Servicemembers’ Group Life Insurance (SGLI) is a low-cost, government-backed life insurance policy that provides financial protection to active-duty military members and their families. While it offers essential coverage, many service members and beneficiaries are unaware of how it works, how to make changes to the policy, or what happens when it comes time to file a claim. Worse, when a claim is denied, families often feel blindsided and overwhelmed.
This guide breaks down key SGLI features, eligibility, coverage details, and what beneficiaries can do if a claim is wrongfully denied.
What Is SGLI?
SGLI is a term life insurance policy automatically provided to most active-duty service members. It offers up to $400,000 in coverage and is managed by the Department of Veterans Affairs through a private carrier. Unlike civilian life insurance, there’s no underwriting process—coverage is guaranteed as long as the service member remains eligible.
Key Features of SGLI:
Automatic enrollment for eligible service members
Maximum coverage of $400,000 (can be reduced in $50,000 increments)
Monthly premiums deducted directly from pay
Optional coverage for spouses and dependent children (Family SGLI)
Beneficiary can be changed at any time
No health questions or medical exams required
Who Is Eligible for SGLI Coverage?
Eligibility for SGLI extends to a broad range of military personnel and select federal service members:
Active duty members of the Army, Navy, Air Force, Marine Corps, and Coast Guard
Cadets and midshipmen at service academies
ROTC members in authorized training
Commissioned officers of the NOAA and U.S. Public Health Service
Members of the Ready Reserve or National Guard (with qualifying training)
Certain IRR (Individual Ready Reserve) volunteers in mobilization categories
Once eligible, coverage begins automatically unless the service member actively declines or adjusts it.
How Much Coverage Is Provided?
SGLI coverage defaults to the maximum $400,000 unless the service member opts to reduce it. Reductions can be made in $50,000 increments. The cost of SGLI coverage is low compared to private life insurance:
Current Premium: $0.06 per $1,000 of coverage
Example: Full $400,000 coverage costs only $24/month
Family coverage through FSGLI is optional and carries separate premiums based on the spouse’s age.
What Happens After Separation from the Military?
Coverage doesn’t end immediately upon discharge or retirement. SGLI remains in effect for 120 days after separation—giving the insured time to obtain private coverage or convert to a Veterans’ Group Life Insurance (VGLI) policy without a health exam.
Extensions and Conversion:
Conversion to VGLI: Must be done within 240 days post-separation (health exam not required in first 240 days)
Disability Extension: SGLI can be extended for up to 2 years if the service member is totally disabled at the time of separation
Failure to convert within this window means coverage ends permanently, and beneficiaries may not receive any payout.
What Beneficiaries Should Know About SGLI Claims
If you are the beneficiary of an SGLI policy, you have the legal right to collect the full amount of the death benefit. However, SGLI claims can be denied for several reasons, including:
Disputes over military status at time of death
Issues related to the insured’s conversion to VGLI
Lapsed coverage due to administrative or pay system errors
Contested beneficiary designations (e.g., ex-spouse vs. current spouse)
When a loved one passes away, the last thing you should be dealing with is an insurance company claiming the policy is invalid. If your SGLI claim is denied, don’t accept the decision without consulting a life insurance lawyer.
Why You May Need a Life Insurance Attorney
SGLI is governed by federal law, and any claim denial should be reviewed by an attorney experienced in military life insurance litigation. Our firm has successfully overturned SGLI denials involving:
Unrecognized beneficiary changes
Alleged coverage lapses during transitions to VGLI
Delayed death notifications that insurers use to avoid payout
Errors in administrative processing by military or VA systems
A life insurance attorney can file a formal appeal and, if necessary, take legal action to recover the full benefit owed to you.
Final Thoughts: Protecting Your Military Benefits
SGLI is one of the most valuable benefits available to military families—but it’s not guaranteed unless properly managed. Make sure coverage levels are up to date, premiums are paid, and beneficiary designations reflect your current wishes. And if a claim is ever denied, contact us immediately. If you have Iowa life insurance claim issues call us.
If you’re facing a denied SGLI claim or need help understanding your benefits, reach out today for a free consultation. Our attorneys are here to ensure your family gets the financial protection your loved one intended.