Servicemembers Group Life Insurance

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Servicemembers Group Life Insurance (SGLI) is a program that provides low-cost life insurance coverage to eligible service members. Members of the armed forces, including those in the Army, Navy, Air Force, Marine Corps, Coast Guard, and National Guard, are eligible for SGLI coverage. The program is designed to provide coverage for military members during their service, as well as during their transition back to civilian life.

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How Does SGLI Work?

SGLI is a term life insurance policy that provides coverage for service members up to a maximum of $400,000. The coverage amount is based on the member’s pay grade, and the premiums are deducted from the member’s pay. The coverage is automatic for most members, and the premiums are competitive with those offered by private insurers.

When a service member enlists in the military, they are automatically enrolled in SGLI for the maximum coverage amount of $400,000. The premiums are deducted from the member’s pay, and the coverage continues as long as the member remains in the service. Members can also choose to reduce or decline coverage at any time.

If a service member dies while covered by SGLI, the death benefit is paid to the member’s designated beneficiary. The benefit is tax-free and can be paid in a lump sum or in installments. The beneficiary can be anyone the member chooses, including a spouse, child, parent, or other family member or friend.

Who Is Eligible for SGLI Coverage?

Almost all active-duty service members are automatically enrolled in SGLI when they enter the military. Members of the National Guard and Reserves are also eligible, as long as they are on active duty or on a period of training.

In addition to active-duty members of the military, veterans who have been discharged under conditions other than dishonorable are eligible for Veterans Group Life Insurance (VGLI), which is a similar program to SGLI. VGLI allows eligible veterans to continue their SGLI coverage without providing evidence of insurability.

What Are the Benefits of SGLI?

SGLI provides several benefits to service members and their families, including:

  • Low-cost coverage: SGLI premiums are competitive with those offered by private insurers, and the program provides coverage for up to $400,000.
  • No medical underwriting: Service members are automatically eligible for coverage, regardless of their health status or medical history.
  • Flexible payment options: The premiums for SGLI can be deducted from a service member’s pay, making it easy and convenient to pay for coverage.
  • Tax-free death benefit: If a service member dies while covered by SGLI, the death benefit is paid to the member’s designated beneficiary tax-free.
  • Conversion options: If a service member leaves the military, they have the option to convert their SGLI coverage to VGLI or another permanent life insurance policy without having to provide evidence of insurability.

FAQ

How much coverage does SGLI provide?

SGLI provides coverage for up to $400,000, depending on the member’s pay grade. Members can also choose to reduce or decline coverage at any time.

Who is eligible for SGLI coverage?

Almost all active-duty service members are automatically enrolled in SGLI when they enter the military. Members of the National Guard and Reserves are also eligible, as long as they are on active duty or on a period of training.

What happens to SGLI coverage when a service member leaves the military?

When a service member leaves the military, they can choose to convert their SGLI coverage to VGLI or another permanent life insurance policy without having to provide evidence of insurability.

What happens if a service member dies while covered by SGLI?

If a service member dies while covered by SGLI, the death benefit is paid to the member’s designated beneficiary tax-free. The beneficiary can be anyone the member chooses, including a spouse, child, parent, or other family member or friend.

How are SGLI premiums paid?

SGLI premiums are deducted from a service member’s pay, making it easy and convenient to pay for coverage.

SGLI Coverage and Premiums
Pay Grade
Coverage Amount
Monthly Premiums
E-1 to E-4
$400,000
$29.00
E-5 to E-8
$400,000
$29.00
E-9 and Above
$400,000
$29.00
W-1 to W-4
$400,000
$29.00
W-5
$400,000
$29.00
O-1
$400,000
$29.00
O-2
$400,000
$29.00
O-3
$400,000
$29.00
O-4
$400,000
$29.00
O-5
$400,000
$29.00
O-6
$400,000
$29.00
O-7 and Above
$400,000
$29.00
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