Service-members’ Group life insurance (SGLI) is a life insurance policy in the United States that is made available to all active duty service members and members of the reserve forces. These policies are heavily subsidized by the United States Federal government and are available at very low premiums.

• The administration of such policies is done by department of veteran affairs where insurance programs were developed to offer insurance benefits for veterans and service members who might not be able to get insurance from private companies because of extra risks involved in military service, or a service linked disability.
• It is offered to active duty members of Coast Guard, the Navy, Army, Marine Corps, National Oceanic, Air Force, and Atmospheric Administration Commissioned Corps, and United States Public Health Service Commissioned Corps. Ready reservists, cadets and midshipmen at the four service academies (but not the Merchant Marine Academy), and members of the Reserve Officer Training Corps are included as well.
• Such insurance is offered in increments of $50,000 and has a ceiling or cap of $ 400,000. The premiums are very small and can approximately be somewhere around $27 a month for the maximum limit of $400,000. This is justifiable since service-members are defense personnel and may face death or disability in action.
• Moreover SGLI also offers extended disability coverage if a service-member is disabled at the time of his or her discharge. This coverage is offered at free of cost for two years with the same terms and conditions that were present before the discharge.
• Veteran’s group life insurance (VGLI) is also a similar financial product offered to veterans and SGLI policy holders can convert their policies into VGLI. However this may not be the case when the servicemember has suffered total disability.
• Although SGLI and VGLI are more popular, there are other private organizations that offer similar products. One such organization is the Military benefit association (MBA) which provides similar or higher coverage and may not include the war-clause. Furthermore, what makes these private entities special is that they may offer tailor-made policies to veterans and soldiers alike which gives them an edge over SGLI and VGLI.
• The coverage offered by the SGLI program will be forfeited only when an insured member is found guilty of mutiny, treason, spying, or desertion, or refuses, because of conscientious objections, to perform service in the Armed Forces of the United States, or refuses to wear the uniform of such force.
• No insurance shall be payable for death inflicted as a lawful punishment for crime or for military or naval offense except when inflicted by an enemy of the United States.

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