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Life Insurance

Part III: Reducing FSGLI Coverage

General Information

If a Servicemember chooses to have less than the maximum spouse coverage of $100,000, a lower coverage level can be elected. Lower coverage levels range from $90,000 to a minimum of $10,000, in increments of $10,000. Spouse coverage cannot exceed the level of the member's coverage.

Only the spouse FSGLI coverage can be reduced. The dependent child coverage level is fixed at $10,000 and there is no premium paid.

Reducing FSGLI Spouse Coverage Level

The level of spouse coverage is affected by the following two events:

  1. Servicemember elects to reduce his/her own SGLI coverage level to less than $100,000, or to less than the FGSLI coverage level
  2. Servicemember elects to reduce FSGLI spouse coverage

1. Servicemember elects to reduce SGLI coverage (SGLV Form 8286)

If a Servicemember elects to reduce his/her SGLI coverage to less than $100,000, or to less than his/her FSGLI coverage level, the level of FSGLI spouse coverage is automatically reduced.

If the Servicemember chooses to have SGLI coverage of less than $100,000, the Servicemember should also complete an SGLV Form 8286A to reflect a reduction in FSGLI coverage level. This is so action can be taken to reduce his/her FSGLI premium deduction amount. (However, FSGLI spouse coverage cannot, by law, exceed the level of the member's coverage, even if a SGLV Form 8286A is not completed.)

DMDC SGLI Web site Note (for Army, Navy & Air Force): When the Servicemember completes SGLV Form 8286 to reduce SGLI and SGLV Form 8286A to reduce Family spouse SGLI, the FSGLI reduction should be processed in the DMDC SGLI Web site to reduce the FSGLI premium deduction amount.

If the form is completed on the day of induction, then the reduced coverage level begins immediately and the lower premium rate begins immediately. If the form is completed after the date of induction, the lower coverage level will take effect the first day of the month following the date his/her unit received the election. The lower premium also takes effect the first day of the month following the receipt of the form by his/her unit.

Example: A Servicemember has $400,000 of coverage and $100,000 of FSGLI coverage. On October 8, 2005, the Servicemember gives his/her unit a SGLV Form 8286 to reduce his/her SGLI coverage to $50,000. A SGLV Form 8286A must also be completed at the same time to reduce his/her spouse coverage to $50,000 or less. The new coverage levels and the new premiums begin on November 1, 2005.

2. Servicemember elects to reduce FSGLI spouse coverage (SGLV Form 8286A)

SGLV Form 8286A must be completed in order to reduce the FSGLI coverage level. Elections to reduce coverage take effect the first day of the month following the date the form is received by the Servicemember's unit. The new lower premium rate also begins the month following the date the form is received by the Servicemember's unit.

Spouse coverage reduced upon entry into service:

If a Servicemember wishes to reduce FSGLI spouse coverage, a SGLV Form 8286A must be completed. If the form is completed on the day of induction, the reduced coverage level and the lower premium rate begins immediately.

DMDC SGLI Web site Note (for Army, Navy & Air Force): While the Servicemember completes the SGLV Form 8286A on the day of induction, it cannot be processed in the DMDC SGLI Web site until the spouse is recorded in DEERS. As soon as the spouse is recorded into DEERS, the reduction of spouse coverage can be processed in the DMDC SGLI Web site. In some cases, because of the sequence and timing of these steps, premiums for the maximum coverage may be withheld from the month of induction into the service. Action should be taken to refund these premiums to the Servicemember. See Part VI for additional information about the interaction with DEERS and the DMDC SGLI Web site

Spouse coverage reduced upon marriage while in service:

If a Servicemember wishes to reduce FSGLI spouse coverage, when he/she is about to be married while in service, the Servicemember must submit SGLV Form 8286A to his/her unit prior to the marriage. Then the reduced coverage level and the lower premium rate begin immediately upon the date of marriage.

DMDC SGLI Web site Note (for Army, Navy & Air Force): While the Servicemember submits the SGLV Form 8286A to his/her unit prior to the marriage, it cannot be processed in the DMDC SGLI Web site until after the marriage, when the spouse is recorded in DEERS. As soon as the spouse is recorded into DEERS, the reduction in spouse coverage can be processed in the DMDC SGLI Web site. In some cases, because of the sequence and timing of these steps, premiums for maximum coverage may be withheld from the month of marriage. Action should be taken to refund these premiums to the Servicemember. See Part VI for additional information about the interaction with DEERS and the DMDC SGLI Web site

Existing spouse coverage reduced:

If after FSGLI spouse coverage has existed, the Servicemember wishes to reduce the level of coverage, a SGLV Form 8286A must be completed. The lower coverage level will take effect the first day of the month following the date his/her unit received the election. The lower premium also takes effect the first day of the month following the receipt of the form by his/her unit.

Example: A Servicemember has $200,000 of coverage and $100,000 of FSGLI coverage. On August 26, 2002, the Servicemember gives his/her unit a SGLV Form 8286A to reduce the spouse coverage level to $50,000 (with no change in his/her SGLI coverage level). The new FSGLI coverage level and premium begins on September 1, 2002.