Benefits of SGLI?

[usnapamom]

Our DS just received his PTR today and we're a bit befuddled about the SGLI life insurance.
Is this something that midshipmen usually take out? Our DS is 17 with no dependents.
Also, if we opted out of it now, can he sign on for military-sponsored life insurance down the road?
Thank you!

 

[nap11]

For the four years at USNA many midshipman drop the $400,000 coverage down to $50,000 or $0 ($4.50/Month). Since midshipman don't have any dependents, the only real expense is the funeral if the midshipman dies. Yes, you can update that form after you graduate from USNA.

 

[Capt MJ]

I don't think enough info is put in the PTR about SGLI. Here are some links for background:

https://www.dfas.mil/militarymembers/paydeductions/sgli.html

https://www.benefits.gov/benefits/benefit-details/585


A lower level of coverage given the no spouse/house/kids makes sense. If a mid takes the Career Starter Loan from USAA or NFCU down the road (I think max is $36k), has a car loan, student loan (college re-applicant) or other consumer debt, a bit of SGLI covers the debt in the worst case scenario.

http://www.benefits.va.gov/insurance/sgli.asp

 

[usnapamom]

Thank you for helping us figure all this out!

 

[Capt MJ]

Another thing to review at this time, or remember to do later - is take a look at any life insurance policies you may have on your DS or DD, especially if you were planning to add units, to check for combat exclusion, war clause, or military specialty exclusions. Policy pays for "normal" death events (sorry to say the word and raise the possibility) but may not if it occurs in certain locations or during certain military activities.

The good news is there are plenty of well-established life insurance companies, both .org and .com, who specialize in coverage of military personnel, should more coverage beyond SGLI term life be desired in future.

And you're welcome. Military paperwork has just begun!

 

[Cerberi]

You can change your benefit coverage every single day you are at USNA or on active duty. For example, if you wanted the minimum coverage most of the year, but wanted to increase it while engaging in more dangerous summer activities you can do it.

It is not like signing up for corporate benefits when you must and can only sign up once a year during the benefits enrollment timeframe.

 

[Norfolk63]

And this insurance also includes TSGLI in case of a traumatic injury on or off duty.

 

[Cerberi]

I had never heard of the TSGLI before, but it costs $1/month and you must have some level of SGLI coverage to also obtain TSGLI.

http://benefits.va.gov/INSURANCE/tsgli.asp

I don't know what qualifies as a 'traumatic injury'.