Posted on Jun 17, 2015
Should you cancel your SGLI before you separate?
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An S1NET message stated that "some Personnel Officers are advising Servicemembers to cancel their [SGLI] coverage months or weeks before their separation date in order to save on premium payments. This is not good advice."
https://www.milsuite.mil/book/docs/DOC-208614. CAC-enabled.
Leaders should recommend that their SMs maintain their SGLI coverage through ETS. In the Reserve Component, SMs frequently stop coming after receiving their ETS orders, thereby neglecting to pay SGLI premiums for the interim months.
Has anyone heard a leader or S1 advising that SMs cancel their SGLI? Has anyone corrected this bad guidance?
https://www.milsuite.mil/book/docs/DOC-208614. CAC-enabled.
Leaders should recommend that their SMs maintain their SGLI coverage through ETS. In the Reserve Component, SMs frequently stop coming after receiving their ETS orders, thereby neglecting to pay SGLI premiums for the interim months.
Has anyone heard a leader or S1 advising that SMs cancel their SGLI? Has anyone corrected this bad guidance?
Transition
Servicemembers
Insurance
Leadership
SGLI
Posted 9 y ago
Responses: 12
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I sold life insurance for a year. One day I had a doctors appointment. When I left the appointment I was uninsurable. I could not even sell myself a policy. Yes, it happens that fast.
One should never cancel a policy until alternate coverage is obtained. And SGLI in at least some cases (if not all) can be converted to VGLI.
One should never cancel a policy until alternate coverage is obtained. And SGLI in at least some cases (if not all) can be converted to VGLI.
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I have never heard of this, and I would discourage it as well. What if a member is involved in a fatal accident on their last day of terminal leave? If they still have SGLI, their family is taken care of!
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No, SGLI is good for 120 days after you seperate. Then you can get VGLI- paying a good price for term insurance with Prudential.
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PO1 John Miller
I screwed up and didn't sign up for VGLI. I looked into it just yesterday in fact and unfortunately it's too late for me as I've been out too long.
I do need to get life insurance as I currently don't have any. I need some as I'm married, have a kid, and a mortgage!
I do need to get life insurance as I currently don't have any. I need some as I'm married, have a kid, and a mortgage!
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1LT (Join to see)
PO1 John Miller - Let me know if you'd like help reviewing your options, I've been running a lot of quotes for separated veterans like yourself and helping them find the best options.
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LTC (Join to see)
Unless things have changed in the last couple of months. VGLI is very expensive, ~$450/month at age 60 if you take the $400K plan.
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