Why Was My SGLI Claim Denied?

Servicemembers’ Group Life Insurance claims are most often denied because of beneficiary designation issues or administrative record problems rather than a true lack of coverage. Unlike private life insurance, SGLI is governed by federal law, and payment is controlled almost entirely by official military records.

A denial does not necessarily mean the benefits are lost. Many denied SGLI claims are resolved once records are reviewed and corrected.

How SGLI Claims Are Evaluated

SGLI benefits are paid according to the most recent valid beneficiary designation on file at the time of death. Federal law gives controlling weight to that designation, even when it conflicts with family expectations, divorce agreements, or wills.

Insurers reviewing SGLI claims focus primarily on military records, coverage status, and beneficiary documentation.

Beneficiary Designation Issues

The most common reason for SGLI claim denial involves disputes or confusion about the beneficiary.

Denials often arise when:

• A beneficiary designation is missing from the record
• An outdated form remains on file
• Multiple people claim to be entitled to the benefit
• A servicemember intended to change beneficiaries but the change was not properly recorded

Federal law generally enforces the designation on file, but administrative errors and incomplete records can make denials challengeable.

Missing or Incomplete Records

Some SGLI claims are denied because insurers assert that required forms were never submitted or were improperly completed.

Examples include:

• Beneficiary forms that were not uploaded to the service record
• Incomplete or improperly witnessed forms
• Clerical errors in military or VA record keeping

These cases often turn on reconstructing the servicemember’s intent and administrative history.

Coverage Status and Eligibility Disputes

Insurers may also deny SGLI claims by asserting that coverage was not in effect at the time of death.

This can involve claims that:

• Coverage lapsed after separation from service
• The servicemember failed to convert SGLI coverage after discharge
• Eligibility ended due to administrative timing issues

Many of these denials involve notice failures or record errors and can be challenged under federal law.

Are SGLI Claims Denied Based on Cause of Death?

SGLI has fewer exclusions than private life insurance policies. Most causes of death are covered. Denials based on cause of death are uncommon and usually tied to eligibility questions rather than exclusions.

When cause of death is cited, it should be carefully reviewed against federal SGLI rules.

Does a Denial Mean the SGLI Claim Is Over?

No. Many SGLI denials are not final determinations. They often reflect unresolved beneficiary disputes or incomplete administrative records.

Further review, correction of records, or legal intervention can result in payment of benefits.

What to Do After an SGLI Claim Is Denied

If your SGLI claim has been denied:

• Obtain the written denial explanation and claims file
• Request copies of all SGLI beneficiary designation forms
• Gather military service and personnel records
• Preserve all correspondence and documentation
• Avoid assumptions based on family expectations
• Seek guidance before responding to the denial

SGLI disputes often hinge on technical details and federal procedures.

Related Guidance

For more information about handling military life insurance disputes, see our Denied SGLI Claim page, and our Denied SGLI Claim Fact Sheet.

If a Servicemembers’ Group Life Insurance claim has been denied, it may still be possible to secure the benefit through proper review and action.

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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