Servicemembers’ Group Life Insurance (SGLI) provides automatic term life coverage up to $500,000 for active-duty and reserve members at about $26 per month. You’re enrolled automatically when you join the military, and the coverage continues for 120 days after separation at no charge. There’s no medical exam required, making it one of the most affordable life insurance options available to service members.
If you’re serving in the military or recently separated, you’ve probably got questions about your SGLI coverage. How much does it cost? What happens when you leave the service? Can you convert it to a civilian policy?
After 30 years helping service members and veterans navigate life insurance decisions, we’ve learned these questions matter. Let’s walk through what you need to know about SGLI, from eligibility to conversion options, so you can make informed decisions about protecting your family.
Who Qualifies for SGLI?
When you enter military service, you’re automatically enrolled in SGLI with the maximum coverage amount unless you choose to reduce it or opt out completely. Here’s who qualifies for the program.
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You only need to meet one of these criteria to be eligible:
Active Duty and Commissioned Members:
- Active-duty members of the Army, Navy, Air Force, Marines, or Coast Guard
- Commissioned members of the NOAA or the United States Public Health Service
- Cadets or midshipmen at U.S. military academies
- Members, cadets, or midshipmen in ROTC participating in authorized training and practice cruises
Reserve and Guard Members:
- Members of the National Guard or Ready Reserve assigned to a unit and scheduled to perform at least 12 periods of inactive training per year
- Volunteers in an Individual Ready Reserve mobilization category
If you’re in nonpay status with the Ready Reserve or National Guard, you may still qualify if you’re scheduled for 12 periods of inactive training for the year and you’re drilling for points instead of payment.
What Coverage Does SGLI Provide?
SGLI offers term life insurance in $50,000 increments up to a maximum of $500,000. When you join the military, you’re automatically enrolled with the full $500,000 coverage, but you can reduce that amount or opt out by filing the appropriate form through SOES (online enrollment system).
Your coverage stays active while you’re in the military and continues for an additional 120 days after you separate from service. There’s no charge for those 120 days. Since this is term insurance, it doesn’t build cash value, so you won’t receive anything from the policy when it terminates.
Think of SGLI like the FEGLI plan for federal employees, but specifically designed for service members.
Here’s what SGLI costs per month:
| Amount of Coverage | Cost per Month |
|---|---|
| $50,000 | $3.50 |
| $100,000 | $6.00 |
| $150,000 | $8.50 |
| $200,000 | $11.00 |
| $250,000 | $13.50 |
| $300,000 | $16.00 |
| $350,000 | $18.50 |
| $400,000 | $21.00 |
| $450,000 | $23.50 |
| $500,000 | $26.00 |
The current rate is $0.05 per $1,000 in coverage plus $1 for Traumatic Injury Protection (TSGLI). There’s no medical underwriting required, which means all eligible service members can get coverage up to the maximum amount regardless of health status.
Disability Extension Benefits
If you’re disabled when you separate from service, you may qualify for a free extension of coverage for up to two years. Here’s what qualifies you for the extension:
You’re totally disabled when discharged and unable to work, or you’ve experienced one of the following regardless of your work status:
- Loss of hearing in both ears
- Complete loss of speech
- Permanent loss of both hands, both feet, both eyes, or any combination of one hand, one foot, and one eye
To apply for the disability extension, complete the SGLI Disability Extension Application and send it to the OSGLI address listed on the application form.
Understanding Your Conversion Options
When you leave the military, you’ve got three main options for life insurance coverage. You can convert your SGLI to Veteran’s Group Life Insurance (VGLI), convert it to an individual policy from a private insurance company, or apply for a brand-new policy.
The benefit of converting rather than starting fresh is simple: you don’t have to prove you’re healthy. For service members who developed health conditions during their service, this can be valuable.
Converting to VGLI
You can convert your SGLI coverage to a VGLI policy within one year and 120 days after separation. You’ll have the option to convert all or part of your coverage without proving insurability.
VGLI lets you keep the same coverage amount or reduce it, and you can apply within that conversion window without a medical exam.
Converting to Private Insurance
Converting your SGLI to an individual life insurance policy offers the same no-medical-exam benefit, though most companies include some health questions on the application. Here’s the thing: if you’re in good health, answering those questions might qualify you for a reduced rate.
You’ve got 120 days from your separation date to start the conversion process. Don’t wait until the last minute, because you’ll want to avoid any lapse in coverage.
Contact one of the insurance companies listed below to verify they offer SGLI conversions in your state, or work with your local insurance agent. These companies are verified on the official VA SGL-133 Participating Companies list.
VA-Approved Insurance Companies for SGLI Conversion:
| Insurance Company |
|---|
| American Fidelity Life Insurance Company |
| Bankers Life and Casualty Company |
| EMC National Life Company |
| Guardian Life Insurance Company |
| Trans World Assurance |
Note: Not all companies are available in every state. Contact the company directly or call OSGLI at 800-419-1473 to confirm availability in your location.
Most conversion companies will request these documents to process your conversion:
- DD Form 214 (Certificate of Release or Discharge from Active Duty)
- SGLI conversion notice
- Current insurance coverage information
Have these ready in advance, especially if you’re approaching the 120-day deadline. You can obtain your conversion notice by calling OSGLI at 800-419-1473.
Additional SGLI Benefits
SGLI comes with a couple of other benefits that can provide valuable protection for you and your family.
Traumatic Injury Protection
This isn’t life insurance, it’s disability coverage. For just $1 per month, you get up to $100,000 in benefits if you experience a serious injury or loss of limb. Considering the physical demands of military service, it’s an affordable layer of protection.
Family Coverage (FSGLI)
If you’re covered full-time under SGLI, you can add coverage for your spouse and dependent children. Spouse coverage is available up to $100,000 (rates based on age), and dependent children get $10,000 of coverage at no additional charge.
Monthly premiums for spouse coverage by age:
| Coverage Amount | Under 35 | 35-39 | 40-44 | 45-49 | 50-54 | 55-59 | 60+ |
|---|---|---|---|---|---|---|---|
| $10,000 | $0.50 | $0.65 | $0.85 | $1.30 | $2.50 | $3.70 | $5.00 |
| $20,000 | $1.00 | $1.30 | $1.70 | $2.60 | $5.00 | $7.40 | $10.00 |
| $30,000 | $1.50 | $1.95 | $2.55 | $3.90 | $7.50 | $11.10 | $15.00 |
| $40,000 | $2.00 | $2.60 | $3.40 | $5.20 | $10.00 | $14.80 | $20.00 |
| $50,000 | $2.50 | $3.25 | $4.25 | $6.50 | $12.50 | $18.50 | $25.00 |
| $60,000 | $3.00 | $3.90 | $5.10 | $7.80 | $15.00 | $22.20 | $30.00 |
| $70,000 | $3.50 | $4.55 | $5.95 | $9.10 | $17.50 | $25.90 | $35.00 |
| $80,000 | $4.00 | $5.20 | $6.80 | $10.40 | $20.00 | $29.60 | $40.00 |
| $90,000 | $4.50 | $5.85 | $7.65 | $11.70 | $22.50 | $33.30 | $45.00 |
| $100,000 | $5.00 | $6.50 | $8.50 | $13.00 | $25.00 | $37.00 | $50.00 |
You can convert spouse coverage under FSGLI without proving insurability, but dependent child coverage can’t be converted.
Should You Convert or Buy New Coverage?
Since you’ve got 120 days of free SGLI coverage after separation, you have time to explore your options. We’ve found that many veterans save money by shopping around for a new policy, especially if they’re in good health.
Here’s what we recommend: compare all three options. Get quotes for VGLI conversion, private insurance conversion, and a brand-new policy. If you’re healthy, a new policy often offers better rates. If you’ve developed health conditions during service, conversion without medical underwriting might be your best bet.
The key is to start this process early. Don’t wait until day 119 to figure out your coverage. Give yourself time to compare options and make an informed decision.
Frequently Asked Questions
What is SGLI and who provides it?
SGLI stands for Servicemembers’ Group Life Insurance. It’s a term life insurance program provided to active-duty and reserve members of the U.S. military. You’re automatically enrolled when you join the service with $500,000 in coverage at about $26 per month, though you can reduce that amount or opt out if you choose.
How much does SGLI cost per month?
SGLI costs $0.05 per $1,000 of coverage plus $1 for Traumatic Injury Protection (TSGLI). For the maximum $500,000 coverage, you’ll pay about $26 per month. You can reduce your coverage in $50,000 increments to lower your monthly premium. The cost is automatically deducted from your military pay.
How long does SGLI coverage last after I leave the military?
Your SGLI coverage continues for 120 days after you separate from service at no charge. After that 120-day period, you’ll need to either convert your coverage to VGLI or a private policy, or apply for new coverage. The conversion must be initiated within those 120 days to avoid a lapse in coverage.
Can I keep my SGLI coverage if I’m in the reserves?
Yes, reserve members who are assigned to a unit and scheduled to perform at least 12 periods of inactive training per year are eligible for SGLI coverage. If you’re in nonpay status, you can still qualify if you’re drilling for points instead of payment.
Do I need a medical exam to get SGLI coverage?
No, there’s no medical underwriting required for SGLI. All eligible service members can get up to $500,000 in coverage regardless of their health status. This guaranteed issue feature is one of the program’s biggest advantages.
Can I get SGLI coverage for my family?
Yes, through Family Servicemembers’ Group Life Insurance (FSGLI). You can add spouse coverage up to $100,000 with premiums based on their age, and dependent children automatically get $10,000 of coverage at no additional charge. You must be covered under SGLI to add family coverage.
What happens to my SGLI if I get injured during service?
If you’re totally disabled when you separate from service, you may qualify for a free two-year extension of your SGLI coverage. This applies to conditions like permanent loss of hearing, speech, or limbs. Additionally, all SGLI coverage includes Traumatic Injury Protection (TSGLI) for $1 per month, which pays benefits up to $100,000 for severe injuries.
What’s the difference between converting to VGLI and buying a new policy?
When you convert to VGLI or a private conversion policy, you don’t need to prove you’re healthy. You’re guaranteed coverage based on your SGLI eligibility. With a new policy, you’ll go through standard medical underwriting. If you’re in good health, a new policy often costs less. If you’ve developed health conditions, conversion protects your insurability.
Key Takeaways
- SGLI provides automatic coverage – You’re enrolled with $500,000 of term life insurance when you join the military at about $26 per month, with no medical exam required.
- Coverage continues after separation – You keep your SGLI coverage for 120 days after leaving service at no charge, giving you time to explore other options.
- Conversion protects your insurability – If you’ve developed health conditions during service, converting to VGLI or a private policy within 120 days lets you keep coverage without proving you’re healthy.
- Shopping around often saves money – Many healthy veterans find better rates by comparing VGLI, conversion policies, and brand-new coverage before making a decision.
- Additional benefits are available – Traumatic injury protection ($1/month) and family coverage options provide extra protection layers for service members and their families.
Ready to explore your options? If you’re approaching separation or recently left the service, let’s talk through your specific situation. We’ll help you compare conversion options with new coverage to find what works best for your family.
