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My Coast Guard
Commentary | Jan. 26, 2023

SGLI maximums are increasing to $500,000

By Zach Shapiro, MyCG Writer

Attention, workforce! You will soon be able to carry a maximum of $500,000 in Servicemembers’ Group Life Insurance (SGLI) coverage. On Oct. 17, President Joseph R. Biden signed the Supporting Families of the Fallen Act, which raised the SGLI maximum from $400,000 to $500,000. The increase will take effect March 1. 

Upon the effective date, all service members will receive the new maximum coverage automatically regardless of prior elections. As determined by the Department of Veterans Affairs (VA), you will have one calendar month (March) to decline or reduce coverage without paying for coverage (if you previously had no coverage) or the increased coverage (if you previously chose to reduce coverage). Elections to decline or reduce coverage during this window will be effective on the first day of the following month. 

Accordingly, all service members will have maximum SGLI coverage in March. Service members who reduce or decline coverage by Mar. 31, will not be liable for the premiums other than those applicable to their already existing elected coverage. Those who decline or reduce coverage after Mar. 31, will be charged for the increased coverage amount through the month in which they declined, and their new elections will take effect the first day of the month following their election.

Service members may elect coverage in $50,000 increments. Current monthly SGLI premiums stand at $.06 per $1,000 of coverage. Therefore, $500,000 of coverage will cost $30 per month, while $450,000 will cost $27 per month. Traumatic Injury Protection (TSGLI) coverage will continue to cost $1 per month.

As a reminder, the SGLI on-line enrollment system (SOES) is the primary means for making changes to SGLI coverage and beneficiary designations – it provides service members the capability to manage their insurance coverage information. Service members must make elections and beneficiary entries/updates in SOES. Elections to decline or decrease coverage related to the $500,000 increase cannot occur before the effective date of March 1. To log-in to SOES, go to milConnect and see “Manage my SGLI”. 

Service members who are separating from the service on or after March 1 with SGLI coverage up to $500,000, can sign up to convert their coverage to Veterans Group Life Insurance (VGLI) in an amount up to or equal to the SGLI coverage they had at separation, in $10,000 increments. Please note that coverage will not increase automatically for current VGLI members. Eligible VGLI members under the age of 60 who have the current maximum coverage of $400,000 will be able to purchase additional coverage in $25,000 increments (without medical underwriting), up to $500,000, during specified coverage anniversary dates. For more information on VGLI, please see Prudential VGLI: Learn More.

If you have any questions, please contact the Office of Military Personnel Policy, Military Pay & Compensation Division (CG-1332).