Opting-out of SGLI not a good idea

  • Published
  • By Master Sgt. Tom Kimball
  • Air Reserve Personnel Center Public Affairs
DENVER --   For the price of a soda a day, a young Airman could have prevented his family's financial hardship caused by his recent unexpected death.

Even though the $27 a month Servicemembers' Group Life Insurance premium -- providing $400,000 in coverage -- is automatically deducted from Airmen's paychecks, they are able to decline. Senior Master Sgt. Ramon Roldan, Chief of the Air Reserve Personnel Center's Entitlements and Benefits, relayed the sad story of this airman basic who opted out of coverage.

"It was tough. We discovered while handling the case for the grieving family that a recruiter or his unit had talked him into opting out of SGLI because he was single, not making much money yet, and so young," Sergeant Roldan said. "Unfortunately, neither knew his time would come sooner than expected. The consequence was that the family missed the financial benefit that SGLI could have provided to them."

He pointed out that SGLI would have covered this Airman even though he was not on duty or deployed.

The truth is, talking about the SGLI benefit for Guard and Reserve Airmen can be uncomfortable. But whether you're pulling combat duty or kitchen duty or just driving around town, you never know when your time might come. And the question is: where would that leave your family?

ARPC officials are concerned that Airmen are not taking that question seriously enough. Airmen are opting out of SGLI coverage at alarming rates; in fact, more than 6,800 Airmen don't have any SGLI coverage and many more carry only partial benefits. SGLI coverage is automatic from the time of enlistment; you are not covered only if you submit a form to decline it.

Gloria Goodgain, Deputy Director, Personnel Programs Management at ARPC, urges Airmen to "make an informed decision about SGLI coverage."

For Ms. Goodgain, the legacy those who opt out leave their loved ones is not a happy one. "When folks are young, they think they're going to live forever," Ms. Goodgain said. "But of course, they don't. And all too often the tragedy we see here is that when a member passes away without any SGLI coverage, their loved ones are left with an expensive heartbreak on top of the loss of life."

Ms. Goodgain and Sergeant Roldan are both adamant about making sure all Airmen understand the consequences of terminating their coverage and the benefits of serving in uniform on or off duty with SGLI coverage.

"It's a mystery to me why you wouldn't want it," Sergeant Roldan said. "It's automatic when you are appointed or enlisted unless you otherwise decline. For just $27 a month, you have $400,000 in life insurance coverage. That rate rarely changes, and you're covered for your entire career."

Opting back into SGLI or increasing coverage to full benefits requires a commander's approval and sometimes a medical screening, officials said.

Sergeant was quick to point out that in a typical 20-year hitch, that's only about $6,480 for life insurance that accepts you without a medical examination. He also said that $1 of that monthly amount provides up to an additional $100,000 in traumatic injury coverage. So whether you die or suffer a traumatic injury -- on- or off-duty -- SGLI has you covered.

And for a small amount more, spouses are automatically covered with Family SGLI.

"What's $27 for peace of mind? Believe me," Ms. Goodgain added, "the families and spouses who call here are almost always surprised to find out -- after the fact -- that a member had declined the coverage early in their career. It's sad; just to save a few bucks."

And according to Goodgain, what ensues is anything but peaceful.

The DPP folks are trained to answer any questions about entitlements and benefits. They serve as wingmen and are keenly sensitive to keep Airmen and their families' best interests in mind.

This day, as they do every day, they were earnestly talking about why it's important not to gamble with your life insurance. "Look, this is not a sales pitch, we're not pushing life insurance," Ms. Goodgain continued. "The message we want everyone to hear is that for the price, you can't get any better coverage anywhere at any time."

For more information or to speak with a counselor, call 800-525-0102 and ask for the Entitlements and Benefits office. Your wingman is waiting to assist you.