Service Members’ Group Life Insurance Preparedness
by Kim Ryder, Navy Ombudsman
Every service member has an immediately-accessible form in their records that contains up-to-date emergency and next-of-kin data. It also serves as an application for dependency allowances. This form is usually called the Dependency Application/Record of Emergency Data (DARED) form, though the name varies by branch of service. It’s first completed by service members at their first duty station or at basic training.
The DARED is a crucial component of each service member’s file. Life changes, including marriage, divorce, new dependents and change of address, must be updated on the service member’s “page 2,” as it’s referred to in the Navy. This ensures benefits will be received by the proper beneficiary. Updating this form is often overlooked, especially when a service member marries. But updating this form becomes especially crucial when a service member takes on dependents, as it ensures designated recipients receive any SGLI payouts in case of a tragedy.
SGLI began in 1965 to meet the life insurance needs of Vietnam-Era service members. Before that, the military provided $10,000 policies to active-duty service members. Today, service members can elect coverage in increments of $50,000 up to $400,000. This inexpensive coverage is made available to active-duty service members and most reservists.
Separating service members on SGLI have two options available to them: They can choose to convert their policy to either the Veterans’ Group Life Insurance (VGLI) program, or to a permanent plan of insurance with a participating commercial insurance company. The SGLI Disability Extension allows service members who are completely disabled to continue their SGLI coverage at no cost for up to two years after discharge.
Recently another program was made available to dependents. The Family Service Members’ Group Life Insurance (FMSGLI) program is offered to spouses and dependent children of service members insured with SGLI. FSGLI offers a maximum of $100,000 coverage for spouses and $10,000 for dependent children. This coverage is also offered at a low cost.
Service members should contact their personnel support center or personnel flight, payroll and/or finance office for SGLI and FMSGLI premium payment information, and to update all necessary forms.
All military spouses are strongly urged to keep up to date records and beneficiary information when dealing with SGLI. Your future may depend upon it.