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Frequently Asked Questions About SGLI
Who
Should You Contact With Questions?
What Does SGLI Provide?
When Does Coverage Begin?
During What Periods Are You Covered?
How Much SGLI Can You Have?
How Do You Obtain or Increase SGLI Coverage?
How Do You Reduce or Cancel SGLI Coverage?
How Much Life Insurance do I Really Need?
Are
You Eligible for SGLI?
How Do You Apply For SGLI?
How
Much Does SGLI Cost?
Who
Can You Designate To Be The Beneficiary?
How Do You Name A Beneficiary?
How Do You Change Your Beneficiary Designation?
What Happens If You Don't Name A Beneficiary?
Can You Specify How The Proceeds Will Be Paid?
Can
SGLI Coverage Be Extended Due to Disability?
How
Do You Convert SGLI To VGLI?
How Do You Convert SGLI To Other Life Insurance?
How
Does A Beneficiary File A Claim For The Proceeds?
How Do Benefits Get Paid?
What Are Alliance Accounts?
What Is Beneficiary Financial Counseling Service?
Can SGLI Benefits be Assigned to Another Person?
Can
A Terminally Ill Policyholder Receive Accelerated Benefits?
Are
SGLI Proceeds Taxable?
How much did SGLI coverage increase?
Who was affected by this change?
What coverage amounts are available?
Is there a special provision for beneficiaries of members who died before Sept
1, 2005?
Under what conditions will DoD pay the special death
gratuity?
How will DoD distribute the special death gratuity?
Did the maximum amount of Family SGLI increase on Sept
1, 2005?
Can I still elect Family SGLI in $10,000 increments?
How did the SGLI increase affect a VGLI member?
Where should I go for more information about the coverage increase or death gratuity?
Commonly
Used SGLI Forms
If
you are unable to obtain the information you need on this site,
you
should contact the Office of Servicemembers' Group Life Insurance
(OSGLI). The OSGLI administers the SGLI and VGLI programs including
the processing and payment of claims. Follow this link for SGLI
contact information.
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SGLI provides group
term life insurance. When you die, money will be paid to the person
(persons) you designate to receive the insurance. The beneficiary
can use this money to pay expenses related to your death or invest
the money to help replace your salary. Since SGLI is term insurance,
it does not have cash or loan values and it does not pay dividends.
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You are automatically
covered for the maximum amount of insurance ($400,000) on your first
day of active duty or active duty for training, unless you decline
or reduce your coverage. If you are performing duty for a period
of less than 31 days, part-time coverage begins on the first day
of the period of duty, including travel. If you previously declined
and later apply for SGLI, your coverage will be effective on the
date the application form is received by your branch of service.
(For detailed information regarding restoration of coverage, see
the SGLI/VGLI Handbook;
Chapter 4 )
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SGLI insureds
are covered during the following periods:
Full Time Coverage...Active Duty
If you are a full-time member on active duty, you are covered 365
days of the year. Your coverage is in effect during the period of
active duty or inactive duty training and for 120 days following
separation of release from duty.
Full Time Coverage...Reserve/Guard Duty
If you are a Reservist or National Guard member and have been assigned to a unit in which
you are scheduled to perform at least 12 periods of inactive duty
that is creditable for retirement purposes, full-time coverage is
in effect 365 days of the year. You are also covered for 120 days
following separation or release from duty.
Part-Time Coverage
Part-time coverage is provided for Reservists or National Guard members who do not qualify
for the full-time coverage described above. Part-time coverage generally
applies to Reservists/National Guard members who drill only a few days in a year. A common
example is members of the Individual Ready Reserve (IRR) who attend
one-day call-ups, commonly referred to as "musters".
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The maximum amount
of SGLI coverage you may have is $400,000. You may elect to be insured
for lesser amounts in increments of $50,000. If you choose to decline
or reduce your SGLI coverage, you must complete and file a form
SGLV 8286, Servicemembers' Group Life Insurance and Certificate,
with your uniformed service. If you have the maximum amount of SGLI,
you have the right to retain any other Government or private insurance.
However, you may not have more than $400,000 of combined SGLI and
VGLI coverage.
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If
you declined or reduced your SGLI coverage and later want to obtain
or increase the coverage, you must complete and sign a form SGLV
8285, Request for Insurance, in the presence of an authorized representative
of your uniformed service. You must answer all medical questions.
The representative will certify and file the application in your
personnel file. Your coverage will become effective immediately,
providing a review of your medical conditions is not required by
OSGLI. Monthly premiums will be deducted from your pay.
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To reduce or cancel your
SGLI, you must complete and file a form SGLV 8286, Servicemembers'
Group Life Insurance Election and Certificate, with your uniformed
service. If you reduce or cancel SGLI on the first day of
duty, your election will be effective immediately. If you make an
election after the first day of duty, it will be effective at the
end of that month. If you are reducing or canceling part-time coverage,
your election will be effective at the end of the last day of the
period of duty you are serving. (For more detailed information,
see the SGLI Handbook,
3.01 and 3.02.)
Married service members
should be aware if they elect to cancel coverage their spouses will
be notified by the Department of Defense of the election.
In addition, if they reduce their coverage below the maximum amount,
their spouses will be notified upon the first reduction of coverage
and any subsequent reductions of coverage if those reductions result
in less coverage than the initial reduction.
Assessing your life insurance needs and options can
difficult. We can help you assess your life insurance
needs and options.
Follow
this link to use our helpful
decision-making tools.
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Most members of
the uniformed services Ready Reserves and National Guard are eligible for full-time
coverage. You are eligible for full-time coverage if you are an
active duty member of the uniformed service and performing duty
under calls or orders that do not specify periods of less than 31
days. If you are a Ready Reservist or National Guard member and are assigned to a unit in which
you may be required to perform active duty or active duty for training
and each year will be scheduled to perform at least twelve periods
of inactive duty training, you are also eligible for full-time SGLI
coverage.
If you are an eligible member of the Reserves or National Guard and do not qualify
for full-time coverage while performing active duty or active duty
for training under calls specifying periods of less than 31 days,
you may be eligible for part-time coverage.
Detailed information regarding eligibility can be found in the SGLI/VGLI
Handbook Chapter 1, Section 1.03.
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SGLI coverage is
automatic, so you don't have to apply for it. You should, however,
complete and file a form SGLV 8286, Servicemembers' Group Life
Insurance and Certificate, to designate a beneficiary or beneficiaries
to receive the proceeds. If you previously declined or reduced SGLI
coverage and later decide you want coverage, you may request such
coverage in writing through your uniformed service. You will need
to complete and sign an application form SGLI 8285, Request for
Insurance, in the presence of a representative from your uniformed
service.
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The current monthly cost of
SGLI is $28.00 for $400,000 of coverage plus $1.00 for Traumatic
SGLI for a total cost of $29.00. If you choose to be insured for
less than the maximum $400,000,
the cost
is $3.50
per month
per $50,000. This amount will be automatically deducted from your
service pay. The premium for part-time coverage is $28.00 per
year
for $400,000 of coverage. Members of the Individual Ready Reserve
(IRR) will be charged $1.25 for $400,000 of coverage for 1-day
call-ups.
SGLI premiums decreased effective July 1, 2008. Follow this link for more information about the premium rate decrease.
Listed below are the current monthly premiums for SGLI at different
levels of coverage.
SGLI
Premium Rates by Coverage Amount Effective July 1, 2008
| 50,000 |
$3.25 |
$1.00 |
$4.25 |
| 100,000 |
$6.50 |
$1.00 |
$7.50 |
| 150,000 |
$9.75 |
$1.00 |
$10.75 |
| 200,000 |
$13.00 |
$1.00 |
$14.00 |
| 250,000 |
$16.25 |
$1.00 |
$17.25 |
| 300,000 |
$19.50 |
$1.00 |
$20.50 |
| 350,000 |
$22.75 |
$1.00 |
$23.75 |
| 400,000 |
$26.00 |
$1.00 |
$27.00 |
|
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You may designate
any person, firm, corporation or legal entity (including your own
estate individually or as a trustee) as principal or contingent
beneficiary. Þ Note: State divorce decrees, separation agreements
or other state court or municipal court documents are not binding
on the determination of a beneficiary.
Married service members
should be aware that if they name a beneficiary other than their
spouse or child their spouse will be notified by the Department
of Defense that a change has been made. The only exceptions to this
rule are if:
1. the spouse
has already been notified of the change, and
2. the spouse
was not the beneficiary in the election prior to the current beneficiary
change.
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You must complete a
form SGLV 8286, Servicemembers' Group Life Insurance Election
and Certificate and submit it to your uniformed service. You
may designate
more than one principal beneficiary, but you need to indicate
the shares each shall be paid. On this same form, you may designate
a contingent beneficiary or beneficiaries to receive the proceeds
in the event the principal beneficiary dies before you.
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You may, at
any time, change or cancel a previous designation. To change or
cancel a designation, you simply complete, sign and file a new form
SGLV 8286 with your uniformed service. It is effective on the date
it is received by the uniformed service.
Married service members
should be aware that if they name a beneficiary other than their
spouse or child their spouse will be notified by the Department
of Defense that a change has been made. The only exceptions
to this rule are if:
1.
the spouse has already been notified of the change, and
2.
the spouse was not the beneficiary in the election prior to the
current beneficiary change.
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To avoid confusion, we encourage you
to designate a beneficiary and file it with your uniformed service.
However, if you do not name a beneficiary, the insurance proceeds
will be paid "By Law." The order of precedence is first to the
surviving spouse, then to any children, then to the parents and
finally to
a duly appointed executor or administrator of the estate.
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SGLI
proceeds may be paid in one lump sum or in 36 equal installments.
You may specify one of these two options on the form SGLV 8286.
OSGLI pays the proceeds according to the option you chose. If you
do not specify how the proceeds are to be paid, they will be paid
to the beneficiary in one lump sum.
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If you are totally disabled at the time of separation from
active duty, your full-time coverage will be extended for as long
as the total disability continues, up to a maximum of two years.
You are eligible to apply for VGLI during this extended period of
SGLI coverage. If you incur a disability while under part-time coverage
and you are not able to acquire commercial life insurance at a standard
rate because of the disability, your SGLI coverage will be extended
for 120 days following the period of duty in which the disability
occurred. You may apply for VGLI during this 120-day extension.
Important: An extension of SGLI due to total
disability is not automatic. You must apply to the Office of Servicemembers'
Group Life Insurance for the extension.
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You may convert your SGLI coverage
to VGLI upon separation from service. You have 120 days following
separation to apply for VGLI. OSGLI will send you a computer printout
application, usually within 45 to 60 days following your release.
You may also submit an application for VGLI using the form SGLV
8714, Application for VGLI. If you use this form, you need to also
furnish a copy of your DD 214 or other proof of service. The completed
application and the first premium must be sent to OSGLI within 120
days after your separation from service. (If you file an application
for VGLI after this 120-day period, you must provide proof of good
health and the application must be submitted within one year after
your SGLI terminates.) You are not eligible to apply for VGLI more
than one year and 120 days after your separation from service.
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You may convert your SGLI to an individual policy of life insurance
with a commercial company that participates in the program within
120 days following your release from active duty. You may convert
up to the amount of SGLI coverage you hold. Follow this link to
our Conversion Page
to view information on how to convert to an individual policy with
a list of participating companies. You will be issued an individual
policy at the company's standard premium rate regardless of your
health. No disability or other supplemental benefits will be provided
on converted policies.
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If you die in service, the uniformed service will furnish to your
beneficiary a form SGLV 8283, Claim For Death Benefits. The beneficiary
should complete this form and submit it to OSGLI.
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Once OSGLI receives proof that an insured member has died,
it will pay the proper beneficiary the amount for which the member
was insured. If you did not designate a beneficiary, the proceeds
will be paid in the order of precedence as provided by law. OSGLI
will pay the proceeds to the beneficiary either in one lump sum
or in 36 installments, according to the option you specified.
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An Alliance Account is an interest bearing draft account with an account book similar to a checking account. An Alliance account is opened for SGLI and VGLI beneficiaries. Insurance proceeds are deposited in the beneficiary's name and the beneficiary can write drafts for any amount up to the full amount of the proceeds. This gives the beneficiary time to make important financial decisions, while their funds are secure and earn continuous interest.
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Beneficiary Financial Counseling Services (BFCS) is
an extra benefit offered to beneficiaries of Servicemembers' Group Life Insurance
and Veterans' Group Life Insurance policies. As a beneficiary,
you can take advantage of free professional financial advice. Counseling
services are provided by FinancialPoint®.
For more information, please visit our Beneficiary
Financial Counseling page.
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Under the
law, a beneficiary is not permitted to assign or transfer SGLI
proceeds to any other person or entity. In addition,
payments of SGLI benefits are not subject to claims of creditors
of the insured or creditors of the beneficiary.
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Yes. The SGLI and VGLI programs offer an accelerated
benefits option to terminally ill policyholders. An policyholder is considered
to be terminally ill if he or she has a written medical prognosis
of 9 months or less to live. All terminally ill policyholders are
eligible to take up to 50% of their SGLI or VGLI coverage in a
lump
sum. Many commercial life insurance companies offer accelerated
benefits in their policies. Accelerated benefits, paid prior to
death, are, of course, not available for payment to survivors.
A
policyholder must submit SGLV 8284, Servicemember/Veteran Accelerated Benefit Option
Form.
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In
general, all VA benefits are exempt from taxation. SGLI proceeds
that are payable at the death of the insured are excluded from
gross
income for tax purposes. (The value of the proceeds, however,
may be included in determining the value of an estate and that
estate
may ultimately be subject to tax.) If SGLI proceeds are paid
to your beneficiary in 36 equal installments, the interest portion
included in these installments is also exempt from taxation. In
addition, delayed settlement interest (interest accrued from the
date of the insured's death to the date of settlement) is also
exempt from taxation. You are not required to report to the Internal
Revenue
Service (IRS) any installment interest or delayed settlement
interest that you received in addition to the proceeds.
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The maximum level of SGLI increased automatically
from $250,000 to $400,000, effective September 1, 2005.
All service members, reservists and National Guard members eligible for full-time
SGLI were automatically insured for $400,000 regardless of any
previous requests to reduce or decline SGLI.
SGLI is available only in increments
of $50,000. Previously, service members could elect coverage in
increments of $10,000.
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Yes, the Department of Defense (DoD) will pay a special
death gratuity for deaths that occurred under specific conditions
on or after October 7, 2001 and prior to September 1, 2005. This
special gratuity will total $238,000 and will include:
- a $150,000 SGLI payment (the difference between the old $250,000
SGLI coverage amount and the current $400,000 SGLI coverage amount) AND,
- an $88,000 DoD death gratuity payment (the difference between
the old $12,420 DoD death gratuity and the current $100,000 death
gratuity.)
DoD will pay the special death gratuity to survivors
of those who died in a designated combat operation or combat zone
or occurred while training for combat or performing hazardous duty
on or after October 7, 2001 and before September 1, 2005. The SGLI
death gratuity of $150,000 will be payable regardless of whether
or not the member had SGLI coverage at the time of death.
DoD will distribute the $238,000 death gratuity as
follows:
- $88,000 in equal shares to the beneficiary or beneficiaries who were paid
the original DoD death gratuity.
- $150,000 to the beneficiary or beneficiaries who received the SGLI proceeds,
in direct proportion to the shares they originally received.
In the case where a member had no SGLI coverage, to the eligible
beneficiary "by law."
No, the maximum amount of Family SGLI is still $100,000,
however, your spousal coverage may not exceed your SGLI coverage
amount.
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No, the maximum amount of Family SGLI is still $100,000,
however, your spousal coverage may not exceed your SGLI coverage
amount.
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Members
who were insured under VGLI before September 1, 2005, were not
affected. However, all service members who separate
on or
after September 1, 2005, with SGLI coverage greater than $250,000
can now apply for VGLI at the higher level. An illustration is
provided below.
$400,000 |
$400,000 |
$350,000 |
$350,000 |
$300,000 |
$300,000 |
$250,000 |
$250,000 |
$200,000 |
$200,000 |
$150,000 |
$150,000 |
$100,000 |
$100,000 |
$50,000 |
$50,000 |
$0 |
$0 |
* Lesser amounts of coverage available in increments of $10,000.
Here are specific points of contact for specific situations:
Casualty Assistance Officer |
SGLI Claims Assistance |
Office of Servicemembers' Group
Life Insurance (OSGLI) at (800) 419-1473 |
| Casualty Assistance Officer |
Retroactive Death Gratuities |
Your Branch of Service
Casualty HQ's |
| Casualty Assistance Officer |
How to Appeal DG Payment Decisions |
Your Branch of Service Casualty HQ's |
Military Service Coordinator, Other Program Coordinator, VA Regional Office Staff |
General Program Information/Application & Claim Assistance |
VA Insurance Service Staff Greg Hosmer: (215) 842-2000, x 4280 Kristan Hoffman: (215) 842-2000, x 3094 |
Service member/Separating Service member |
Payroll/Personnel Questions |
Unit Commander |
Beneficiary of a deceased service member |
Death Gratuities & Claim Assistance |
The Branch of Service Casualty HQ's or the Casualty Assistance Officer to whom you were assigned. |
| Beneficiary of a deceased service member |
A Recent In-Service Death |
Office of Servicemembers' Group Life Insurance
(OSGLI) at (800) 419-1473 |
If you need
a SGLI form, it may be available for download from this site. Go
to the forms download page and
follow the instructions on that page. Once you have downloaded the
form that you need, complete it by following the directions contained
on the form.
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