What Does Servicemen’s Group Life Insurance Mean?
Servicemen’s Group Life Insurance (SGLI) refers to insurance coverage for military personnel that belong to such groups as the Navy, Armed Forces, Marines, Coast Guard, etc. Eligibility is automatic if one is qualified. Premium payment is taken from the salary.
Insuranceopedia Explains Servicemen’s Group Life Insurance
Members of the following are automatic members of SGLI: Army, Navy, Marine Corps, Air Force, Coast Guard, National Oceanic and Atmospheric Commissioned Corps, and United States Public Health Service Commissioned Corps. ROTC reservists, cadets and midshipmen are eligible as well. The maximum coverage is $400,000.
Coverage can be provided in two ways: a lump sum or installments of 36 payments. Once a policyholder retires from service, the policy can be converted into a Veterans’ Group Life Insurance policy.
An eligible person can decline SGLI and look for similar insurance elsewhere. he or she can also look for a cheaper SGLI program.
This program is commonly called Servicemembers’ Group Life Insurance.