The coverage

As many of you know servicemembers are entitled to $250,000 insurance coverage under Servicemembers Group Life Insurance (SGLI) and since 2001 additional coverage up to $100,000 was made available to the spouses of servicemembers under Family SGLI (FSGLI).

FSGLI enrollment is automatic—the only way to not have this coverage is to specifically decline it.  It is important to note however that FSGLI has a FREE $10,000 coverage on the children of servicemembers, and this coverage will remain even though the servicemember elects to decline spousal coverage.

Before rushing out and electing to decline the FSGLI spousal coverage, the servicemember should be aware that the FSGLI’s premium for the additional $100,000 is relatively inexpensive when compared to other similar life-insurance policies.  The average premium payment for FSGLI is about $7/month or $84/year.  Thus, FSGLI when combined with SGLI will give the surviving military spouse a total benefit of $350,000. 

The problem

FSGLI enrollment is automatic but the FSGLI premium payments are not!  If the spouse is not registered in DEERS, as in the case of most dual-military families, premiums will not be withheld from the servicemember’s pay.  DFAS is recognizing these unpaid premiums as indebtedness to the Government and will eventually be collected retroactively.

Consequently, if you are a dual-military member that did not elect to decline FSGLI coverage or did not enroll your spouse into DEERS and have not been paying the FSGLI insurance premiums, then you may receive your notice of indebtedness sometime this year. Dual-military families should be prepared to pay anywhere from $600 to $1,000 in past due premiums. 

What can you do?

If you are one of the families that receive a statement from DFAS stating that you owe money for past-due FSGLI, then you may do one or all of the following: enroll your spouse into DEERS (both servicemembers); file for a waiver of indebtedness (only after you have received a notice of indebtedness from DFAS); seek out additional advice through your command or the Naval Legal Service Office (NLSO). Get this information out to every dual-military servicemember you know.

Unfortunately, DFAS’s current policy is still to make the dual-members pay retroactively for past due premiums and as of now have not been approving waivers.  As a result, the purpose of this letter is to inform all dual-military servicemembers of this issue ahead of time so that servicemembers may begin to prepare accordingly. It can’t be emphasized enough the importance of this matter and to allocate appropriate finances for this soon approaching debt.

What forms do I need?

The two most important forms that you will need are (1) DD form 2789, Waiver/remission of Indebtedness Application, and (2) SGLV 8286A, Family Coverage Election form.  You will submit the DD form 2789 to PSD only after you receive your notice of indebtedness.  The SGLV 8286A form may be submitted to PSD anytime to stop the FSGLI coverage.  These forms are available at your local PSD or NLSO offices. 

Branch Office Everett (425) 304-4551; Branch Office Whidbey Island (360) 257-2126/2127; Branch Office Bangor (360) 396-6003; Bremerton Office (360) 476-2156.