Servicemembers Group Life Insurance (SGLI)

Servicemembers Group Life Insurance is the life insurance provided to those who serve in the military. The coverage can also be extended to dependents. SGLI is a very affordable program that is available to active duty as well as National Guard. The cost for servicemembers is $.065 per every $1,000 in coverage. For those serving, coverage is available in $50,000 increments up to a maximum of $400,000.

Unlike other civilian life insurance programs, SGLI is not dependent on a medical screening and the rates are the same regardless of the servicemember’s age. It is guaranteed life insurance coverage while the person serves in the military. Once he retires or separates from service, he is eligible to convert that to VGLI or Veterans Group Life Insurance.

Spouses of those covered by SGLI are also eligible for life insurance coverage. The program for spouses is slightly different than the one for those who serve. Spouses can have a maximum of $100,000 in coverage in increments of $10,000. However, the spouse cannot have more life insurance coverage than the military member has under SGLI. Spouse coverage is not based on a medical exam or medical history but is based on age. For spouses who are under the age of 35, $100,000 coverage is available for just $5 per month. Rates go up as age increases.

Each dependent child of the servicemember covered under SGLI is automatically covered for $10,000 in life insurance at no charge. Additional coverage for dependent children is not available through SGLI. Also, if both parents serve, the coverage doesn’t double — it is still only available at the maximum level of $10,000 per child.

When the servicemember enters the military, he will complete the necessary paperwork. Premiums will be automatically deducted from his paycheck on a monthly basis for the servicemember and spouse coverage.