Service Member's Group Life Insurance (SGLI)

SGLI is a low cost program of group term lifetiming of premium payments. Variable Life policies
insurance available automatically to all serviceallow the money that remains after payment of
members on active duty or inactive duty for trainingpremiums to be invested. Variable life insurance does
and members of the Military Reserves. These policieshave the option of a minimum guaranteed death
are automatically activated for the current maximumbenefit; however, variable life insurance can be
coverage amount of $250,000 dollars, unless a soldierexpensive and somewhat risky, depending on the
or sailor opts out in writing. A member of the servicedifferent type of investments made.
can elect lower coverage or no coverage at all byWhole Life policies provide lifetime protection at a
completing VA Form SGLV-8286. Term Life Insurancestandardized, level premium. Premiums must generally
coverage is available for spouses as well; dependentbe continued to be paid for as long as the policy is in
children are automatically insured for $10,000 dollars.force.
In addition, there is an additional elected coverageThe Free Look Period:
option for up to $100,000 for a spouse.It is important to review any life insurance policy
When discharged from active duty or the Reserve,immediately upon receipt. In most states, a minimum
members with full-time SGLI coverage can moveten day "free look" period is provided, during which
their coverage to the Veterans Group Life Insurancetime you may return the policy for cancellation and a
program (VGLI) or to an individual commercial termcomplete refund of any premium (paid should you
life insurance policy at the usual rates without havingdecide to back out. If you decide to cancel the life
to provide any proof of good health. For moreinsurance policy, remember to cancel the allotment
information, you call toll free (800)from your pay, if you set it up. If you suspect you
419-1473 or visit the on the web.are going to be deployed, you should inform the
Types of Life Insurance Available:person with your power of attorney to look out for
Term Insurance - Life insurance providing a fixedthe policy.
amount of coverage at a specified premium for aBefore you sign on the dotted line, ask:
specified duration of time. This type of insuranceDo I need more life insurance?
does not accumulate cash value and the premiumAre there any war exclusions in the policy? (SGLI
usually increases after the pre-determined timedoes not contain this exclusion.)
period.Can I afford this term life insurance policy? It may be
Permanent Insurance - The life insurance known asvery costly if you decide to cancel during the first
Permanent insurance provides longer term financialfew years of a policy.
protection with a death benefit and in some cases aAm I feeling like I am being pressured into buying this
cash savings component. Universal Life policies offerpolicy?
flexible premiums, it is a type of life insurance policyAre there any exclusions on the life insurance policy
under which the policy owner may change the deathfor travel on any non-commercial aircraft?
benefit from time to time (with satisfactory evidenceOnly when you feel comfortable should you proceed.
of insurability for increases) and vary the amount or