Servicemembers' Group Life Insurance

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Servicemembers' Group Life Insurance, or SGLI, is a heavily subsidized life insurance product available to active members of the United States Armed Forces, including ready reservists, commissioned members of NOAA and the Public Health Service, cadets and midshipmen in one of the four service academies, and members of the Reserve Officer Training Corps.

Insurance is available in increments of $50,000, up to a maximum of $400,000. As of July 1, 2006, SGLI premiums are $0.07 per $1,000 of insurance, regardless of the member's age. A $400,000 policy costs $29 per month.

Veterans' Group Life Insurance, or VGLI, is a similar product available to Armed Forces veterans. SGLI policyholders may convert their policy to VGLI upon discharge unless an exception for total disability applies. Premiums for VGLI are higher and are based on the age of the insured.

[edit] Alternatives

Coverage provided through SGLI is replicated by very few private organizations, some of which include the Military Benefit Association (MBA), USAA, the Army and Air Force Mutual Aid Association (AAFMAA), the Uniformed Services Benefit Association (USBA), and the Armed Services Mutual Benefit Association (ASMBA). These are all popular insurance providers for members of the armed forces, providing similar or higher coverage levels at rates that are similar to or lower than SGLI. Like SGLI, the coverage provided by these companies is unique in that it is tailored to the needs of military members, and has no war-clause.