How Does Army Life Insurance Work? 
The Army enrolls you in $ 400,000 of SGLI -LRB- Servicemembers Group Life Insurance -RRB- when you enter the service . This is term insurance that can be changed to VGLI -LRB- Veterans Group Life Insurance -RRB- when you separate from the Army . You will pay group rates for your SGLI coverage . If you do not want to keep it all , you can reduce the coverage amount in increments of $ 50,000 . 