ANALYSIS OF THE SERVICEMEMBERS' GROUP LIFE INSURANCE (SGLI) PROGRAM: BACKGROUND, CURRENT EFFECTIVENESS, AND FUTURE POLICY CONSIDERATIONS
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Authors
Netzel, Ian
Bockenstedt, Bret J.
Subjects
SGLI
Servicemembers' Group Life Insurance
life insurance studies
retirement
Servicemembers' Group Life Insurance
life insurance studies
retirement
Advisors
Sullivan, Ryan S.
Date of Issue
2019-12
Date
Dec-19
Publisher
Monterey, CA; Naval Postgraduate School
Language
Abstract
This thesis provides an analysis of the Servicemembers' Group Life Insurance (SGLI) program to determine the best value for our servicemembers and their families. Our research examined the history and the implementation of the SGLI program and compared the program against the life insurance industry’s recommendations for adequate life insurance coverage. As a result of our analysis of the SGLI program, we determined that up to 478,894 servicemembers, or 37% of active duty on-hand strength, have insufficient life insurance coverage through the SGLI program. Our team has recommended three courses of action to tailor a servicemember’s life insurance coverage to their needs and provide more value to the servicemember. The first course of action is to adjust for inflation, raising the current maximum coverage of $400,000 to $550,000, rounding up from $522,521.38 to the nearest increment of $50,000. The second course of action is to allow servicemembers to obtain maximum coverage equal to five times their annual salaries, mirroring the Federal Employees Group Life Insurance (FEGLI) program. The third course of action is to allow servicemembers to obtain maximum coverage equal to ten times their annual salaries, aligning with industry standards and rules of thumb. If implemented, we strongly believe these courses of action in this study will provide sufficient death benefits to all active duty servicemembers in the Department of Defense.
Type
Thesis
Description
MBA Professional Project
Series/Report No
Department
Graduate School of Defense Management (GSDM)
Graduate School of Defense Management (GSDM)
Organization
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NPS Report Number
Sponsors
Funder
Format
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Distribution Statement
Rights
This publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.