Servicemembers’ Group Life Insurance is low-cost term insurance protection for members of the armed forces. All service members on active duty, ready reservists, members of the Commissioned Corps of the National Oceanic and Atmospheric Administration and the Public Health Service, cadets and midshipmen of the four service academies, and members of the Reserve Officer Training Corps are eligible for Servicemembers’ Group Life Insurance. Servicemembers Group Life Insurance provides term life insurance to active duty Servicemembers and Ready Reservists. Coverage is available in $50,000 increments up to the $400,000 ceiling. Servicemembers Group Life Insurance premiums are $.065 per $1,000. In order to qualify for this benefit program, you must currently be serving in the military in any of the following branches/areas:
- Active duty or Ready Reserve
- Commissioned Corps of the National Oceanic and Atmospheric Administration Corps
- Reserve Officer Training Corps
- United States Public Health Service
- Cadet/midshipman in one of the four service academies
If you are a service member in one of the above categories, you are automatically covered under SGLI for the maximum amount of insurance unless you reduce or decline you coverage. You can convert their full-time SGLI coverage to renewable term insurance under the Veterans’ Group Life Insurance (VGLI) program or to a permanent plan of insurance with one of the participating commercial insurance companies.
After leaving active duty, Servicemembers must convert their insurance to either Veterans Group Life Insurance or another commercial insurance plan within 120 days. To convert your insurance to a commercial plan:
- Find a company that accepts Servicemembers Group Life Insurance.
- Contact the sales department of the insurance company you selected for an application.
- Contact your Servicemembers Group Life Insurance agent and ask them for a letter verifying your coverage. This must be given to your new insurance representative.
Along with the letter, give your new insurance agent a copy of your separation document. You can convert your coverage to a commercial policy at standard premium rates—and you don’t have to provide proof of good health—but the policy you convert to must be a permanent policy, also known as a whole life policy.
You can also add riders your Servicemembers’ Group Life Insurance. Traumatic Injury Protection Program is a disability rider that provides automatic traumatic injury coverage for losses due to traumatic injuries. Your spouse and children can be covered under the Family Servicemembers’ Group Life Insurance. Spouses and dependent children of active duty service members and members of the Ready Reserve insured under Servicemembers’ Group Life Insurance program are eligible for coverage under the Family Servicemembers’ Group Life Insurance.
