- Servicemembers’ Group Life Insurance (SGLI) provides up to $500,000 in life insurance coverage automatically to most active duty servicemembers — at a cost of $0.06 per $1,000 of coverage per month
- SGLI also includes Traumatic Injury Protection (TSGLI) — a separate benefit that pays $25,000 to $100,000 for qualifying combat or non-combat traumatic injuries regardless of whether the servicemember dies
- Coverage ends 120 days after separation from the military — converting to VGLI or a private policy before that window closes is critical for veterans with health conditions that could make them uninsurable later
- Beneficiary designation on file with SGLI is independent of your will — whoever is named as beneficiary receives the death benefit regardless of what your will says
- Servicemembers can reduce coverage in $50,000 increments or decline it entirely, but restoring full coverage requires proof of good health if the servicemember is not in a combat zone
- Family SGLI (FSGLI) provides up to $100,000 of coverage on a spouse and $10,000 per dependent child — child coverage is free; spouse coverage is paid by the servicemember
- What Is SGLI
- Coverage Amounts and Premiums
- Traumatic Injury Protection (TSGLI)
- Family SGLI (FSGLI)
- Beneficiary Designation Rules
- Reducing or Declining Coverage
- What Happens When You Leave the Military
- SGLI vs. VGLI After Separation
- SGLI vs. Private Life Insurance
- How to Manage Your SGLI Coverage
- Frequently Asked Questions
Servicemembers’ Group Life Insurance is one of the first benefits a servicemember receives and one of the last they think carefully about. Enrollment is automatic, premiums are low, and coverage is generous — which makes it easy to treat SGLI as background noise rather than a financial planning tool worth understanding.
The details matter most at two moments: when naming beneficiaries (which many servicemembers do carelessly or not at all), and when leaving the military (when a 120-day window determines whether coverage continues or evaporates). This guide covers everything a servicemember and their family needs to know about SGLI — what it covers, what it costs, how to manage it, and what to do when service ends.
What Is SGLI
SGLI is a low-cost group life insurance program administered by the Department of Veterans Affairs and underwritten by Prudential Insurance Company of America under a federal contract. It is available to:
- Active duty members of the Army, Navy, Air Force, Marine Corps, Space Force, and Coast Guard
- Commissioned officers of the National Oceanic and Atmospheric Administration (NOAA) and the U.S. Public Health Service
- Cadets and midshipmen of the four service academies
- Members of the Ready Reserve and National Guard assigned to a unit with scheduled drills — at the same premium and coverage levels as active duty members
- Servicemembers on active duty for training (part-time coverage)
SGLI is not a savings or investment product — it is pure term life insurance. It pays the face amount to the designated beneficiary upon the servicemember’s death from any cause, anywhere in the world, including combat. There is no cash value, no dividends, and no investment component.
Coverage Amounts and Premiums
SGLI is available in $50,000 increments up to a maximum of $500,000. New servicemembers are automatically enrolled at the maximum $500,000 level unless they elect a lower amount or decline coverage entirely.
| Coverage Amount | Monthly Premium | Annual Cost |
|---|---|---|
| $500,000 | $30.00 | $360.00 |
| $450,000 | $27.00 | $324.00 |
| $400,000 | $24.00 | $288.00 |
| $350,000 | $21.00 | $252.00 |
| $300,000 | $18.00 | $216.00 |
| $250,000 | $15.00 | $180.00 |
| $200,000 | $12.00 | $144.00 |
| $150,000 | $9.00 | $108.00 |
| $100,000 | $6.00 | $72.00 |
| $50,000 | $3.00 | $36.00 |
The flat rate of $0.06 per $1,000 of coverage per month is the same for all servicemembers regardless of age, health status, branch of service, or duty assignment. A 19-year-old private pays the same rate as a 45-year-old colonel. This makes SGLI exceptionally inexpensive for older servicemembers who would pay significantly more for equivalent private coverage based on their age alone.
An additional $1.00 per month is automatically charged for Traumatic Injury Protection (TSGLI) coverage, which is included with all SGLI policies and cannot be declined separately (see TSGLI section below).
Traumatic Injury Protection (TSGLI)
TSGLI is a rider attached to every SGLI policy that provides a lump-sum payment to servicemembers who suffer a qualifying traumatic injury — regardless of whether they die. It was established in 2005 in response to the high rate of severe injuries among servicemembers in Iraq and Afghanistan and covers both combat and non-combat injuries.
TSGLI Payment Amounts
TSGLI pays between $25,000 and $100,000 depending on the nature and severity of the injury. Qualifying losses include:
| Type of Loss | TSGLI Payment |
|---|---|
| Loss of both hands, both feet, or sight in both eyes | $100,000 |
| Loss of one hand and one foot | $100,000 |
| Loss of one hand or one foot and sight in one eye | $100,000 |
| Loss of one hand or one foot | $50,000 |
| Loss of sight in one eye | $50,000 |
| Loss of hearing in both ears | $100,000 |
| Loss of speech | $50,000 |
| Quadriplegia | $100,000 |
| Paraplegia | $75,000 |
| Hemiplegia | $50,000 |
| Uniplegia | $25,000 |
| Facial reconstruction (severe burns or injuries) | $25,000–$75,000 |
| Coma from traumatic brain injury (TBI) — per day beyond 15 consecutive days | $25,000 |
| Activities of Daily Living (ADL) loss — inability to perform 2 of 6 ADLs for 30+ consecutive days | $25,000 |
TSGLI Eligibility and Filing
To qualify for TSGLI, the traumatic injury must have occurred while the servicemember was covered by SGLI. The injury must be the direct and proximate cause of the scheduled loss, and the loss must occur within 2 years of the traumatic event. TSGLI covers injuries from any cause — vehicle accidents, training accidents, falls, and non-combat injuries qualify alongside combat injuries.
TSGLI claims are filed through the servicemember’s branch of service using the SGLV 8600 form (Application for TSGLI Benefits). Each branch has its own TSGLI office that processes claims. Retroactive claims are available for injuries suffered during Operation Enduring Freedom or Operation Iraqi Freedom dating back to October 7, 2001, even if the servicemember has since separated.
Family SGLI (FSGLI)
Family Servicemembers’ Group Life Insurance (FSGLI) extends life insurance coverage to the spouse and dependent children of servicemembers who are covered by full-time SGLI.
Spouse Coverage
Spouse coverage under FSGLI is available in $10,000 increments up to a maximum of $100,000 — but cannot exceed the servicemember’s own SGLI coverage amount. Premiums for spouse coverage are paid by the servicemember and are based on the spouse’s age:
| Spouse Age | Monthly Premium per $10,000 of Coverage |
|---|---|
| Under 35 | $0.55 |
| 35–39 | $0.61 |
| 40–44 | $0.77 |
| 45–49 | $1.00 |
| 50–54 | $1.39 |
| 55–59 | $2.00 |
| 60 and over | $2.77 |
A servicemember whose spouse is under 35 pays $5.50 per month for the maximum $100,000 of spouse coverage — one of the most cost-effective life insurance options available for young military families. As with the servicemember’s own SGLI, spouse coverage ends when the servicemember separates from the military. The spouse can convert to an individual policy through Prudential within 120 days of the servicemember’s separation.
Dependent Child Coverage
Each dependent child of a servicemember covered by SGLI is automatically insured for $10,000 at no cost to the servicemember. Child coverage is free and automatic — there is no enrollment required and no premium charged. Coverage continues for dependent children until age 18, or until age 23 if the child is enrolled full-time in an approved school or training program. Children who are permanently incapacitated before reaching the age limit may retain coverage beyond those ages.
Beneficiary Designation Rules
The beneficiary designation on file with SGLI controls who receives the death benefit — not the servicemember’s will, not a verbal instruction, not a note left with family members. This is one of the most important administrative details a servicemember can manage, and one that is frequently neglected.
How Designation Works
Servicemembers designate beneficiaries using the SGLV 8286 form (Servicemembers’ Group Life Insurance Election and Certificate), submitted through their unit. Beneficiaries can be any person, entity, or trust — there is no requirement to name a spouse or family member. Multiple beneficiaries can be named with specified percentages. Primary and contingent (secondary) beneficiaries should both be designated.
If no beneficiary is on file, SGLI pays in the following order of precedence established by federal law:
- Widow or widower
- Children in equal shares (descendants of deceased children take their parent’s share)
- Parents in equal shares, or all to the surviving parent
- Executor or administrator of the estate
- Other next of kin under the laws of the state where the servicemember was domiciled
Keeping Beneficiaries Current
Life events that should trigger an immediate review and update of SGLI beneficiary designations:
- Marriage or divorce
- Birth or adoption of a child
- Death of a named beneficiary
- Significant change in relationship with a named beneficiary
- Change in estate planning — new will, trust, or financial power of attorney
A divorce does not automatically remove a former spouse as beneficiary on an SGLI policy. Federal law governs SGLI beneficiary designations, and a state divorce decree cannot override a valid federal beneficiary designation. Servicemembers who divorce and fail to update their SGLI designation risk the death benefit going to a former spouse rather than a current spouse or children.
Reducing or Declining Coverage
Servicemembers can reduce their SGLI coverage in $50,000 increments or decline coverage entirely by submitting the SGLV 8286 form. The most common reasons servicemembers reduce coverage are having significant outside life insurance already in place or single servicemembers with no dependents who feel the full coverage amount is unnecessary.
The risk in reducing or declining coverage is what happens if circumstances change. A servicemember who declines SGLI at age 22 and develops a serious health condition at age 28 may find that restoring full SGLI coverage requires proving good health — and that equivalent private coverage is now significantly more expensive or unavailable due to the health condition. Reinstating coverage to the maximum requires a statement of good health (SGLV 8285) unless the servicemember is in a combat zone, where coverage can be restored without a health statement.
For most servicemembers with dependents, maintaining the full $500,000 at $30 per month is one of the strongest financial value propositions available. The question of reducing or declining coverage is most reasonable for single, healthy servicemembers with no dependents who have specific reasons for wanting less coverage.
What Happens When You Leave the Military
SGLI coverage does not end on the day of separation — it continues for 120 days at no cost after the date of separation from active duty. After 120 days, coverage terminates entirely unless the servicemember has taken action to continue it.
During the 120-day window, separating servicemembers have two options:
Option 1 — Convert to VGLI
Veterans’ Group Life Insurance (VGLI) is the continuation program for SGLI. It allows veterans to convert their SGLI coverage to VGLI without proof of good health — regardless of any medical conditions developed during service — if they apply within 240 days of separation. During the first 120 days of separation, SGLI remains in effect. After 120 days and up to 240 days, SGLI has ended but VGLI conversion is still available without a health statement. After 240 days, conversion to VGLI requires proof of good health.
VGLI rates are significantly higher than SGLI because they are age-based and because the no-health-statement conversion option means the pool includes veterans with serious health conditions. For a complete breakdown of VGLI rates and when it makes sense versus private coverage, see the VGLI vs. Private Life Insurance Complete Guide.
Option 2 — Convert to Private Life Insurance
SGLI can also be converted to an individual policy with any of the private insurers participating in the SGLI conversion program — without proof of good health — within 120 days of separation. The converted policy is typically a permanent (whole life) policy rather than term, and the premiums reflect standard commercial rates for the veteran’s age. For healthy young veterans, private term life insurance purchased independently will almost always provide better coverage at lower cost than the SGLI conversion option with participating insurers.
The conversion to private insurance without a health statement is most valuable for veterans with health conditions that would otherwise make them uninsurable or result in rated (higher-premium) policies. For those veterans, locking in a conversion policy before the 120-day window closes may be the most important financial decision of their separation.
SGLI vs. VGLI After Separation
| Factor | SGLI | VGLI |
|---|---|---|
| Who it covers | Active duty and qualifying Reserve/Guard | Veterans post-separation |
| Maximum coverage | $500,000 | $500,000 |
| Premium basis | Flat rate — same for all ages | Age-based — increases at 5-year intervals |
| Health requirements | None — automatic enrollment | None if applied within 240 days; health statement required after 240 days |
| TSGLI included | Yes — $1/month | No |
| Family coverage | Yes — FSGLI for spouse and children | No — VGLI covers veteran only |
| Can increase coverage | No — $500,000 maximum | Yes — in $25,000 increments up to $500,000 without health statement, once every 5 years on birthday |
SGLI vs. Private Life Insurance
For servicemembers who want coverage beyond the $500,000 SGLI maximum, or who want to ensure coverage that survives separation without depending on VGLI, private life insurance purchased during service is an option worth considering.
The key considerations:
- SGLI cannot be exceeded while on active duty — private coverage supplements SGLI; it does not replace it during service
- Private term insurance for healthy young servicemembers is extremely affordable — a healthy 25-year-old can purchase a 20-year $500,000 term policy for $20–$30 per month, providing continued coverage after separation regardless of any future health changes
- War exclusions — most private life insurance policies include no war exclusion and pay regardless of cause of death, including combat. Verify any private policy’s exclusions before purchasing
- Deployment considerations — some private insurers restrict coverage or increase premiums for active duty members deployed to combat zones. Military-friendly insurers (USAA, Navy Federal, AAFMAA) typically do not include such restrictions
The best time to purchase supplemental private life insurance is early in a military career when health is typically good and premiums are lowest — not during separation when VGLI is the only no-health-statement option available.
How to Manage Your SGLI Coverage
SGLI is administered through the VA’s Office of Servicemembers’ Group Life Insurance. Servicemembers manage their coverage through their unit’s personnel office or through the SGLI Online Enrollment System (SOES) available through the milConnect portal at milConnect.
Key administrative actions and the forms required:
| Action | Form |
|---|---|
| Designate or change beneficiary | SGLV 8286 |
| Elect or change coverage amount | SGLV 8286 |
| Elect or change spouse FSGLI coverage | SGLV 8286A |
| Decline SGLI coverage | SGLV 8286 |
| Restore declined/reduced coverage (health statement) | SGLV 8285 |
| Apply for TSGLI benefits | SGLV 8600 |
| Convert SGLI to VGLI after separation | SGLV 8714 |
Servicemembers should review their SGLI beneficiary designation and coverage amount at every major life event and at a minimum annually during in-processing or benefits reviews. Many units conduct annual reviews of SGLI elections — use that opportunity to verify that beneficiaries are current and coverage reflects the servicemember’s actual needs.
Frequently Asked Questions
Yes. SGLI pays the full face amount for death from any cause, anywhere in the world, including combat. There is no war exclusion or combat exclusion in SGLI. The death benefit is paid to the designated beneficiary regardless of the circumstances of death — combat, training accident, illness, or off-duty causes. This is one of the significant advantages of SGLI over some private life insurance policies that may contain war or hazardous duty exclusions.
Yes. A trust can be named as the SGLI beneficiary. This is commonly used in military estate planning when a servicemember wants the death benefit to be managed by a trustee for minor children rather than paid directly to the children or to a guardian. To name a trust, the servicemember lists the trust name and date on the SGLV 8286 form. The trust document should be kept current and the trustee identified — the VA will pay the death benefit to the trust, which the trustee then manages per the trust terms. Consulting an estate planning attorney before naming a trust as beneficiary ensures the trust is structured correctly to receive a life insurance payout.
FSGLI spouse coverage ends automatically upon divorce — it is not transferable or continuable by the former spouse independently. The former spouse cannot convert the FSGLI coverage to an individual policy after the divorce. This means a spouse who relied on FSGLI for their own life insurance coverage needs to obtain independent coverage before or immediately after the divorce is finalized. Unlike the servicemember’s own SGLI, there is no conversion right for a former spouse when FSGLI terminates.
The SGLI death benefit paid to a beneficiary is generally not subject to federal income tax. Life insurance death benefits are excluded from gross income under federal tax law. However, if the death benefit is held by the insurance company and paid out with interest over time rather than as a lump sum, the interest portion is taxable. TSGLI payments for traumatic injuries are also not taxable income. Beneficiaries who receive the death benefit should consult a tax professional if the benefit is structured as anything other than a lump-sum payment.
Yes, with conditions. Members of the Ready Reserve and National Guard who are assigned to a unit and scheduled to perform at least 12 periods of inactive duty training per year are eligible for full-time SGLI coverage at the same rates as active duty members. Coverage is in effect at all times — not just during drills or active duty periods. Guard and Reserve members who are not in a qualifying unit assignment may not be eligible for full-time SGLI and should verify their coverage status through their unit’s personnel office.
Related Guides
- VGLI vs. Private Life Insurance — what changes after separation and how to choose
- Final Expense Insurance for Veterans — coverage options for end-of-life costs
- Life Insurance for Veterans: Complete Comparison — the full landscape of coverage options
- Surviving Spouse VA Benefits — benefits available to a surviving spouse beyond the life insurance payout
This article is provided by MilitaryBenefitGuide.com, an independent educational resource. We are not affiliated with the Department of Veterans Affairs, Department of Defense, or any government agency. For official benefit information, please visit VA.gov or contact your local VA office.