The beneficiary should include a copy of the death certificate with the claim. The proceeds are paid to the beneficiary either in one lump sum or in 36 equal installments, according to how the insured specified that they were to be paid. If the insured specified that the proceeds were to be paid in one lump sum or did not specify a method of payment, the beneficiary may choose to receive either 36 equal installments or one lump sum. However, if the insured specified that the proceeds were to be paid in 36 equal installments, the beneficiary may not choose to be paid in one lump sum. 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.