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Servicemembers' and Veterans' Group Life Insurance Handbook
7.01 GENERAL
7.02 ELECTION OR CHANGE OF METOD OF PAYMENT
7.03 EFFECTIVE DATE OF ELECTION OR CHANGE
a. An insured member may elect that the proceeds of SGLI be paid to the beneficiary in a lump-sum payment or in 36 equal monthly installments. If the insured member elects a lump-sum payment, the beneficiary(ies) will receive the funds through an Alliance Account. An Alliance Account is an interest bearing draft account with an account book similar to a checking account. 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.
b. An insured may also change the method of settlement at any time without the consent of the beneficiary.
c. If the insured elects a lump-sum payment or makes no election, the beneficiary may choose either the lump-sum settlement or payment in 36 monthly installments.
d. If the insured elects 36 monthly installments, the beneficiary may not elect a lump sum settlement.
a. Insured members should use form SGLV 8286, Servicemembers' Group Life Insurance Election and Certificate, to elect a method of payment or to change a previous election. The member should indicate the option selected in the appropriate column on the form; i.e., either 36 months or lump sum. NOTE: If the election is for a reduced amount of insurance, the member should complete the entire form.
b. The form SGLV 8286 when completed, signed and dated should be submitted to the uniformed service concerned.
c. If the election or change is being made during the period the insurance remains in force following separation or release from duty, the form should be sent to the OSGLI.
An election or change is effective the date the form SGLV 8286 is received in the uniformed service concerned or the date such a change is received at the OSGLI, whichever is applicable.
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