Life insurance policies issued to military personnel come with unique rules and limitations that often differ from civilian coverage. While programs like Servicemembers’ Group Life Insurance (SGLI) and Veterans’ Group Life Insurance (VGLI) offer essential financial protection, they also carry strict stipulations. When these requirements are misunderstood or overlooked, it can result in denied claims—leaving families without the benefits their loved one intended for them.
If you're facing a military life insurance denial or delay, here's what you need to understand—and how a qualified attorney can help you fight back.
Overview of Military Life Insurance Coverage
The U.S. government offers special life insurance options for servicemembers and veterans:
SGLI (Servicemembers’ Group Life Insurance): Available to active-duty members of the Army, Navy, Air Force, Marines, Coast Guard, and certain Reserve and National Guard units.
VGLI (Veterans’ Group Life Insurance): A continuation of SGLI coverage after separation or retirement, as long as it’s converted within the allotted time frame—usually 120 days.
FSGLI (Family Servicemembers’ Group Life Insurance): Provides coverage for spouses and dependent children.
These policies are cost-effective but unforgiving if certain requirements are not strictly followed.
Common Stipulations That Can Trigger Claim Denials
To keep coverage valid, military life insurance policies come with several critical requirements:
1. Active-Duty Requirement
Coverage under SGLI is only active while the servicemember remains in the eligible category. If the individual separates from service and fails to convert to VGLI within the deadline, coverage lapses. This is one of the most common reasons claims are denied.
2. Missed Premiums
Monthly premiums for SGLI are deducted directly from military pay. But if there is an administrative error or the transition to VGLI is missed, unpaid premiums can result in policy lapse—often without the beneficiary realizing until a claim is denied.
3. Minimum Participation Period
If the servicemember cancels the policy too early or passes away shortly after enrollment, the insurer may challenge the payout based on insufficient coverage duration.
Top Reasons Military Life Insurance Claims Get Denied
Even when policies appear valid, insurers often cite specific grounds to justify denial:
Dishonorable Discharge: If the servicemember was dishonorably discharged before death, coverage under SGLI or VGLI may be voided.
Illegal or Immoral Conduct: Deaths resulting from desertion, mutiny, or misconduct (including some criminal acts) may fall under policy exclusions.
Expired or Improper Beneficiary Designation: Policies do not automatically update beneficiaries after divorce, remarriage, or new children. If an outdated beneficiary is still on file, disputes can arise—and sometimes result in denied payouts.
Missed VGLI Conversion Deadline: If the servicemember dies shortly after discharge without converting SGLI to VGLI, beneficiaries may be left without coverage—even if premiums were being paid elsewhere.
Can You Challenge a Military Life Insurance Denial?
Yes. Military life insurance claims can be appealed or contested—especially if:
The denial was based on a vague exclusion or unsupported claim of misconduct
The insurer failed to notify the servicemember properly of a lapse
The wrong beneficiary was paid due to outdated records
The policy was still within the SGLI-to-VGLI grace period
Why You Need a Life Insurance Lawyer
Navigating military insurance rules is not something most families are prepared for—especially while grieving. A seasoned life insurance attorney can:
Review the full policy and denial explanation
Identify administrative or procedural errors
Challenge wrongful claims of ineligibility
Enforce court orders or divorce decrees affecting beneficiary rights
Appeal directly to the Department of Veterans Affairs (VA) or the insurer
At our firm, we’ve handled hundreds of denied military life insurance claims and won cases involving everything from improper discharges to administrative mistakes in beneficiary designation.
Don’t Let a Technicality Deny You the Benefits You Deserve
Military life insurance was created to protect the families of those who serve. If your claim has been denied due to SGLI or VGLI technicalities, misconduct allegations, or a dispute over who should receive the benefits, don’t give up. You have rights—and legal support can make all the difference.
Contact us today for a free consultation. We’ll review your denial, explain your legal options, and help you recover the full policy amount owed to your family. If you need a Maine life insurance denial attorney call today.