What is SGLI and what effect does it have on pay?

• A. Servicemembers' Group Life Insurance; it is a voluntary deduction reducing net pay by the premium amount.
• B. Servicemembers' General Liability Insurance; it increases pay.
• C. Service Garrison Living Initiative; it has no pay effect.
• D. Special Government Leave Insurance; it increases net pay.

Answer: (A)

SGLI stands for Servicemembers' Group Life Insurance, a low-cost life insurance program for military members. The cost is paid through payroll deductions, so the premium is taken from your pay, reducing your net take-home pay by that amount. You can choose to participate or decline, and you can adjust coverage to change the deduction accordingly.