SGLI: Servicemembers' Group Life Insurance Complete Guide (2025)

Bottom Line Up Front: SGLI provides $500,000 life insurance for $32/month (cheapest life insurance available). Coverage is automatic unless you decline. Increases to $1,000,000 available for combat deployed. Family SGLI covers spouse ($100,000 max) and children ($10,000). Must update beneficiary after major life events (marriage, kids, divorce). SGLI converts to VGLI after separation (same coverage, higher rates).

SGLI Basics

Coverage Amount

• Maximum: $500,000 (standard)
• Combat deployment: Can increase to $1,000,000 temporarily
• Minimum: $50,000 (can reduce in $50k increments)

Cost (2025 Rates)

• Full coverage ($500,000): $32/month
• Reduced coverage: $0.065 per $1,000 coverage
  • $250,000 = $16.25/month
  • $100,000 = $6.50/month
  • $50,000 = $3.25/month

Automatic Enrollment

• All active duty automatically enrolled at $500,000
• Deducted from pay
• Must ACTIVELY decline if you don't want it

Why most keep it:

• Cheapest life insurance available
• No medical exam required
• Full coverage regardless of health
• Instant approval

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SGLI vs. Civilian Life Insurance

Comparison (30-Year-Old E-5, $500,000 Coverage)

| Type | Monthly Cost | Coverage | Exam Required? | Portable? | |----------|-----------------|-------------|-------------------|---------------| | SGLI | $32 | $500,000 | No | No (ends at separation) | | USAA Term Life | $35-$50 | $500,000 | Yes | Yes | | Navy Federal Term | $30-$45 | $500,000 | Yes | Yes | | Whole Life (Northwestern Mutual) | $250-$400 | $500,000 | Yes | Yes |

Key differences:

• SGLI = Cheapest, no exam, but not portable
• Term life = Slightly more, portable, requires exam
• Whole life = 10x more expensive, NOT worth it for most

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Family SGLI (FSGLI)

Spouse Coverage

Maximum: $100,000
Cost: Varies by spouse age

Age-Based Rates (per $100,000):

• Under 35: $6/month
• 35-39: $10/month
• 40-44: $15/month
• 45-49: $25/month
• 50-54: $40/month
• 55-59: $70/month
• 60+: $110/month

Automatic enrollment: Spouse gets $100,000 unless you decline or reduce

Child Coverage

Amount: $10,000 per child
Cost: FREE (no premium)
Eligibility: Birth to 18 years (or 23 if full-time student)

Coverage includes:

• Stillbirth (after 20 weeks)
• Death of child
• $10,000 per child (not total - each child gets $10,000)

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SGLI Beneficiary (CRITICAL)

Who Gets Your SGLI?

Order of precedence (if you don't designate):

1. Spouse
2. Children (split equally)
3. Parents (split equally)
4. Executor of estate
5. Next of kin per state law

Problem: This may NOT be what you want

Example issues:

• Estranged spouse gets everything (even if separated)
• Ex-girlfriend still listed (you forgot to update)
• Parents get money (but you wanted it to go to siblings)

How to Update Beneficiary

Method 1: Online (Fastest)

1. Log into myPay
2. Go to SGLI section
3. Update beneficiary
4. Save changes

Method 2: Paper Form

• SGLV 8286 (Beneficiary Designation)
• Available at personnel office
• Fill out, sign, submit

When to update:

• ✅ Marriage (within 1 week)
• ✅ Divorce (within 1 week)
• ✅ Birth of child
• ✅ Death of beneficiary
• ✅ Estrangement from family
• ✅ Annually (review to ensure still correct)

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TSGLI (Traumatic Injury Coverage)

What Is TSGLI?

Traumatic Servicemembers' Group Life Insurance

• Automatic rider on SGLI
• Pays lump sum for traumatic injuries
• Cost: $1/month (automatically included)

Coverage Amounts ($50,000 - $100,000)

$100,000 for:

• Loss of both hands, feet, or eyes
• Quadriplegia, paraplegia
• Total and permanent loss of speech or hearing

$75,000 for:

• Loss of one hand and one foot
• Loss of hand/foot + eye

$50,000 for:

• Loss of one hand, foot, or eye
• Burns over 20%+ of body
• Traumatic brain injury (severe)

Uses:

• Modify home for wheelchair
• Cover expenses during recovery
• Support family during injury

Payment: Retroactive to injury date, paid within 90 days of approval

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VGLI (Veterans' Group Life Insurance)

What Is VGLI?

Conversion of SGLI after separation

• Same coverage ($500,000 max)
• NO medical exam required (if convert within 240 days)
• Higher rates than SGLI (age-based)

Rates (Examples)

Age 30, $500,000 coverage:

• VGLI: $50/month

Age 40, $500,000 coverage:

• VGLI: $85/month

Age 50, $500,000 coverage:

• VGLI: $160/month

Age 60, $500,000 coverage:

• VGLI: $310/month

When to Convert to VGLI

Convert if:

• You have health issues (can't qualify for civilian insurance)
• You're older (50+) and civilian rates are similar
• You want guaranteed coverage

Don't convert if:

• You're young (under 40) and healthy
• Civilian term life is cheaper (compare USAA, Navy Federal)
• You don't need life insurance (no dependents)

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How Much Life Insurance Do You Need?

The 10x Rule

Need: 10x your annual income

Example:

• E-6 income: $60,000/year
• Life insurance needed: $600,000
• SGLI provides: $500,000
• Gap: $100,000 (get additional civilian policy)

The Detailed Method

Calculate:

1. Replace income: $60,000/year × 10 years = $600,000
2. Pay off debts: $30,000 (car loan, credit cards)
3. College for kids: $100,000 ($50,000 per kid × 2)
4. Emergency fund: $20,000
5. Total need: $750,000

Your coverage:

• SGLI: $500,000
• Need additional: $250,000 (get civilian term life)

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SGLI Claim Process (If Service Member Dies)

Step 1: Notification

• Military notifies beneficiary
• Casualty officer assists with paperwork

Step 2: Submit Claim

• SGLV 8283 (Claim Form)
• Death certificate
• Proof of beneficiary identity

Step 3: Payment

• Processed within 7-10 days
• Direct deposit or check
• Tax-free (life insurance proceeds not taxed)

Options for Payment

Option 1: Lump Sum

• Receive full $500,000 immediately
• Most common choice

Option 2: Alliance Account

• Money deposited into interest-bearing account
• Write checks as needed
• Earn interest while deciding what to do

Option 3: Annuity

• Receive monthly payments over 30 years
• Guarantees steady income
• Less flexible

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Common SGLI Mistakes

❌ Mistake #1: Never Updating Beneficiary

Reality: You marry, have kids, divorce, remarry. Beneficiary still lists ex-girlfriend from 10 years ago.

Fix: Update beneficiary after EVERY major life event.

❌ Mistake #2: Declining SGLI to "Save Money"

Reality: You save $32/month ($384/year). You die. Family gets $0.

Fix: Keep SGLI. It's the cheapest, most comprehensive life insurance you'll ever have.

❌ Mistake #3: Not Getting Spousal SGLI

Reality: Spouse dies. You have funeral costs ($10,000), no life insurance payout.

Fix: Get spousal SGLI ($100,000 for $6-$10/month). Worth it.

❌ Mistake #4: Not Converting SGLI to VGLI After Separation

Reality: You separate. SGLI ends 120 days later. You develop cancer. Can't get civilian insurance. No life insurance.

Fix: Convert to VGLI within 240 days of separation (no medical exam required).

❌ Mistake #5: Thinking SGLI Is Enough

Reality: You have spouse + 3 kids. $500,000 sounds like a lot, but after paying off house ($300,000), only $200,000 left for family.

Fix: Calculate actual needs. Get additional civilian term life if needed ($250,000-$500,000).

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Action Steps

This Week:

1. ✅ Log into myPay, verify beneficiary is correct
2. ✅ If not, update immediately
3. ✅ Review spouse/child coverage amounts

Annually:

1. ✅ Review beneficiary (especially after divorce, remarriage, births)
2. ✅ Verify deductions on LES (ensure SGLI is active)
3. ✅ Calculate if you need additional civilian coverage

Before Separation:

1. ✅ Decide: Convert to VGLI or get civilian term life?
2. ✅ If converting to VGLI, apply within 240 days
3. ✅ If not converting, get civilian policy BEFORE separation (while healthy)

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Verification & Sources

Official Sources:

• VA Office of Servicemembers' Group Life Insurance (OSGLI)
• SGLI Online Enrollment System (SOES)
• VA.gov/life-insurance

Last Updated: October 31, 2025

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Related Guides

• Civilian Life Insurance for Military Families
• Estate Planning for Service Members
• VA Survivor Benefits (DIC)

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Remember: SGLI is the best life insurance deal in America. $500,000 for $32/month, no medical exam, guaranteed approval. Keep it. Update your beneficiary. And if you have family, make sure they're protected.