Servicemembers' Group Life Insurance (SGLI)
Servicemembers’ Group Life Insurance (SGLI) provides life insurance coverage up to a maximum of $400,000 for soldiers on active duty, ready reserves, National Guard, Reserve Officer Training Corps, as well as cadets attending a service academy.
SGLI Coverage
Servicemembers’ Group Life Insurance coverage is available in $50,000 increments up to a maximum SGLI insurance coverage of $400,000. Soldiers are automatically enrolled for the maximum coverage of $400,000 but can choose to decrease coverage in $50,000 increments or even cancel it entirely.
The SGLI also covers traumatic injury protection (known as Traumatic Servicemembers’ Group Life Insurance or TSGLI) which provides an additional coverage of $25,000 to $100,000 depending on severity of injury.
SGLI Cost / Premiums
The premiums for SGLI are very low cost at $0.065 for every $1,000 of insurance coverage. This is a recent change that came into effect on July 1, 2008 (the old SGLI premium rate was $0.07 per $1,000 of coverage). Premiums are set at this rate for all servicemembers regardless of age. Traumatic Servicemembers’ Group Life Insurance (TSGLI) is an additional $1 per month.
SGLI Monthly Premium Rates
For the maximum coverage of $400,000, the monthly premium is $27.00 which includes the standard SGLI monthly premium of $26.00 plus the TSGLI premium of a $1 per month. Each reduction of $50,000 in coverage reduces the monthly premium by $3.25/month.
Keep Your SGLI After Military Service!
A wonderful benefit of the SGLI is that it stays with you after military service. Servicemembers can choose to convert their SGLI coverage to term insurance via the Veteran’s Group Life Insurance program (VGLI) or by converting their SGLI into a permanent insurance plan with a participating commercial insurance company.
Article Last Modified: September 14, 2010
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