milpersman 1741-020 government life insurance

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MILPERSMAN 1741-020

GOVERNMENT LIFE INSURANCE

Responsible

Office

NAVPERSCOM

(PERS-00C)

Phone: DSN

COM

Toll Free

882-2501

(901) 874-2501

(800) 368-3202

MyNavy Career Center

Phone: Toll Free

E-mail:

MyNavy Portal:

1-833-330-MNCC (6622)

[email protected]

https://my.navy.mil/

References

(a) 38 U.S.C. §1965-§1980

(b) BUPERSINST 1001.39F

(d) 10 U.S.C. §12731

1. Servicemembers' Group Life Insurance (SGLI). SGLI is a life

insurance policy purchased by the Veterans’ Administration from

a commercial life insurance company that is available to

eligible members of the United States Navy up to a maximum of

$400,000. The Office of Servicemembers' Group Life Insurance

(OSGLI) administers the SGLI Program and is governed by

reference (a). The Servicemembers’ and Veterans’ Group Life

Insurance Handbook also discusses the program in detail at:

https://www.benefits.va.gov/INSURANCE/resources_

handbook_ins.asp.

2. SGLI Coverage. Eligible members, as outlined below, are

automatically insured for $400,000, unless otherwise reduced or

declined by the members. Additional details about Government

life insurance for reserve members may be found in reference

(b). Eligible members include:

a. Service members on active duty in the Regular Navy.

b. Navy Reserve members performing active duty, active duty

for training (ADT), or inactive duty training (IDT).

c. Naval Reserve Officer Training Corps (NROTC) midshipmen

- fully covered while on training cruises only.

d. Naval Academy midshipmen - covered on a full-time basis.

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e. Any Sailor deployed to a combat theater of operations.

f. Navy Reserve members (pay or non-pay) who are assigned

to a unit in which they may be required to perform active duty

or ADT and will be scheduled to perform at least 12 drills

annually that are covered on a full-time basis. Entitlement to

coverage is affected if a member becomes medically disabled or

is transferred to a unit that is not scheduled to perform at

least 12 drills per year.

g. Other members of the Individual Ready Reserve (IRR) -

covered only during the period of their ADT.

Note: Per reference (a), reservists who execute active duty

orders are automatically covered for the maximum amount.

Regardless of previous elections, reservists who wish to reduce

or decline coverage must make such elections in the SGLI Online

Enrollment System (SOES) after entering onto active duty.

3. SGLI Online Enrollment System (SOES). In April 2017, the

Chief of Naval Operations announced the activation of the SOES.

SOES is designated as the system of record for SGLI elections

and beneficiary designations; all data entered in SOES will be

maintained within the system. Effective immediately, Sailors

will conduct actions described in subsequent paragraphs of this

article using the SOES accessible through milconnect at

https://milconnect.dmdc.osd.mil/milconnect/. Use of the SGLV

8286 Servicemembers’ Group Life Insurance Election and

Certificate may occur outside SOES under the following

circumstances:

a. Sailor is unable to access the system due to computer

accessibility, limited bandwidth, or system maintenance;

b. Sailor is unable to enter desired beneficiary

information due to system limitations (e.g., Sailor wishes to

enter information regarding a trust or trustee, custodial

account, or pre-existing data is incorrect); or

c. Other circumstances in which entry into SOES is not

possible. Sailors not using the SOES should ensure the SGLV

8286 is signed, witnessed, and submitted into the official

military personnel file (OMPF). If needed, an SGLV 8286 may be

accessed from Web address: https://www.benefits.va.gov/

INSURANCE/resources-forms.asp. Additionally, Sailors who use

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this option should update their election in SOES as soon as

possible.

Note: Inclusion in the OMPF is only required if an SGLV 8286 is

signed outside SOES. Coverage and elections made in SOES are

retained within the system and should not be submitted to the

OMPF.

4. Command Responsibility. SOES provides a unique opportunity

to empower Sailors, but commands still play a crucial role in

the education of our Sailors. SGLI; Family Servicemembers’

Group Life Insurance (FSGLI); and, upon retirement, VGLI provide

excellent opportunities for low cost insurance coverage.

Commands will:

a. Ensure members are provided necessary information to

make the best determinations for coverage and advise them to

monitor SGLI premium payments indicated on their leave and

earnings statements (LES).

b. Require Sailors to review their election in SOES:

(1) Annually,

(2) Prior to deployment,

(3) Upon transfer, and

(4) Upon reporting to a new command.

c. Document any Sailor-decision for non-coverage or reduced

coverage on a NAVPERS 1070/613 Administrative Remarks.

d. Send a letter to the spouse of any Sailor per paragraphs

5 and 6 below, should the Sailor make an election using an SGLV

8286, per paragraph 3 above. SOES automatically generates the

required letter, when elections are made in SOES.

e. Establish a command SOES administrator by requesting

access through e-mail at [email protected]l.

f. Retain all completed SGLV 8286s per paragraph 3 above,

until Sailor is able to make elections in SOES.

g. Ensure reservists accepting active duty orders review

their SGLI elections and premiums.

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h. Advise non-pay members enrolled in SGLI to review their

quarterly electronic bills sent by the Defense Finance

Accounting Service and make payments through

https://www.pay.gov.

5. Reducing or Declining Coverage. Members may decline

coverage or request reduced coverage in any increment of $10,000

by accessing SOES and making such elections. Members are

encouraged to check future LESs to verify the subsequent changes

in premium. If member is married, the member’s spouse will be

automatically notified in writing if the member elects other

than the maximum amount of coverage.

Note: Sailors should always check their LES to verify that

premiums properly reflect coverage level. In the event of a

discrepancy, contact your command pay and personnel

administrator (CPPA), or My Navy Career Center (MNCC).

6. Designation of Beneficiaries. Members may designate any

person(s) as their beneficiary(ies). If the member is married

and designates any individual other than his or her spouse or

child, the spouse will be automatically notified in writing (to

be done by the command, if the Sailor uses an SGLV 8286 per

paragraph 3 above). Should multiple beneficiaries be named,

SOES will require the member to clearly specify the amount

designated for each.

7. Accelerated Benefit Option (ABO). If the insured member has

been certified by a physician as “terminally ill,” the member

may elect the ABO under SGLI or Veterans’ Group Life Insurance

(VGLI). The member may receive a lump sum payment of up to 50

percent of his or her SGLI or VGLI coverage. “Terminally ill”

is defined as having a medical prognosis of a life expectancy of

9 months or less. Only the insured can apply for payment under

the ABO. Accepting this benefit reduces the subsequent amount

awarded at death. Details for members considering this option

are available in reference (a), section §1980, or the VA’s SGLI

Handbook.

8. Termination of SGLI

a. Per reference (a), termination of SGLI occurs on:

(1) The 120th day after separation from active duty or

ADT under calls or orders that specify a period of 31 days or

more, unless the member returns to an active status in the Navy

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Reserve, and on the 120th day after a member is separated from a

drilling status for members of the Selected Reserve, or nonpay

members assigned to a reserve unit which performs at least 12

drills annually as outlined in subparagraph 2e above;

(2) The end of the 31st day of a continuous period of

time when the member is:

(a) Absent without leave,

(b) Confined by civil authorities under a sentence

adjudged by a civilian court,

sentence by court-martial involving total forfeiture of pay and

allowances, or

(3) The last day of the month in which written notice to

discontinue coverage is filed.

b. SGLI is forfeited when an insured member is found guilty

of mutiny, treason, spying, desertion, or refuses (because of

conscientious objections) to perform service in the Military

Services of the United States or to wear the uniform of such

services.

c. No insurance will be payable for death inflicted as a

lawful punishment for crime or for military or naval offense,

except when inflicted by an enemy of the United States.

9. Restoration of SGLI Coverage

a. Service members who decline or elect to reduce coverage

or seek to become insured or increase their coverage must

request restoration through SOES. Members are advised this

request may require review and approval at the Office of

Servicemen's Group Life Insurance (OSGLI) level.

b. Coverage terms are automatically restored if benefit was

terminated due to:

(1) Unauthorized absence in excess of 31 days,

(2) Confinement by civilian authorities under a sentence

adjudged by a civilian court, or

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(3) Military confinement involving total forfeiture of

pay.

10. Extension of SGLI Coverage for Disability. A Service

member with current full-time SGLI coverage and who is

considered totally disabled (as defined in reference (c)) at the

time of separation or release from active duty is eligible for

coverage extension. Coverage will be provided for 2 years from

the date of separation or release, or to the date the insured

ceases to be totally disabled (whichever is earlier), but in no

event prior to 120 days after separation or release.

11. SGLI Part-Time Coverage. Part-time coverage is provided

for reserve Sailors who:

a. Are not eligible for full-time coverage and execute a

set of active duty orders for less than 31 days. The Sailor is

fully covered during the active duty timeframe.

b. Perform inactive duty training scheduled in advance.

The Sailor is covered during the execution of inactive duty

training orders.

c. Are en route directly to or from the location of a

period of active or inactive duty.

d. Are NROTC midshipmen while on training cruises.

12. SGLI-to-VGLI Conversion. Per reference (a), the conversion

privilege is as follows:

a. Service members with full-time SGLI coverage at the time

of separation or release are eligible for VGLI in the same or

lesser amount held at the time of separation or release, or

conversion to an individual policy with a participating

commercial company. A member electing to convert to VGLI must

apply for coverage within 1 year and 120 days of leaving the

military. If the member applies within 240 days after

separation or release, VGLI is issued, regardless of the

member’s state of health, with coverage made effective on the

241st day. If an application is not submitted within the 240-

day period, medical evidence of insurability is required. In

this case, VGLI will be effective the date an acceptable

application and premium is received by the OSGLI. Members who

are totally disabled at the time of separation may purchase VGLI

while remaining totally disabled up to 1 year following

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separation. The effective date of VGLI will be at the end of

the 1-year period following separation, or the date the

disability ends, whichever is earlier. See paragraph 16 below

for additional information regarding VGLI.

b. While insured under part-time coverage, members who

incur a disability or aggravate a preexisting disability during

a reserve active or inactive period may convert their SGLI

coverage to VGLI coverage within the 120-day period following

the period during which the disability incurred. Proof of

disability must be submitted together with an application and

initial premium.

c. Conversion to VGLI cannot be accomplished in SOES.

Members must apply directly to the VA for conversion to VGLI

online at: https://www.benefits.va.gov/insurance/apply-for-

vgli.asp or by mail using SGLV 8714 Application for Veterans’

Group Life Insurance. SGLV may be accessed by using the

following Web address: https://www.benefits.va.gov/

INSURANCE/resources-forms.asp.

13. Financial Counseling. The VA offers free professional

financial counseling through Financial Point. Additional

information is available through the U.S. Department of Veterans

Affairs Web site at: https://www.benefits.va.gov/insurance/

bfcs.asp.

14. SGLI Coverage for Retired Reservists

a. A member assigned to the Retired Reserve or eligible for

assignment to the Retired Reserve qualifies for coverage under

the VGLI Program in increments of $10,000 up to the maximum

coverage of $400,000, provided that the member:

(1) Has not received the first increment of retired pay;

(2) Has not reached his or her 61st birthday;

(3) Has completed at least 20 years of satisfactory

service creditable for Reserve retired pay under reference (d),

subchapter III; and

(4) Submits a completed SGLV 8714 and the required

premium to the following address:

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Office of Servicemembers' Group Life Insurance

290 W. Mt. Pleasant Avenue

Livingston, NJ 07039-2747

b. Application for this coverage must be made within 120

days from transfer to the Retired Reserve or release from the

Selected Reserve.

c. Termination of insurance occurs upon receipt of the

first increment of retired pay, or the 61st birthday, whichever

occurs first.

15. FSGLI. Family coverage under the SGLI Program became

effective 1 November 2001. Program details, including the

procedures for filing a claim, are contained in MILPERSMAN 1741-

030, Family Servicemembers’ Group Life Insurance.

16. VGLI. VGLI is a 5-year renewable term policy which has no

cash, loan, paid-up, or extended values. Application,

designation of beneficiaries, and settlement options should be

made on SGLV 8714. Refer to paragraph 11 for timing

requirements regarding application for conversion from SGLI to

VGLI.

a. Eligibility. VGLI is available to the following

members:

(1) Service members who are released from active duty or

ADT under calls or orders that do not specify a period of 31

days or less;

(2) Members of the Ready Reserve insured under SGLI who

are separated, retired, or released from assignment;

(3) Individuals assigned to the IRR (must provide

orders); and

(4) Members with part-time SGLI who suffer an injury or

disability while in the performance of their duty (to include

travel to and from duty location) which renders them uninsurable

at standard premium rates.

b. Conversion. Members may convert VGLI coverage to a

participating commercial company at any time, provided VGLI

premiums are paid-up to the date of conversion.

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c. For claim submittal and payment information, effective

dates of coverage, and any additional information, refer to the

Department of Veterans’ Affairs Web site at: https://www.

insurance.va.gov/sgliSite/vgli/vgliFaq.htm.

17. Combined SGLI and VGLI. Any member insured under VGLI who

again becomes eligible for coverage under SGLI (i.e., separated

individuals who reenlist for military service) may not exceed

the maximum amount of $400,000 of combined coverage. These

members may elect to be completely covered under SGLI or (within

60 days after becoming so insured) may convert any or all of the

VGLI coverage to an individual private policy. However, if the

member dies within the 60-day period before converting, VGLI

will be payable only in an amount which (when added to the

amount of SGLI payable) must not exceed $400,000.

18. Service-Disabled Veterans Insurance

a. The Service-Disabled Veterans Insurance Program was

established in 1951 to meet the insurance needs of certain

veterans with service-connected disabilities.

b. Eligibility Conditions:

(1) Must have been released under other than

dishonorable conditions on or after 25 April 1951;

(2) Must have received a rating for service-connected

disability;

(3) Must be in good health, except for any service-

connected conditions; and

(4) Must apply within 2 years of being granted a service

connection for a disability.

c. Complete program details and applications can be found

on the Department of Veterans’ Affairs Web site at:

https://www. insurance.va.gov/gli/buying/SDVI.htm

19. Spouse Notification. Spousal notification letters are

automatically generated through SOES, based on data available in

the Defense Enrollment Eligibility Reporting System (DEERS).

Should a member require emergent actions outlined in paragraph

3(c) above, the command must issue the spousal notification

letter if the hard copy election form meets the criteria

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outlined in paragraphs 5 or 6 above. Exhibit 1 is a sample

letter for use in these infrequent instances.

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EXHIBIT 1

SAMPLE SPOUSE NOTIFICATION LETTER

(Use proper letter format.)

DEPARTMENT OF THE NAVY

Navy Recruiting District Columbia

1835 Assembly Street

Strom Thurmond Federal Building

Columbia, SC 29201-2480

1770

Ser CO 15/

July 3, 2021

Mr. Oliver O’Toole

938 Tankerhurst Drive

Waco, TX 55555

Dear Mr. O’Toole:

Our records indicate that you are the spouse of Petty Officer Pauline

Williams O’Toole. Per 38 U.S.C., chapter 19, we are notifying you that on

July 1, 2011, Petty Officer O’Toole (declined Servicemember’s Group Life

Insurance (SGLI)/elected an amount of coverage less than the maximum

amount offered under the Servicemember’s Group Life Insurance (SGLI)

Program/has designated another/additional beneficiary(ies) under the

Servicemember’s Group Life Insurance (SGLI) Program).

By law, your spouse is entitled to make the above election. We are

required by the same law to inform you of the decision, but we may not

disclose any other particulars, other than those stated above. Your

spouse has been made aware that this letter was generated and sent. If

you have any questions regarding this letter, please call 1-800-368-3202

or write to the office below:

Navy Casualty Assistance Division (PERS-00C)

5720 Integrity Drive

Millington, TN 38055-6200

C. A. CAPTAIN

Captain, U.S. Navy

Commanding officer

Copy to:

PERS-313