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Accelerated Benefits Option
The Accelerated Benefit Option gives terminally-ill SGLI, Family SGLI and VGLI policyholders as well as TSGLI claimants access to the death benefits of their policies before they die. The member may receive a portion of the face value of the insurance in a lump-sum payment.
A member is eligible to receive an Accelerated Benefit if he/she or a covered spouse has a valid written prognosis from a physician of 9 months or less to live.
Only the insured member may apply for an Accelerated Benefit. No one else can apply on the member's behalf. In the case of a terminally ill spouse, only the member may apply for accelerated benefits.
The amount of Accelerated Benefit available to a member is up to 50% of the face value of the member's insurance coverage. If a member elects less than the maximum, the amount requested must be in increments of $5,000
The portion of the face value of insurance which is not paid in a lump sum as an accelerated benefit is payable to the member's designated beneficiary or beneficiaries upon his or her death. In the case of a terminally ill spouse, the remainder of the insurance is payable to the member upon the spouses death.
Both forms can be downloaded from the forms page on this site. The application contains one part to be completed by the insured and a second part to be completed by the insured's physician. In addition, the branch of service for active duty service members must complete part of the form. The member must submit the completed application form to the Office of Servicemembers' Group Life Insurance, 80 Livingston Avenue, Roseland, New Jersey 07068-1733.
For more information on ABO, read about it in chapter 5 of the SGLI VGLI Handbook, or contact OSGLI.
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