How Much Will SGLI Increase By?
The maximum level of Servicemembers’ Group Life Insurance coverage will be increased from $250,000 to $400,000 on September 1, 2005.
Who Will Be Affected?
Anyone in service on September 1, 2005, will have their coverage increased to $400,000, even if they previously declined or elected lesser coverage. If they still desire no coverage or less than the maximum, they will have to go their Personnel Office and re-elect no coverage or less than the maximum.
What Coverage Amounts Will Be Available?
Servicemembers can only elect coverage in increments of $50,000. Previously, members could elect coverage in increments of $10,000.
Therefore, the only SGLI coverage amounts available will be:
· $50,000 · $250,000
· $100,000 · $300,000
· $150,000 · $350,000
· $200,000 · $400,000
How Will The Increase Affect VGLI members?
Members in the VGLI Program before September 1, 2005 will not be affected. However, all separating servicemembers covered under SGLI on or after September 1, 2005 in an amount greater than $250,000 will able to convert to VGLI at the new higher level. For example:
SGLI Coverage at Separation | Max VGLI Coverage |
$400,000 | $400,000 |
$350,000 | $350,000 |
How Much Will The Additional Coverage Cost?
The premium rates for SGLI coverage will remain the same. Currently, the rate is 6.5 cents per $1,000 per month, or $16.25 per month for $250,000. Therefore, if a member elects the new maximum coverage of $400,000, they will pay $26.00 per month.
Will Certain Servicemembers Receive Free Coverage?
SGLI members serving in areas or operations designated by the Secretary of Defense as combat operations or zones of combat will have the premiums for $150,000 of coverage paid for by the Department of Defense. This is only while they are serving in designated areas or operations. Once they are no longer serving in such an area they will once again have to pay the premiums themselves.
The examples in the table below show how the free coverage will work.
Coverage Elected By Member | Serving in Area or Operation Designated by DoD as Combat | Coverage Paid for by DoD | Claim Amount (If death occurs) |
$400,000 | Yes | $150,000 | $400,000 |
$50,000 | Yes | $150,000 | $200,000 |
$0 | Yes | $150,000 | $150,000 |
$0 | No | $0 | $0 |
$50,000 | No | $0 | $50,000 |
$400,000 | No | $0 | $400,000 |
Will The Increase Be Retroactive To A Specific Date?
Yes. The Department of Defense will be paying a death gratuity of $150,000 for deaths that occurred in specified combat conditions on or after October 7, 2001 but before September 1, 2005 or were incurred in the theater of operations of Operations Enduring and Iraqi Freedom. This gratuity is in addition to the existing Department of Defense death gratuity that is increasing from $12,420 to $100,000 for the same group of servicemembers.
Where Should I Go For More Information?
You are: | Type of Information You Need | Who To Contact |
Casualty Officer | Claims Assistance | Office of Servicemembers’ Group Life Insurance at 1-800-419-1473 |
Casualty Officer | Retroactive Death Gratuities | Your Branch of Service |
Military Service Coordinator | General Program Information/Application & Claim Assistance | VA Insurance Service Staff Greg Hosmer: 1-215-842-2000 x 4280 Kristan Hoffman: 1-215-842-2000 x 3094 |
Other Program Coordinator (e.g. OIF/OEF Coordinator) | General Program Information/Application & Claim Assistance | VA Insurance Service Staff Greg Hosmer: 1-215-842-2000 x 4280Kristan Hoffman: 1-215-842-2000 x 3094 |
VA Regional Office Staff | General Program Information/Application & Claim Assistance | VA Insurance Service Staff Greg Hosmer: 1-215-842-2000 x 4280 Kristan Hoffman: 1-215-842-2000 x 3094 |
Servicemember/Separating Servicemember | Payroll/Personnel Questions | Unit Commander |
Servicemember/Separating Servicemember | General Program Information/Application & Claim Assistance | Office of Servicemembers’ Group Life Insurance at 1-800-419-1473 |
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