Money, Insurance - Army Times

SGLI basics: What you need to know

Servicemembers' Group Life Insurance provides term life insurance to service members and makes payments to their beneficiaries. Military personnel are automatically covered for $400,000, at a cost of $28 per month, on their first day of active duty or active duty for training, unless they decline to accept SGLI or decide to reduce their coverage.

Service members covered under SGLI also receive automatic coverage for traumatic injuries at a premium of $1 per month, for a total premium of $29 per month. The traumatic injury coverage ranges up to $100,000, depending on the type of injury.

Service members have all SGLI premiums paid by the government while they are serving in support of Operation Enduring Freedom or Operation Iraqi Freedom.

SGLI covers active-duty troops 365 days a year and for 120 days after separation from the military. Reservists have coverage 365 days a year if they are assigned to a unit scheduled for at least 12 periods of drilling that is creditable for retirement purposes. They, too, are covered for 120 days after separation.

Part-time SGLI is available to reservists not eligible for full-time coverage. Reservists not assigned to a unit or scheduled for drilling can get SGLI for the period they are on active duty. Coverage ends after active duty.

If a service member declines or reduces SGLI coverage, then wants to get or increase it, he must fill out form SGLV 8285, Request for Insurance, in the presence of an authorized representative of his service. Form SGLV 8286 is used to reduce or cancel SGLI coverage, or to designate a beneficiary to get payments after the service member's death.

SGLI is available in increments of $50,000 up to a maximum $400,000. Current monthly premium rates:

Coverage amount       Monthly premium

$50,000                       $3.50

100,000                      7.00

150,000                      10.50

200,000                      14.00

250,000                      17.50

300,000                      21.00

350,000                      24.50

400,000                      28.00

Source: Department of Veterans Affairs