27.00 | Included |
| $500,000 | $30.00 | Included |
SGLI offers more than just basic life insurance. It also includes Traumatic Injury Protection (TSGLI) at no extra cost. TSGLI helps service members who suffer severe injuries like amputations or blindness. It provides financial support during their recovery.
SGLI Coverage and Benefits
SGLI covers up to $500,000 in life insurance. If a service member dies, the policy pays out to their beneficiaries. The money can be used for many things, like:
- Covering funeral costs
- Paying off debts
- Supporting surviving family members financially
- Funding children’s education
- Securing a family’s financial future
Service members can also buy extra coverage for their spouses and kids through FSGLI. FSGLI offers up to $100,000 for spouses and $10,000 for each child.
Family SGLI (FSGLI) Premiums
| Spouse Coverage Amount | Monthly Premium (Ages 35 and Under) | Monthly Premium (Ages 36 and Over) |
|---|---|---|
| $10,000 | $0.50 | $0.75 |
| $50,000 | $2.50 | $3.75 |
| $100,000 | $5.00 | $7.50 |
How to Manage Your SGLI Coverage
Managing your SGLI policy is easy. You can change your coverage, pick beneficiaries, or decline coverage. You can do this through the SGLI Online Enrollment System (SOES) on the MilConnect portal. This lets you adjust your coverage based on your personal and financial changes.
For example:
- If you get married or have children, you may want to increase your coverage.
- If your financial situation improves or you have other life insurance policies, you might decide to decrease your coverage.
- It’s important to keep your beneficiary information up to date to ensure the correct individuals receive the payout in the event of your death.
What Happens to SGLI When You Leave the Military?
When you leave the military, you can turn your SGLI into Veterans’ Group Life Insurance (VGLI). VGLI keeps your coverage the same as SGLI, up to $500,000. You don’t need a health check if you apply within 240 days of leaving.
VGLI is great for veterans with health issues. It’s hard to get private insurance with health problems.
You can also switch SGLI to a private policy with a company within 120 days of leaving the military.
How to Apply for VGLI
If you want to switch to VGLI, it’s easy:
- Go to the VA’s eBenefits portal or the VA website to apply online.
- Give details about your SGLI policy and any changes to your beneficiaries.
- Choose how much coverage you want, up to $500,000.
- Apply within 240 days after leaving the military to avoid a health check.
VGLI Premiums
| Coverage Amount | Monthly Premium (Ages 29 and Under) | Monthly Premium (Ages 30-34) | Monthly Premium (Ages 35-39) |
|---|---|---|---|
| $100,000 | $8.00 | $10.00 | $12.00 |
| $250,000 | $20.00 | $25.00 | $30.00 |
| $500,000 | $40.00 | $50.00 | $60.00 |
VGLI premiums go up with age. But, the guaranteed coverage without a health exam is a big plus for veterans.
Key Differences Between SGLI and VGLI
SGLI and VGLI both offer life insurance to military members. But, there are some big differences:
- Eligibility: SGLI is for active service members. VGLI is for veterans who have left the military.
- Premiums: SGLI premiums are the same for everyone. VGLI premiums go up with age.
- Coverage Transition: SGLI covers you automatically. VGLI requires you to apply after leaving the military.
Conclusion
SGLI gives military members and their families peace of mind. It offers affordable life insurance tailored to their risks. With SGLI, you get flexible coverage, automatic enrollment, and extra protections like TSGLI.
When you leave the military, switching to VGLI keeps your financial security. It’s a great choice for veterans. Knowing about SGLI and VGLI helps service members protect their loved ones well.
