Things to know
- Active-duty military, Ready Reserve and National Guard members and other groups are eligible for SGLI.
- SGLI’s coverage limit is $500,000 with competitive premiums.
- Coverage is automatic.
What is SGLI and how does it work?
SGLI offers life insurance for active-duty members of the armed forces.
If you’re eligible, you’re automatically signed up for SGLI at the maximum coverage amount of $500,000 without the need for a medical exam for life insurance. SGLI only pays a death benefit during the policy term, like term life insurance.
When a service member retires or separates, coverage continues for 120 days at no charge. If they’re disabled when they leave the military, they can extend the free coverage for up to 2 years.
Who’s eligible for SGLI?
Active-duty service members, those on Ready Reserve and National Guard members are all eligible for SGLI.
Other groups also qualify. These include commissioned members of the National Oceanic and Atmospheric Administration, cadets or midshipmen at U.S. military academies and those in the Reserve Officer Training Corps, or ROTC.
How much coverage can you get?
SGLI provides coverage up to $500,000. You can reduce the amount of coverage in $50,000 increments or choose to refuse it completely.
How much does SGLI cost?
SGLI has a relatively low cost and fixed premiums.
Your SGLI premium depends on how much coverage you choose. The current rate is 6 cents per $1,000 of coverage. For example, if you have $500,000 of coverage, your monthly premium will be $30.
Are there extra benefits for SGLI?
SGLI includes Traumatic Injury Protection coverage, or TGSLI. For a $1 monthly premium, those suffering a traumatic injury can receive between $25,000 and $100,000, depending on the type of injury.
Are there downsides?
SGLI coverage has a top limit of $500,000, which may not meet everyone’s financial needs. There are no riders as with some other types of policies, like options to add coverage after qualifying life events or insure children.
SGLI FAQ
Those who had SGLI when they separated or retired from the military can get Veterans’ Group Life Insurance, or VGLI.
You have one year and 120 days after you leave the military to transition to VGLI. If you’re disabled, you may be eligible for a 2-year extension.
Spouses and dependents of service members who have SGLI can get term life insurance through Family Servicemembers’ Group Life Insurance, or FSGLI.
Payouts to beneficiaries from military life insurance, including SGLI, are generally not taxable.