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Legislation
Affecting SGLI & VGLI Policyholders
Below is a summary of all the legislation affecting
the SGLI and VGLI programs since their inception.
Public Law 89-214, effective September 29, 1965, established the Servicemens'
Group Life Insurance (SGLI) program. The law provided $10,000 of group
life insurance for all active duty members of the Army, Navy, Air
Force, Marine Corps, Coast Guard, and the Commissioned Corps of the
PHS and NOAA.
Public Law 91-291, effective June 25, 1970, amended the original law
by increasing the maximum amount of coverage for all members to $15,000
and by extending eligibility for limited periods of coverage to additional
members.
Public Law 92-315, effective June 20, 1972, extended coverage to cadets
or midshipmen of the United States Military Academy, United States
Naval Academy, United States Air Force Academy and the United States
Coast Guard Academy.
Public Law 93-289, effective May 24, 1974, increased the maximum amount
of coverage for all members to $20,000 and extended full-time SGLI
coverage to members of the Ready Reserves and Retired Reserves. The
new law also provided for the conversion of SGLI to a 5-year nonrenewable
term policy called Veterans' Group Life Insurance (VGLI).
Public Law 97-66, effective December 1, 1981, increased the maximum
amount of insurance under both the SGLI and VGLI programs to $35,000.
Public Law 99-166, effective January 1, 1986, increased the maximum
amount of coverage for all members to $50,000 and extended VGLI coverage
to members of the IRR and Inactive National Guard (ING).
Public Law 102-25, effective April 6, 1991, increased the maximum
amount of insurance for all members to $100,000, with lesser amounts
available in increments of $10,000.
Public Law 102-568, effective December 1, 1992, increased the maximum
SGLI and VGLI available to $200,000. Basic coverage remained at $100,000
and an additional $100,000 of supplemental coverage was made available
to members of the uniformed services upon application. The new law
also provided that VGLI in effect on or after December 1, 1992, is
renewable. (See Chapter
12 of the SGLI/VGLI Handbook.)
Public Law 104-106, effective April 1, 1996, increased the amount
of basic coverage to $200,000. Members were automatically insured
for $200,000 and had to elect in writing to decline or reduce their
coverage to less than $200,000. The law also granted to Secretaries
of the military service departments the authority to terminate SGLI
coverage when premiums are not paid.
Public Law 104-275, effective October 9, 1996, merged Retired Reservists
SGLI into the VGLI program and extended VGLI to members of the Ready
Reserves. The amendment also provided that members can convert their
SGLI directly to a commercial policy of insurance and may convert
VGLI to a commercial policy at any time rather than only at the end
of 5-year periods. The new law also renamed the SGLI program to Servicemembers'
Group Life Insurance and included a provision that requires representatives
of the military services to provide general information regarding
insurance and SGLI and VGLI to its members.
Public Law 105-368, effective February 9, 1999, established an Accelerated
Benefit option for terminally-ill SGLI and VGLI insureds. Under this
option, a terminally-ill member may receive in a lump-sum payment
a portion of the face value of the insurance as an accelerated death
benefit.
Public Law 106-419 increased the maximum amount of SGLI and VGLI coverage
from $200,000 to $250,000 effective April 1, 2001. It also provided
that members of the Individual Ready Reserves (IRR) who are subject
to involuntary call-up authority will be eligible to enroll in the
SGLI program.
Public Law 107-14, effective November 1, 2001, established Family
SGLI coverage for members of the uniformed services who are eligible
for SGLI coverage. This law allows for elected SGLI insurance coverage
of the member's spouse for up to $100,000, in $10,000 increments,
and automatic coverage of the member's dependent children for $10,000
for the time that they have full-time SGLI coverage. It also allows
the dependent spouse the opportunity to convert SGLI Family coverage
to a private life insurance policy.
Public
Law 109-13 increased coverage in the SGLI Program from $250,000
to $400,000, effective September 1, 2005. It also provided
that coverage must now be elected in $50,000 increments.
Public
Law 109-80 made this increase in coverage permanent.
Additionally,
this law also created a new program of insurance in SGLI, Traumatic
Injury Coverage, effective December 1, 2005. This coverage provides
servicemembers protection against loss due to traumatic injuries
and is designed to provide financial assistance to members so their
loved ones can be with them during their recovery from their injuries.
The coverage ranges from $25,000 to $100,000 depending on the nature
of the injury.
The Veterans' Group Life Insurance (VGLI) program was created by
Public Law 93-289, The Veterans Insurance Act of 1974. The law was
enacted
May 24, 1974, and was effective August 1, 1974. It allowed veterans,
upon separation, to convert their SGLI to a 5-year nonrenewable
term
policy called VGLI.
Public Law 99-166 was enacted December 3, 1985, and became effective
January 1, 1986. It extended VGLI coverage to members of the Individual
Ready Reserve (IRR) and Inactive National Guard (ING). It also provided
that, if individuals remained in the IRR or ING through the 5-year
period, they were entitled to renew their VGLI for additional 5-year
periods. There is no limit on the number of times they may renew provided
they remain in the IRR or ING. At the end of the term period, these
insureds have the right to convert their insurance to a permanent
plan life insurance policy with one of the companies that participate
in the program rather than renewing it.
Public Law 102-568, effective December 1, 1992 provided that VGLI
in effect on or after the effective date of the law will be renewable
for additional 5-year periods for all VGLI insureds.
Public Law 104-275, effective October 9, 1996, merged Retired Reservists
SGLI into the VGLI program and extended VGLI coverage to members of
the Ready Reserves who have SGLI coverage and who are released from
a drilling assignment. It also provided that individuals with VGLI
coverage may, at any time, convert their VGLI coverage to an individual
commercial policy, rather than only at the end of a 5-year renewal
period.
Public Law 105-368, effective February 9, 1999, established an Accelerated
Benefit Option for terminally-ill SGLI and VGLI insureds. Under this
option, a terminally-ill member may receive in a lump sum payment
a portion of the face value of the insurance as an accelerated benefit.
Public
Law 106-419 increased the maximum amount of SGLI and VGLI coverage
from $200,000 to $250,000, effective April 1, 2001.
Public
Law 109-13 increased the maximum amount of SGLI and VGLI coverage
from $250,000 to $400,000 effective September 1, 2005. Public
Law 109-80 made this increase permanent.
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