Thinking About Canceling Your SGLI Prior to Separation to Save a Few Dollars? Don't do it!

According to the U. S. Department of Veterans Affairs some Personnel Officers are advising Servicemembers to cancel their Servicemembers' Group Life Insurance (SGLI) coverage months or weeks, before their separation date in order to save on premium payments.

This is not good advice. It is imperative that all Personnel Officers and Servicemembers be aware that cancelling SGLI prior to their separation date carries several negative consequences that far outweigh any short-term cost savings.

For example, if a Servicemember cancels SGLI prior to separation from service, then that member:

• Cannot receive 120 days of SGLI coverage at no cost following separation from service (a benefit that all Servicemembers receive when they separate with SGLI coverage intact).
• Cannot apply for an additional two years of SGLI coverage at no cost through the SGLI Disability Extension Program if they are totally disabled.
• Cannot obtain Veterans' Group Life Insurance (VGLI) coverage, which is available without proof of good health for 240 days after separation and can be retained for life.
• Will be cancelling Family SGLI Coverage for his/her spouse and children for the member's remaining time in service and for the 120-day free period after separation.
• Will be cancelling SGLI Traumatic Injury Protection (TSGLI) and cannot receive a TSGLI payment for qualifying traumatic injuries that occur prior to separation.

Personnel Officers should advise any member who may be considering cancelling their SGLI coverage about the negative consequences listed above.