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, you are not alone. SGLI denials often occur after the death of a servicemember, leaving families forced to fight for benefits during an already devastating time. Unlike private life insurance, SGLI claims follow unique federal rules, and denials are frequently based on administrative mistakes rather than 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
SGLI 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 administration is handled by private insurers.
The most important aspect of SGLI coverage is the beneficiary designation. Federal law gives servicemembers the right to name any beneficiary they choose, and that designation generally controls payment regardless of state law or family expectations. Many denials arise when beneficiary records are missing, outdated, or mishandled by military or administrative personnel.
Why SGLI Claims Are Denied
SGLI claims are commonly denied due to administrative or record keeping errors. Insurers may claim there was no valid coverage at the time of death, that the beneficiary designation was invalid, or that coverage lapsed after discharge.
Other denials involve alleged fraud, misrepresentation, or disputes about the cause of death. In some cases, insurers deny claims because the servicemember failed to convert SGLI coverage to Veterans’ Group Life Insurance after separation, even when notice of conversion rights was not properly provided.
These denials are often legally challengeable.
How We Challenge Denied SGLI Claims
At Lassen Law Firm, we investigate SGLI denials by obtaining the complete military personnel file, SGLI election forms, beneficiary records, and the insurer’s full claim file. We identify administrative failures, notice violations, and unsupported conclusions.
When necessary, we pursue appeals and federal litigation to enforce beneficiary rights. SGLI claims are governed by federal law, and insurers can be compelled to pay when denials are not supported by the record.
In one recent case, we helped a family recover $400,000 in SGLI benefits after an insurer claimed the servicemember lacked valid coverage due to administrative error. Through legal action, we established coverage and secured full payment plus interest.
Common Reasons SGLI Claims Are Denied
• Alleged lack of coverage at time of death
• Failure to properly record beneficiary designations
• Clerical errors in military or VA records
• Disputes over beneficiary validity
• Failure to convert SGLI to VGLI after discharge
• Allegations of fraud or misrepresentation
• Cause of death exclusions cited improperly
• Missing or disputed proof of loss
• VA or insurer processing errors
• Claims denied due to incomplete documentation
What To Do After a Denied SGLI Claim
If your SGLI claim has been denied:
- Request the full denial letter and claims file immediately
- Gather military records, SGLI election forms, and death certificate
- Avoid direct communication with the insurer without legal guidance
- Contact an attorney experienced with SGLI denials promptly
- Act quickly, as federal deadlines can be strict
- Early legal involvement significantly improves the likelihood of recovery.
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
Frequently Asked Questions About Denied SGLI Claims
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Servicemembers' Group Life Insurance (SGLI) provides up to $500,000 of life insurance coverage for active duty military members, reservists, and eligible veterans.
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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.
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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.
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Yes. Clerical mistakes by military personnel offices or insurers can result in wrongful denials, which may be legally challenged.
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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.
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SGLI policies generally exclude deaths occurring during commission of a felony. Insurers must prove the exclusion clearly applies.
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Yes, unless the suicide occurred during the first two years of coverage — a standard contestability period common in life insurance.
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SGLI policies typically do not exclude accidental deaths involving intoxication unless specific evidence supports applying an exclusion.
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Errors in VA or military records can be challenged through legal action to restore SGLI benefits if evidence supports coverage.
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Yes. Missing forms or incomplete proof of death can delay or deny payment until corrected — but wrongful denials can be challenged.
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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.
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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.
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Yes. If appeals fail, you can sue the insurer or administrator responsible for wrongfully denying SGLI benefits.
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An attorney ensures all records are gathered, appeals deadlines are met, wrongful denials are challenged, and lawsuits are filed if necessary.
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Yes. Strict time limits apply to appeals and lawsuits involving SGLI — missing a deadline can permanently bar recovery.
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No. Once a servicemember designates a beneficiary, remarriage does not automatically change the designation.
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The insurer may file an interpleader action, asking a court to decide who is entitled to the proceeds based on law and facts.
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Yes. Courts can order reinstatement of SGLI coverage if wrongful termination or administrative mistakes are proven.
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No. SGLI death benefits are typically not taxable to beneficiaries under current federal law.
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“The insurer said there was a misstatement in the application and flat-out denied the claim. I contacted the Lassen Law Firm, and they immediately launched a legal challenge. In the end, they got the full benefit paid without me even stepping into a courtroom.”- Karen D.
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