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Servicemembers’ Group Life Insurance (SGLI) will continue to cover you for the first
120 days after your separation. Beyond 120 days, it’s up to you to buy appropriate life
insurance that will provide for the needs of your family and estate. Explore the various life
insurance options, including those offered by VGLI. By doing so, you will be able to select one
that you feel best suits your needs. When shopping for life insurance, the program you choose
should pay:
Survivor Income Needs: A lump sum for your beneficiary to invest at a modest rate
of interest to pay living expenses over and above what your survivor’s earned income is expected to
be (requires a detailed projection of your survivor’s income and expenses), or
Lost Earnings: A lump sum to replace your earnings during your expected working
life. For example: If you are age 45 and earn $30,000 per year, you would earn approximately
$600,000 by age 65. A rule of thumb is to replace
75% of your lost earnings, which would produce a life insurance requirement of
$450,000, in addition to the other lump sum expenses previously mentioned.
Eligibility
SGLI is low-cost term insurance protection for members of the Uniformed Services. Those eligible for SGLI include:
SGLI will continue to cover you for the first 120 days after your separation, just as if you
were still in uniform. If you are totally disabled at the time of your separation, your SGLI
coverage will continue, free of charge, for up to two years from the date of your separation.
Following expiration of your SGLI coverage extension, you must make your own arrangements for life
insurance. One option is Veterans’ Group Life Insurance (VGLI), offered by the VA .
