A policy cannot be issued for an amount greater than the amount of SGLI you had. The policies provide life insurance, but no disability or other supplemental benefits. If you die in service, the uniformed service will furnish to your beneficiary a form SGLV 8283, Claim For Death Benefits. If you did not designate a beneficiary, the proceeds will be paid in the order of precedence as provided by law. A new payment mechanism is now available to SGLI and VGLI beneficiaries.
Beneficiaries have a checking account opened in their name where insurance proceeds are deposited.
The beneficiary can then write checks for any amount they wish up to the full amount of the proceeds. This gives the beneficiary time to make important financial decisions, while their funds are secure and earn continuous interest at a competitive rate. This new service is Beneficiary Financial Counseling. It provides free, personalized, objective financial advice to SGLI and VGLI beneficiaries who choose to take advantage of the service. This service enhancement will be tested for one year to determine its effectiveness.