Overview of Reserve Life Insurance
The US Army Reserve offers service members and their families a range of life insurance products designed to provide financial security in the event of death. These programs are administered through the Department of Veterans Affairs (VA) and the Federal Employees' Group Life Insurance (FEGLI) system, with eligibility tied to enlistment status, rank, and length of service.
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Primary Programs
Two main policies cover most reservists:
- Servicemembers' Group Life Insurance (SGLI) – a low‑cost, term policy automatically available to active‑duty personnel and reservists while they are in a drill status.
- Veterans' Group Life Insurance (VGLI) – a conversion option that lets former reservists keep coverage after leaving service, up to 20 years.
SGLI Details
SGLI provides up to $400,000 of coverage with a uniform premium of $0.06 per $1,000 of coverage per month. Reservists can elect any amount in $50,000 increments, and the policy remains in force as long as they maintain drill status and submit annual election forms. Beneficiaries receive a tax‑free death benefit, and the policy can be transferred to a family member upon the service member's death.
Eligibility and Enrollment
All Army Reserve soldiers who are in a Ready Reserve status (including Selected Reserve, Individual Ready Reserve, and National Guard) are eligible. Enrollment occurs during the annual Open Season (typically March‑May) or when a reservist first joins the Reserve. The process is completed online through the VA's eBenefits portal or via paper forms submitted to the unit's personnel office.
VGLI Conversion
When a reservist separates from service, they have 120 days to apply for VGLI, extending coverage for up to 20 years. VGLI premiums are higher than SGLI because they reflect the reservist's age at conversion and the amount of coverage selected. The maximum VGLI benefit mirrors SGLI's $400,000 cap, but the cost increases roughly $0.45 per $1,000 of coverage for each year of age.
Key Considerations
VGLI is not automatically renewed; reservists must pay premiums annually to keep the policy active. If premiums lapse, the coverage ends, and the reservist may need to seek a new private policy, which could be more expensive due to health underwriting.
Supplemental Options
Reservists who need higher limits or additional riders can explore two supplemental avenues:
- FEGLI – available to reservists who are also federal employees, providing basic and optional coverage tiers.
- Private Life Insurance – commercial policies can fill gaps, especially for those seeking cash‑value or whole‑life features not offered by SGLI/VGLI.
Cost Comparison
| Program | Maximum Coverage | Monthly Premium (approx.) | Eligibility |
|---|---|---|---|
| SGLI | $400,000 | $24 (for full amount) | All reservists in drill status |
| VGLI | $400,000 | $30‑$70 (age‑dependent) | Separating reservist, 120‑day application window |
| FEGLI | Varies | Variable, based on federal salary | Reservist who is a federal employee |
How to Enroll or Convert
1. Log into the VA's eBenefits portal or obtain paper forms from your unit. 2. Choose the desired coverage amount in $50,000 increments for SGLI. 3. Submit the election form before the annual deadline or within 10 days of a status change. 4. Upon separation, apply for VGLI within 120 days via eBenefits, providing proof of service and selecting coverage. 5. Pay the first premium promptly to activate VGLI.
Maintaining Coverage
Both SGLI and VGLI require annual verification. Reservists should update beneficiary information after major life events and keep contact details current in the VA system. Missing a payment or deadline can result in loss of coverage, so setting calendar reminders is advisable.