Servicemembers' Group Life Insurance (SGLI)

Life Insurance is a very important and valuable benefit for service members. At the time I wrote my book, The Service Member’s Guide to Deployment; What every Soldier, Sailor, Airmen and Marine should know prior to being deployed., service members who died while on active duty received up to $400,000 and under certain situations could receive even more money. Servicemembers' Group Life Insurance or SGLI is life insurance policy the covers service members who die or are killed. The money is paid directly to the named beneficiary or beneficiaries upon the death of the service member. This money could also be used to fund a Trust. The trustee would then carry out the wishes of the deceased service member. Additionally, there are other monies paid to the family upon the death of a service member in combat. I discuss those benefits in greater detail in my book.

It is very important that as a service member you review your SGLI policy to include beneficiary information for changes or necessary modifications. A thorough review of your insurance policy is a must and should be done yearly regardless of your deployment status. You need to review your beneficiary information just in case something unfortunate happens to you the service member. You want to make certain that the person receiving the death benefit actually is the intended recipient or beneficiary. You certainly want to ensure your intended beneficiary is provided for if you are killed while serving your country.

I know of several cases where because the service member did not update their SGLI policy, an ex-spouse or someone other then the intended beneficiary received the insurance money. In situations like that, there is little the intended beneficiary can do, especially without court intervention. Even then, the intended beneficiary has very little to adequately show they were the intended beneficiary. Think of it this way, if it were that easy to contest the named beneficiary, courts would be tied up more then they are already with cases of folks trying to overturn what the court assumes is the “will” of the deceased. If you find yourself in a situation like that, contact an attorney immediately to discuss all of your possible options.