The importance of updating SGLI

  • Published
  • By Judy Trabucco
  • Airman and Family Readiness Center
Servicemembers' Group Life Insurance (SGLI) can be a valuable benefit. In the event of a servicemember's death, SGLI affords the ability leave up to $400,000 to loved ones.

It is important for members to periodically review and update beneficiary designations to ensure they continue to reflect their intentions. Some prime opportunities to do so include during in- or out-processing as part of a PCS move; as part of regular readiness checks while preparing to deploy and on return from a deployment; when significant events occur in life, such as a marriage, divorce, separation, birth or adoption of a child or death of a named beneficiary; or at any time a change in beneficiary designations is desired.

SGLI is a contract between the member and the insurance provider. It is not controlled by the terms of a will or by a state's laws for distributing property in the event of death without a will. The member holds the right to name each person desired as a beneficiary. The insurance provider pays the beneficiaries named. By failing to name beneficiaries, a member gives up control of the life insurance.

Members have used the term "by law" to identify beneficiaries. This designation creates a significant risk of payments to unintended beneficiaries, delays in payments and of legal action by persons claiming the member intended they receive the SGLI proceeds or attempting to include themselves within the class covered by the term "by law." Servicemembers who use "by law" instead of naming a specific beneficiary, this benefit must go through probate and statutory laws and could take up to 10 years to be settled.

By taking some time to consider and name specific beneficiaries, members avoid these potential problems and exercise the power to control how this benefit is paid. Although disputes can still occur when a member specifically names beneficiaries, the specifically named beneficiaries will prevail over the unnamed claimants. Court decisions routinely cite specifically named beneficiaries as the best evidence of a military member's intent.

For further information about SGLI, contact Judy Trabucco, casualty assistance representative and survivor benefits counselor, at 781-225-2755.