Denied SGLI (Servicemembers' Group Life Insurance) Claims

If your Servicemembers’ Group Life Insurance (SGLI) claim was denied, you are not alone. Every year, beneficiaries are forced to challenge denied military life insurance claims, often during times of grief. At Lassen Law Firm, we exclusively represent beneficiaries in denied life insurance cases nationwide, including SGLI denials. Christian Lassen, Esq., a life insurance attorney with over 20 years of experience, personally handles each case with the respect and urgency it deserves.

If an SGLI claim is denied, the beneficiary has the right to appeal, demand a full explanation, and, if necessary, sue for the benefits owed under federal law. Insurers must justify denials based on clear policy terms and evidence.

What Is SGLI (Servicemembers' Group Life Insurance)?

SGLI is a group life insurance program offered to active duty servicemembers, reservists, and certain veterans. Managed by the Department of Veterans Affairs (VA) but administered through private insurance companies, SGLI provides up to $500,000 in life insurance coverage. Beneficiaries designated by the servicemember are entitled to claim benefits upon the insured’s death, subject to policy rules and conditions.

Why SGLI Claims Get Denied

SGLI claims are denied for several reasons, including alleged failure to complete or update beneficiary designations, lapses in coverage after discharge, accusations of fraud or misrepresentation, or disputed causes of death. Some denials are based on paperwork mistakes made by the military, the VA, or the insurance administrator.

Fortunately, SGLI denials can often be challenged successfully with experienced legal help.

How We Help With Denied SGLI Claims

At Lassen Law Firm, we investigate the insurer’s denial thoroughly, request full disclosure of all military and insurance records, and appeal improper decisions aggressively. We are familiar with the VA and insurance administrator procedures for SGLI claims and litigate when necessary to enforce beneficiary rights.

For example, we recently helped a family recover $400,000 in SGLI benefits after an insurer wrongfully claimed the servicemember had no valid coverage due to administrative error. Through legal action, we secured full payment plus interest.

Common Reasons for SGLI Denials

• Failure to timely convert SGLI to VGLI after discharge

• Alleged non-coverage at the time of death

• Disputes over valid beneficiary designation

• Clerical errors in military or insurance records

• Misrepresentation or fraud allegations

• Death ruled outside the scope of covered service

• Failure to submit proper proof of loss

• Disputed cause of death exclusions (e.g., felony participation)

• VA administrative processing errors

• Claims denied based on incomplete paperwork

What to Do After a Denied SGLI Claim

If your SGLI claim has been denied:

1. Request a detailed denial letter and complete claims file immediately.

2. Gather the servicemember’s military records, SGLI elections, and death certificate.

3. Avoid communicating with the insurer without legal advice.

4. Contact an experienced SGLI attorney immediately.

5. Act quickly — certain appeal rights and filing deadlines are very strict under federal law.

Prompt legal action increases the chances of recovering full benefits.

Frequently Asked Questions About Denied SGLI Claims

What is SGLI?

Servicemembers' Group Life Insurance (SGLI) provides up to $500,000 of life insurance coverage for active duty military members, reservists, and eligible veterans.

Can SGLI claims be denied after discharge?

Yes. If coverage was not properly converted to Veterans Group Life Insurance (VGLI), insurers may attempt to deny claims, although conversion mistakes can often be challenged.

What happens if no beneficiary was designated?

If no valid beneficiary was named, SGLI benefits are distributed according to statutory order under federal law, starting with the spouse, then children, then parents.

Can administrative errors cause SGLI claim denials?

Yes. Clerical mistakes by military personnel offices or insurers can result in wrongful denials, which may be legally challenged.

Does the VA handle SGLI claim disputes?

The VA oversees the SGLI program but private insurers administer claims. Disputes often involve appealing insurer decisions and, if necessary, filing suit in federal court.

What if death occurred while committing a felony?

SGLI policies generally exclude deaths occurring during commission of a felony. Insurers must prove the exclusion clearly applies.

Are suicide deaths covered by SGLI?

Yes, unless the suicide occurred during the first two years of coverage — a standard contestability period common in life insurance.

Can an SGLI claim be denied for intoxication?

SGLI policies typically do not exclude accidental deaths involving intoxication unless specific evidence supports applying an exclusion.

What if the VA record shows no coverage?

Errors in VA or military records can be challenged through legal action to restore SGLI benefits if evidence supports coverage.

Can an SGLI claim be denied for missing paperwork?

Yes. Missing forms or incomplete proof of death can delay or deny payment until corrected — but wrongful denials can be challenged.

Does ERISA apply to SGLI claims?

No. SGLI is governed by federal law (38 U.S.C. § 1965 et seq.), not ERISA, because it is a military program, not an employee benefit.

How long does it take to resolve a denied SGLI claim?

Most cases resolve within a few months after aggressive appeals or legal action. Complex cases may take longer if VA or military records need correction.

Can I sue over a denied SGLI claim?

Yes. If appeals fail, you can sue the insurer or administrator responsible for wrongfully denying SGLI benefits.

How can a lawyer help with a denied SGLI claim?

An attorney ensures all records are gathered, appeals deadlines are met, wrongful denials are challenged, and lawsuits are filed if necessary.

Is there a time limit to appeal a denied SGLI claim?

Yes. Strict time limits apply to appeals and lawsuits involving SGLI — missing a deadline can permanently bar recovery.

Does remarriage affect SGLI beneficiaries?

No. Once a servicemember designates a beneficiary, remarriage does not automatically change the designation.

What if multiple people claim SGLI benefits?

The insurer may file an interpleader action, asking a court to decide who is entitled to the proceeds based on law and facts.

Can coverage be retroactively restored if wrongly terminated?

Yes. Courts can order reinstatement of SGLI coverage if wrongful termination or administrative mistakes are proven.

Are death benefits taxable for SGLI claims?

No. SGLI death benefits are typically not taxable to beneficiaries under current federal law.