FSGLI Procedures Guide: Part I: General Provisions of the Family SGLI (FSGLI) Program

• Eligibility For FSGLI Coverage
• FSGLI Coverage Levels
• Automatic Coverage
• FSGLI Premiums 
• FSGLI Beneficiary
• Beneficiary Financial Counseling Service (BFCS)
• Conversion
• Accelerated Benefits Option (ABO)

Eligibility For FSGLI Coverage

Family SGLI (FSGLI) coverage provides life insurance coverage for the spouses and dependent children of all Servicemembers (Active Duty, Ready Reserve and National Guard) who have full-time SGLI coverage.

A "dependent child" includes any unmarried child in one of the following categories:

• natural born child
• legally adopted child
• stepchild who is a member of the Servicemember’s household
• unmarried dependent child between the ages of 18 and 23 who is pursuing a course of instruction at an approved educational institution
• child who became permanently incapable of self-support before age 18

FSGLI Coverage Levels

Spousal Coverage

Spousal coverage is a maximum of $100,000 and can be in lesser amounts in increments of $10,000. However, spousal coverage cannot exceed the Servicemember’s level of SGLI coverage.

Example: If the Servicemember’s coverage is for any level of coverage between $400,000 and $100,000, then the spousal coverage can be as high as $100,000. If the Servicemember’s coverage is $50,000, then the spousal coverage can be no more than the Servicemember’s level of coverage.

Servicemembers married to Servicemembers can be covered under both their own member’s SGLI for $400,000 and their spouse’s FSGLI for $100,000 for a maximum combined coverage of $500,000.

Dependent Child Coverage

Dependent child coverage is the set amount of $10,000 for each dependent child.

Automatic Coverage

FSGLI coverage begins automatically for Servicemembers who:

• were married when the program began on November 1, 2001
• enter onto active duty or Ready Reserve/National Guard service* and are married/has dependent children OR
• get married/gain a dependent child during service AND
• have full-time SGLI coverage

Spousal coverage is automatically set at the maximum level of $100,000 or the Servicemember’s SGLI coverage level, if it is less than $100,000.

Automatic coverage begins with the following events:

• the date of entry onto a period of active duty or Ready Reserve/National Guard service*
• the date of marriage while in service (after Nov. 1, 2001)
• the date a child becomes a dependent (i.e. date of birth, date of adoption, date entered the household)

FSGLI Premiums

The Servicemember pays premiums for the spousal coverage. The dependent child coverage is free.

Premiums for spousal coverage are due the month of the event that causes coverage to occur (e.g. Nov 1, 2001, induction of the Servicemember into service or the date of a marriage while in service). If the member does not notify the service of his/her marriage, premiums for spousal coverage are still due and will be collected retroactively.

For Army, Navy and Air Force, the collection of FSGLI premiums is based upon the spouse’s birth date in DEERS. If the spouse is not registered in DEERS, premiums will not be withheld from the Servicemember’s pay, however, premiums for spousal coverage are still due and will be collected retroactively. (Servicemembers married to Servicemembers must register each other as a spouse in their respective DEERS records.)

Unlike Servicemember’s SGLI premiums that are one premium rate for all members, spousal premiums are based on age brackets. When a spouse moves to a new age bracket, the new higher premium begins the first day of the month following the birth month. (See Appendix B - FSGLI Spousal Coverage Premium Rates at the end of this document for the premium rates for each spousal age bracket.)

For Army, Navy and Air Force, the spouse’s birth date in DEERS determines the premium rate to be collected. If the spouse’s birth date is incorrect in DEERS, the incorrect premium rate will be collected. And if the spouse’s birth date is not in DEERS, premiums will be collected at the maximum rate.

For Army, Navy and Air Force, the member must report to DEERS via RAPIDS changes such as divorce or death of a spouse in order to stop premium collection.

FSGLI Beneficiary

The Servicemember is the beneficiary of the FSGLI coverage, so no naming of a beneficiary is needed. A Servicemember is not entitled as beneficiary if he/she is convicted or pleads guilty to involvement in the death of the spouse or the dependent child. In such cases, the beneficiary or beneficiaries are determined under 38 USC 1970(a).

Beneficiary Financial Counseling Service (BFCS)

BFCS is available to a Servicemember who claims the FSGLI upon the death of a spouse. BFCS provides no-cost personal financial counseling to beneficiaries of FSGLI policies. The Servicemember will be notified of this benefit when they receive the payment of the proceeds of their FSGLI.

Conversion

When the FSGLI coverage ends under certain circumstances, there is 120 days of free coverage and the spouse can convert the spousal FSGLI coverage to a commercial life insurance policy. If the insurance is converted within the 120 day period, proof of good heath is not needed. Dependent child coverage cannot be converted. More information about conversion is available on our conversion information page. The spouse can get information about conversion by contacting the Office of Servicemembers’ Group Life Insurance (OSGLI)

Accelerated Benefits Option (ABO)

The Accelerated Benefit Option (ABO) gives the Servicemember access to the death benefits of the FSGLI policy before the death of a terminally-ill spouse. The member may receive up to 50% of the face value of the spousal coverage through the ABO. The ABO is available in $5,000 increments. In order to qualify for the ABO, the spouse must have a medical prognosis of life expectancy of nine months or less. Only the Servicemember can apply for ABO and the benefit will be paid only to the Servicemember. More information about ABO is available on our Accelerated Benefits Option information page.