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Family SGLI Procedures Guide
General Information
Reducing FSGLI Spousal Coverage Level
If a service member chooses to have less than the maximum spousal 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. Spousal coverage cannot exceed the level of the member's coverage.
Only the spousal FSGLI coverage can be reduced. The dependent child coverage level is fixed at $10,000 and there is no premium paid.
The level of spousal coverage is affected by the following two events:
- Service member elects to reduce his/her own SGLI coverage level to less than $100,000 or to less than the FGSLI coverage level
- Service member elects to reduce FSGLI spousal coverage
If a service member 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 spousal coverage is automatically reduced.
If the service member chooses to have SGLI coverage of less than $100,000, the service member 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 spousal 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 service member completes SGLV Form 8286 to reduce SGLI and SGLV Form 8286A to reduce Family spousal 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 service member has $400,000 of coverage and $100,000 of FSGLI coverage. On October 8, 2005, the service member 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 spousal coverage to $50,000 or less. The new coverage levels and the new premiums begin on November 1, 2005. |
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 service member's unit. The new lower premium rate also begins the month following the date the form is received by the service member's unit.
If a service member wishes to reduce FSGLI spousal 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 service member 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 spousal 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 service member. See Part VI for additional information about the interaction with DEERS and the DMDC SGLI Web site |
If a service member wishes to reduce FSGLI spousal coverage, when he/she is about to be married while in service, the service member 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 service member submits the SGLV Form 8286A is submitted 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 spousal 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 service member. See Part VI for additional information about the interaction with DEERS and the DMDC SGLI Web site |
If after FSGLI spousal coverage has existed, the service member 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 service member has $200,000 of coverage and $100,000 of FSGLI coverage. On August 26, 2002, the service member gives his/her unit a SGLV Form 8286A to reduce the spousal 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. |
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