All members of the military are eligible for Servicemembers’ Group Life Insurance (SGLI) and can select coverage amounts between $50,000 and $400,000. It is part of a servicemember’s employee benefit package, and is paid to the beneficiaries after the loss of the servicemember. However, this policy requires proof that an insured member has passed away, forms to be filed in advance of the payment, and evidence that the servicemember was insured, etc. This process typically takes several weeks to more than a month before the beneficiary receives the funds from the policy.
Where SGLI falls short is in the time gap between the date of loss and the funeral. Well before the funds are available from SGLI, your family needs to make funeral arrangements and cover the burial costs. This is where the State Sponsored Life Insurance program comes in. All it takes for SSLI to deliver your survivor’s a check is notification from the National Guard that a servicemember has passed, and they will get a check in the hands of your family immediately.
I am single with no dependents….
In this case, the SSLI coverage may not seem necessary for you, you may just choose to get the minimum $10,000 amount of coverage to lessen the burden left to your family, but also keep in mind your coverage can be retained after leaving the Guard, to age 65, with the same coverage and premium; coverage can then be converted after age 65 to an Individual Whole Life Plan, regardless of health.
I am married with small children….
If you are like most, you have not purchased a family plot, and if the servicemember passes, it leaves the spouse to cover more than just a funeral. For this reason, the SSLI program has designed coverage amounts that can cover more that just the cost of burial. The $50,000 coverage on the servicemember would be a responsible coverage level under these circumstances.
Here’s a summary of the benefits…
- Coverage available for both the Guardsman and the family (Guardsman must be insured before family can be covered)
- Payroll Deductible (Please note if you are AGR as that is a separate payroll system)
- Pays within 24 hours of notification of a claim
- There are NO exclusions and you (and family members, if insured) are covered 24/7, regardless of location
- Belongs to the Soldiers and Airmen of the Kansas Army and Air National Guard
- $10,000 coverage free for first year for new Guardsmen (see below)
- Coverage can be retained after leaving the Guard, to age 65, With same Coverage and Premium
- Coverage can be converted after age 65 to an Individual Whole Life Plan, regardless of health