Servicemember’s Group Life Insurance (SGLI) is a program of low cost group life insurance for Navy service members on Active Duty, Selected Reserves, members of the Commissioned Corps of the National Oceanic and Atmospheric Administration, and the Public Health Service. The maximum current SGLI coverage is $400,000, which is provided in $50,000 increments. SGLI premiums are currently $.065 per $1,000 of insurance, regardless of the member’s age. A Sailor may decline or elect less than maximum coverage. SGLI payments will be distributed to the designated beneficiaries, listed on the most current SGLI election form on file, in the Sailor’s service records.
Servicemember’s Group Life Insurance Traumatic Injury Protection (TSGLI) is a program that provides payment to Navy service members who are severely injured (on or off duty) as the result of a traumatic event and suffer a loss that qualifies for payments under TSGLI. TSGLI coverage is automatic for any service member covered under SGLI effective December 1, 2005. The premium for TSGLI is a flat rate of $1 per month for most service members. Members who carry the maximum SGLI coverage of $400,000 will pay a premium of $27.00 per month for both SGLI and TSGLI. TSGLI coverage will pay a benefit between $25,000 and $100,000 depending on the loss directly resulting from the traumatic injury. TSGLI payments are made to the service member, a person acting on their behalf if they are determined incompetent, or their SGLI beneficiary if they die.
Family Servicemember’s Group Life Insurance (FSGLI) is an extension of SGLI that covers spouses and dependent children of Navy service members insured under the SGLI program. FSGLI provides up to a maximum of $100,000 coverage for spouses and $10,000 for dependent children. Spouse coverage can be reduced or declined by the service member. Spouse coverage is provided in increments of $10,000. Child coverage cannot be declined or reduced and is free. Spouse premiums are based on the amount of coverage and the spouse’s age. FSGLI payments are made to the service member or their SGLI beneficiary if the service member dies before payment is made or is implicated in the death of the insured.
Dependency and Indemnity Compensation (DIC) is a program for surviving spouses and children. The dependents of service members who die on active duty (or veterans who die from service connected injuries and some 100% disabled veterans) receive monthly DIC payments(nontaxable) for the surviving spouse and additional funds for each surviving child. DIC is adjusted annually for inflation.
Death Gratuity payments totaling $100,000 will be made to designated beneficiaries to meet immediate cash needs in the event of the service member’s death while on Active Duty. Death Gratuity may be paid to 1 or up to 10 designated beneficiaries with 10 percent of $100,000 or $10,000 paid to each beneficiary.
Survivor Benefit Plan (SBP) is a program for surviving spouses and children. When a Navy retiree dies, their retirement pay stops. This means that the surviving spouse will be left without a substantial income source. Retirees should consider how they can protect their spouse from the hardships caused by the loss of retirement pay. One option that is available is the Survivor Benefit Plan. The SBP is an insurance plan that will pay the surviving spouse a monthly payment (annuity) to help make up for the loss of the retirement income. Similarly, if a sailor dies on active duty, active duty pay stops. However, if a sailor dies on active duty with 20 or more years of service, or in the line of duty with less than 20 years, the surviving spouse and children are automatically protected by SBP at no cost to the sailor.