Denied SGLI (Servicemembers' Group Life Insurance) Claims

Christian Lassen, Esq. | Quoted in The Wall Street Journal | 25 Years Experience

If your Servicemembers’ Group Life Insurance claim was denied, the denial is governed by federal law, not state insurance rules. SGLI denials often occur after the death of a servicemember and are frequently based on administrative mistakes, missing records, or misapplication of federal requirements rather than a true lack of coverage.

At Lassen Law Firm, we represent beneficiaries nationwide in denied life insurance claims, including complex SGLI denials. Christian Lassen, Esq., has 25 years of experience handling life insurance disputes and personally manages each SGLI case to ensure military families receive the benefits they are entitled to under federal law.

Understanding SGLI Coverage and Beneficiary Rights

Servicemembers’ Group Life Insurance is a federal group life insurance program available to active duty servicemembers, reservists, and certain members of the National Guard. Coverage generally provides up to $500,000 in life insurance benefits. Although the program is overseen by the Department of Veterans Affairs, claims are administered through private insurers under federal regulations.

Beneficiary designation is the most important factor in SGLI claims. Federal law gives servicemembers broad authority to name any beneficiary they choose, and the designation on file generally controls payment regardless of state law, divorce decrees, or family expectations. Many SGLI denials arise when beneficiary records are missing, outdated, or improperly recorded by military or administrative personnel.

Why SGLI Life Insurance Claims Are Denied

Most SGLI denials stem from administrative or recordkeeping errors rather than intentional misconduct. Insurers may claim there was no valid coverage at the time of death, that the beneficiary designation was invalid, or that coverage terminated after separation from service.

Other denials involve alleged failure to convert SGLI coverage to Veterans’ Group Life Insurance after discharge, disputes regarding beneficiary eligibility, or misinterpretation of federal forms and military records. In some cases, insurers deny claims based on alleged fraud or cause of death issues that are not supported by the record.

Many SGLI denials can be challenged successfully once federal requirements and administrative duties are examined closely.

Common Reasons SGLI Claims Are Denied

Denied SGLI claims often involve one or more of the following issues:

• Alleged lack of coverage at the time of death
• Failure to properly record or process beneficiary designations
• Clerical or administrative errors in military or VA records
• Disputes over beneficiary validity
• Failure to convert SGLI to VGLI after discharge
• Allegations of fraud or misrepresentation
• Improper reliance on cause of death exclusions
• Missing or disputed proof of loss
• VA or insurer processing failures
• Claims denied due to incomplete documentation

Each denial must be evaluated under federal law and military records.

How We Challenge Denied SGLI Claims

We challenge SGLI denials by obtaining and reviewing the complete military personnel file, SGLI election forms, beneficiary designation records, and the insurer’s full claims file. We identify administrative failures, notice violations, and unsupported conclusions that violate federal requirements.

When necessary, we pursue administrative appeals and federal litigation to enforce beneficiary rights. Federal courts have authority to compel payment of SGLI benefits when denials are not supported by the evidence or governing law.

Behind the Scenes How SGLI Denials Are Actually Resolved

Most SGLI disputes are resolved by correcting administrative records rather than litigating intent. Success often depends on reconciling military personnel files, election forms, and insurer records.

SGLI denials commonly resolve through:

• Correction of military or VA records
• Enforcement of beneficiary designations under federal law
• Proof of coverage continuation at the time of death
• Federal court actions compelling payment

Because state law remedies do not apply, precision and documentation are critical.

What To Do After a Denied SGLI Claim

If your SGLI claim has been denied, prompt and careful action is essential.

You should request the full denial letter and claims file immediately, gather military records, SGLI election forms, and the death certificate, avoid direct communication with the insurer without legal guidance, and contact an attorney experienced with SGLI denials as soon as possible.

Federal deadlines can be strict, and errors during the appeal process can permanently bar recovery even when benefits are owed.

For a concise overview of SGLI denials and next steps, see our Denied SGLI Claim Fact Sheet.

See Our Denied SGLI Claim Fact Sheet

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Written & Reviewed by Christian Lassen, Esq., Nationally recognized life insurance lawyer: 25 years experience, hundreds of millions recovered.  Quoted in The Wall Street Journal ( May 17, 2025).

Last reviewed: Jan 3, 2026 | Contact 800-330-2274