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What Is SGLI and Who Qualifies?
Servicemembers' Group Life Insurance (SGLI) is a low-cost group term life insurance program administered by the U.S. Department of Veterans Affairs (VA). It automatically provides up to $500,000 in coverage to eligible military members from the very first day of service — no medical exam, no health questions, no underwriting required.
SGLI is available to the following groups:
- Active duty members of the Army, Navy, Air Force, Space Force, Marines, and Coast Guard
- Ready Reserve and National Guard members assigned to a unit with required drills
- Cadets and midshipmen at U.S. military academies
- ROTC members during authorized training
- Commissioned officers of NOAA and the U.S. Public Health Service
Both full-time and part-time SGLI coverage exist. Reservists and National Guard members who don't qualify for full-time coverage may still be eligible for part-time coverage during active duty or inactive duty training periods.
SGLI also includes a built-in Traumatic Injury Protection (TSGLI) rider at no added cost beyond $1/month, providing between $25,000 and $100,000 in short-term financial support for severe qualifying injuries such as limb loss, blindness, or other traumatic events.
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SGLI Costs, Coverage Amounts & Family Coverage
Current SGLI Premium Rates (Effective July 1, 2025)
The VA reduced SGLI premiums effective July 1, 2025, dropping the rate from $0.06 to $0.05 per $1,000 of coverage. This reduction was automatic — no action was required by service members.
Coverage is available in $50,000 increments from $50,000 up to the maximum of $500,000. Here's what you'll pay per month at each level:
| Coverage Amount | SGLI Premium | TSGLI Add-On | Total Monthly |
|---|---|---|---|
| $500,000 | $25.00 | $1.00 | $26.00 |
| $400,000 | $20.00 | $1.00 | $21.00 |
| $300,000 | $15.00 | $1.00 | $16.00 |
| $200,000 | $10.00 | $1.00 | $11.00 |
| $100,000 | $5.00 | $1.00 | $6.00 |
| $50,000 | $2.50 | $1.00 | $3.50 |
For just $26/month, a service member secures half a million dollars in life insurance — a rate that is nearly impossible to match in the civilian market, especially without a medical exam.
Family SGLI (FSGLI)
SGLI also extends to your family through the Family Servicemembers' Group Life Insurance (FSGLI) program:
- Spouse coverage: Up to $100,000 in $10,000 increments (cannot exceed the member's SGLI amount). Premiums vary by age and also received a discount effective July 2025.
- Dependent children: Automatically covered for $10,000 at no additional cost.
What SGLI Covers — and What It Doesn't
What SGLI Covers
SGLI provides one of the broadest life insurance protections available. Unlike many private policies, SGLI does not contain exclusion clauses for:
- Pre-existing medical conditions
- War or combat deaths
- Suicide (covered after the first day of coverage)
- Training accidents or hazardous duty
- High-risk military activities
This means your family is protected whether you pass away at home, during a deployment, or in combat. SGLI pays the full benefit tax-free to your designated beneficiary, regardless of how you died.
What SGLI Does NOT Cover
SGLI exclusions are extremely narrow and defined strictly by federal statute. Benefits are denied only in these rare circumstances:
Claim denials are uncommon and typically relate to the member's military status at the time of death (such as being AWOL), not the cause of death itself.
SGLI After Leaving the Military & the VGLI Conversion Process
How Long Does SGLI Last After Separation?
When you leave the military — whether through discharge, retirement, or separation — your SGLI coverage does not immediately disappear. Here's what happens:
- 120-day free extension: Full SGLI coverage continues for 120 days after your separation date at no cost.
- Totally disabled extension: If you are rated totally disabled at the time of separation, your coverage can be extended up to 2 years at no cost. You'll receive a notice approximately 20 months after separation offering a VGLI conversion option.
After these periods end, you must either convert to VGLI or obtain private life insurance — or risk going uninsured.
Converting SGLI to Veterans' Group Life Insurance (VGLI)
VGLI is the VA-administered continuation of your life insurance coverage after military service. Here's a breakdown of the key conversion windows:
| Timeframe After Separation | What's Required |
|---|---|
| 0–120 days | No medical exam or health questions required |
| 121–240 days | Still no medical exam required — apply ASAP |
| 241 days – 1 year 120 days | Medical underwriting / evidence of good health required |
| After 1 year + 120 days | Conversion window is permanently closed |
You can apply for VGLI online through the VA's portal or by mail using Form SGLV 8714. You'll typically need your DD Form 214 and any prior SGLI documentation. Coverage amounts can match or be lower than your previous SGLI amount (up to $500,000), and VGLI coverage can be maintained as long as premiums are paid.
SGLI vs. VGLI: How Do the Rates Compare?
The biggest downside to VGLI is that premiums are age-based and increase every five years, unlike SGLI's flat rate structure. Here's a comparison of VGLI monthly costs for $500,000 in coverage across age brackets:
| Age Bracket | VGLI Monthly Cost ($500K) |
|---|---|
| Under 29 | ~$17.50 |
| 30–34 | ~$22.50 |
| 35–39 | ~$32.50 |
| 40–44 | ~$52.50 |
| 50–54 | ~$122.50 |
| 60–64 | ~$317.50 |
While VGLI remains valuable for veterans who may have service-related health conditions that would make private insurance expensive or unavailable, it becomes significantly more costly as you age compared to a private level-term life insurance policy locked in during your younger years.
Should You Supplement SGLI With Private Life Insurance?
SGLI is an outstanding benefit while you're serving — but it has real limitations. Here's when it makes sense to look at additional coverage:
Military financial advisors consistently recommend locking in a private term or permanent life insurance policy while you are still young and healthy, because those premiums are significantly lower than what you'd face after separation. Once you leave the service, your ability to get affordable coverage may be affected by service-related health conditions.
SGLI Beneficiary Designation Rules
Managing your SGLI beneficiary is just as important as having the coverage itself. Here are the rules you need to know:
- Designate through SOES: Full-time SGLI members must use the Servicemembers' Online Enrollment System (SOES) to make or change beneficiary designations. Paper form SGLV 8286 is only permitted in emergencies.
- Anyone can be named: There are no restrictions on who you name — spouse, child, parent, sibling, or a non-family member.
- Update after life events: Marriage, divorce, or the birth of a child are all critical times to review and update your designation.
- Default "By Law" order: If no designation is on file, benefits are distributed in a statutory order: spouse → children → parents → siblings → estate.
- Spousal notification: If you change your beneficiary away from your spouse or reduce/decline coverage, you must notify them in writing.
Frequently Asked Questions About SGLI
Does SGLI cover suicide?
Yes. SGLI covers suicide, unlike many private life insurance policies that contain a suicide exclusion clause for the first two years of the policy. As long as the service member is eligible and enrolled, SGLI pays the full death benefit to the designated beneficiary regardless of the cause of death — including suicide. This is one of the most important distinctions between SGLI and civilian life insurance options.
What happens to SGLI after retirement?
When a service member retires, their SGLI coverage continues for a free 120-day period. After those 120 days, the coverage ends unless they convert to VGLI. Retirees should apply for VGLI as early as possible — ideally within 240 days of retirement — to secure guaranteed acceptance without a medical exam. If you wait beyond one year and 120 days, the conversion window closes permanently.
Can National Guard and Reserve members get SGLI?
Yes. National Guard and Reserve members are eligible for full-time SGLI coverage if they are assigned to a unit and meet training participation requirements. Those who do not qualify for full-time coverage may still be eligible for part-time coverage during periods of active duty, inactive duty training, or travel directly to and from such duty.
Is VGLI worth it compared to private life insurance?
It depends on your health and age at separation. VGLI offers the key advantage of guaranteed acceptance within 240 days with no medical exam — a critical benefit for veterans with service-connected conditions. However, VGLI premiums rise every five years and can become quite expensive in your 40s and 50s. Veterans who are in good health may find better long-term value by securing a level-premium private term policy instead of or in addition to VGLI.
What is the SGLI death benefit and is it taxable?
The SGLI death benefit is the full coverage amount chosen by the service member, up to $500,000. This benefit is paid tax-free directly to the designated beneficiary in a lump sum. In addition to the SGLI payout, families of service members who die on active duty may also receive the Service Death Gratuity — a separate $100,000 payment — which is also tax-free.