Department of Defense

Unrecovered SGLI Insurance Debt for Reserve and Natl Guard

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The current unrecovered debt for DOD SGLI payments to Reservists and Natl Guard members who drill for points (all services) is nearly $20 million. Annual postage costs are nearly $20,000.


A number of Reserve and Natl Guard members from all services drill for points only (so their pay cannot be checked). Each service fronts money for these members to receive SGLI. DFAS sends out thousands of letters and other correspondence in an effort to bill these members each month. Often times, letters come back because the addresses are bad, and others are just never responded to. In the meantime, these members are getting free insurance that an Active Duty member pays for and that they may not even want.


Regulations should change so the services don't pay out these premiums up front. If a drilling Reservist or Natl Guard member (points only) wants SGLI, they should sign up and pay an annual premium when they report for their drill. This would ensure that only those who want it get it, and not leave the government to pay their bill. This would save the government a lot of money in uncollected premiums and postage. If this policy is not changed, this debt amount will just continue to grow.

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Idea No. 11083