SGLI offers low-cost term coverage to eligible service members. The U.S. Department of Veteran’s Affairs (VA) provides life insurance as an important benefit to assist with securing the financial future of eligible members’ families. If you’re a service member, it’s crucial to understand the details of your SGLI coverage.
Key Points:
- SGLI coverage will increase from $400,000 to $500,000 effective March 1, 2023.
- All service members eligible for SGLI coverage will have $500,000 of coverage for the entire month of March 2023.
- The SGLI premium rate remains at $0.06 cents per thousand dollars of coverage.
- The law increasing coverage does not provide retroactive death benefits for SGLI members who died between October 17, 2022, and March 1, 2023.
FAQs
Here are answers to some frequently asked questions about the increase in SGLI coverage:
1. How much will the SGLI coverage increase by?
The SGLI coverage will increase from $400,000 to $500,000 effective March 1, 2023.
2. Will I automatically have the increased coverage amount?
Yes, if you are eligible for SGLI coverage, you will have $500,000 of coverage for the entire month of March 2023.
3. What will be the cost of the increased coverage?
The premium for $500,000 of coverage will be $30 monthly plus an additional $1 for Traumatic Injury Protection (TSGLI) coverage.
4. Will the increase in coverage affect TSGLI coverage?
For service members who already have SGLI coverage, there will be no impact on TSGLI coverage since it is automatic with SGLI coverage. However, service members who previously declined SGLI coverage will now automatically have TSGLI coverage at a cost of $1 a month.
5. How will the increase in SGLI coverage affect spousal coverage under Family SGLI (FSGLI)?
The increase in SGLI coverage will not impact a service member’s current coverage for spouses. All FSGLI spousal coverage elections will remain unchanged with the increase in SGLI coverage.
6. Will dependent child coverage be affected by the increase in SGLI coverage?
Service members who previously declined SGLI coverage and now have automatic $500,000 of SGLI coverage will also have dependent child coverage at no cost to them. This coverage will remain in effect as long as they retain SGLI coverage. There is no change in dependent child coverage for service members who already had SGLI coverage.
7. How does the SGLI coverage increase affect Veterans’ Group Life Insurance (VGLI)?
The maximum amount of VGLI coverage will also increase to $500,000 for service members separating on or after March 1, 2023, with the higher amount of SGLI coverage.
For more information, visit the VA’s official websites:
Conclusion
Ensuring the financial security of your family is essential, and SGLI provides a valuable life insurance benefit for eligible service members. With the increase in coverage to $500,000, you can have peace of mind knowing that your loved ones are protected. Remember to stay informed about the details of your SGLI coverage and take advantage of the additional benefits it offers.
If you have specific questions or need more information, visit the VA’s official websites mentioned above.
