The Basics of Servicemembers Group Life Insurance

Posted in Life Insurance

February 4th, 2009

Servicemembers Group Life Insurance is provided as a VA program for members of the Uniformed Services who need coverage. The benefits of this type of policy are typically rather generous, but are only given to military officials.

What Members of the Uniformed Services are Included?

All members of the branches of the military, including commissioned officers of the Public Health Service and National Oceanic and Atmospheric Administration are included in this type of coverage. Also, cadets and midshipmen of the service academies are included. If you fit into one of these categories then you are already insured for Servicemembers Group Life Insurance for the maximum amount of $400,000, unless an election is filed against you that reduces the amount by $50,000 increments or cancels the entire policy.

Additional Info about Coverage

• If you suffer major injuries, you can include Traumatic Injury Protection, which provides financial assistance to care for loved ones as you recover. This coverage can range from $25,000 to $100,000 and is determined by the nature of the injury.
• In July 2008, premium rates decreased to 6.5 cents per $10,000, which equates to $27 per month if you receive the full $400,000 benefit.
• If you receive only part-time coverage, you will be charged $28 per year for your $400,000 benefit.
• If you are released from active duty, your Servicemembers Group Life Insurance policy can be converted to a commercial policy at the end of a 120-day extension period.

Also, if you are totally disabled when you separate from the service and have a policy at the time, you may be able to keep your coverage for up to 2 years at no cost to you. To find out your eligibility or learn more about Servicemembers Group Life Insurance, contact the Department of Veterans Affairs.