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    Opt Out or Pay: All Troops to Automatically Get Life Insurance March 1

    Opt Out or Pay: All Troops to Automatically Get Life Insurance March 1

    All eligible troops are going to be signed up for $500,000 worth of Servicemembers' Group Life Insurance coverage starting on March 1 — even those who chose not to buy SGLI coverage in the past — unless they opt out.

    A law passed in October 2022 mandated the increase.

    members will be charged automatically unless they take action before the March deadline. The amount represents a $100,000 increase in the maximum benefit. Administered by the Department of Veterans Affairs (VA), the insurance pays your beneficiaries if you die while on active duty or while serving in the National Guard or Reserve.

    Coverage starts March 1, but new automatic paycheck deductions won't kick in until March 31, giving service members the month to opt out or avoid the full $31 premium for $500,000 in coverage. The prior maximum of $400,000 cost a monthly premium of $24.

    Troops eligible for the life insurance may also buy less coverage, available in $50,000 increments, for lower monthly premiums.

    The new deductions tack on another $1 for “TSGLI” coverage as well. TSGLI pays out in the event of a traumatic injury. The bundle also comes with $10,000 in free life insurance coverage for each dependent child. (TSGLI stands for Servicemembers' Group Life Insurance Traumatic Injury Protection.)

    During March, eligible troops need to decide whether to:

    • Do nothing and accept the maximum coverage.
    • Reduce their coverage. TSGLI and…

    Continue Reading This Article At Military.com

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