Servicemember's Group Life Insurance Traumatic Injury Protection

The Servicemembers' Group Life Insurance Traumatic Injury Protection (TSGLI) provides payment of up to $100,000 to servicemembers who stustain certain severe losses, such as an extremity or eyesight. The law enabling this benefit was passed in 2005, and applies retroactively to October 7, 2001 for service in OIF/OEF, and to all service members serving anywhere after November 30, 2005. US Code Title 38 § 9.20

Everyone that is covered by Servicemembers’s Group Life Insurance (SGLI) is covered by TSGLI, and the premium is $1.00 per month ($1.00 per year for members on part time SGLI). The only way coverage for TSGLI can be refused is by refusing all SGLI coverage.

TSGLI is undergoing modification as of this writing (August 2008) and new losses and loss schedules are due to be published this fall. The coverage will be retroactive for losses, but the dates of the loss still must meet the dates listed above for coverage. The VA says it is reviewing all claims, but if you have a loss that you think is going to be covered you should contact your service department point of contact .

Eligibility

To be eligible for payment of TSGLI, you must meet all of the following requirements:

• You must be insured by SGLI.
• You must incur a scheduled loss and that loss must be a direct result of a traumatic injury.
• You must have suffered the traumatic injury prior to midnight of the day that you separate from the uniformed services.
• You must suffer a scheduled loss within 2 years (730 days) of the traumatic injury.
• You must survive for a period of not less than seven full days from the date of the traumatic injury. (The 7-day period begins on the date and time of the traumatic injury, as measured by Zulu [Greenwich Meridian] time and ends 168 full hours later).

Filing a Claim

In order to make a claim for the TSGLI benefit, the member (or someone acting on his or her behalf) should:

1. Download the TSGLI Certification Form GL.2005.261. You can also obtain this form from the your service department point of contact or from the Office of Servicemembers' Group Life Insurance.
2. Contact your service department point of contact to begin the certification process.

The certification form has three parts:

• Part A is to be completed by the service member or, if incapacitated, by the member's guardian, or the member's attorney-in-fact.
• Part B is to be completed by the attending medical professional.
• Part C is to be completed by the Branch of Service.

In some situations there will be a need to file more than one claim. Some losses are time based — for example, if the service member has Traumatic brain injury and is unable to perform daily living activities, there are up to 4 equal payments of $25,000 available. A separate claim must be made for each time period.

You may appeal denial of TSGLI based on circumstances of the loss or eligibility of the loss or whether or not TSGLI coverage existed. Contact the Office of Service Members Group Insurance (OSGLI) if the appeal is over existing coverage, and your service department point of contact for circumstances of or eligibility of the loss.

TSGLI Payments

TSGLI is tax free.

TSGLI payments will be made by one of the following methods:

• Electronic Funds Transfer (EFT) — Under this option, the TSGLI payment is electronically credited to the bank account specified by the service member. This option is available to the service member or the member's guardian or attorney-in-fact.
• Prudential's Alliance Account — Under this option, the service member will receive a checkbook for an interest–bearing account that gives the member ready access to the money. This option is available only to the service member. If the member is deceased, the member's SGLI beneficiary will receive payment via the Alliance Account.
• Check — Under this option, the service member's guardian or attorney–in–fact will receive a single check on behalf of the service member for the full TSGLI benefit payable. This option is available only to the service member's guardian or attorney–in–fact.

TSGLI is payable in the event of the service member’s death due to the tramatic injury, as long as the service member survived 168 hours (7 days) after the injury.

TSGLI has no effect on the Servicemember’s Group Life Insurance. Full benefits from SGLI will be paid whether or not TSGLI is paid.

Beneficiary Financial Counseling Services (BFCS) is an extra benefit offered to beneficiaries. Counseling services are provided by FinancialPoint®. To take advantage of the free BFCS benefit, contact FinancialPoint® toll free at (866) 476-5764 or by email at BFCS@FinancialPoint.com.