SGLI Spousal 'Opt-Out' Deadline Extended to Dec. 31

By Gerry J. Gilmore
American Forces Press Service

WASHINGTON, Nov. 9, 2001 -- Troops who don't want spousal coverage in the Servicemembers' Group Life Insurance program now have until Dec. 31 to cancel at no charge. This is a one-month extension on the initial Nov. 30 opt-out deadline widely reported in October.

New rules effective Nov. 1 provide SGLI participants with free $10,000 coverage per child and low-cost spousal coverage of up to $100,000.

Service members with personal SGLI coverage of $100,000 or more are automatically enrolled for the maximum $100,000 spousal coverage, said Navy Capt. Chris Kopang, DoD director of compensation. The accompanying premium will be deducted from military pay each month.

Spouse's coverage can be no higher than the member's, and so is limited if the member carries less than $100,000 personal coverage, he explained. Spouse coverage must be elected in $10,000 increments. Premiums are based on coverage and the spouse's age.

Spouse's age  Rate per $1,000  Maximum Monthly Premium
Under 35          $.09              $9
35-44             $.13             $13
45-49             $.20             $20
50-54             $.32             $32
55+               $.55             $55

Coverage for children up to age 18, or 23 if a fulltime student, is free and automatic, so long as the member participates in SGLI, Kopang said. Eligible Reserve component members receive the same family-member coverage with premiums being deducted from their drill pay, he said.

But what if service members don't want spousal SGLI coverage? No problem -- opt out of the Veterans Administration-sponsored coverage.

Kopang said troops who don't want spousal SGLI coverage need to visit their military personnel office to fill out and submit an "8286A" form. The forms are also available on the VA Web site: www.insurance.va.gov/sglivgli/sglifam.htm. Those who cancel in time will be reimbursed for any premiums inadvertently withheld from their pay.

Members should carefully weigh their choice, Kopang advised, especially if they currently have no spousal insurance.

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