Who Receives SGLI Benefits When No Beneficiary Is Designated?
When a servicemember covered under the Servicemembers’ Group Life Insurance (SGLI) program passes away, the expectation is that the life insurance proceeds will go to the individual listed on the official SGLI Beneficiary Election Form. However, many families face a devastating surprise: no beneficiary was ever designated, the form was incomplete, or multiple people claim to be the rightful recipient. These disputes can delay benefits for months and often lead to legal battles between surviving spouses, former spouses, children, or other family members.
As life insurance lawyers who frequently handle SGLI beneficiary disputes, we see these issues arise more often than most families realize. Understanding what happens when no beneficiary is listed—and how the law handles competing claims—is essential for anyone facing this situation.
Why SGLI Beneficiary Disputes Happen
SGLI beneficiary conflicts typically arise when:
Two or more individuals file competing claims
The beneficiary designation form is blank, outdated, or incorrectly completed
The servicemember experienced a major life change (marriage, divorce, birth of a child) and never updated the form
Government records contradict each other
The family does not agree about the proper beneficiary
The SGLI office cannot determine who the servicemember intended to receive the benefit
The most common scenario occurs when no beneficiary is designated at all. If the SGLI Election Form lacks a named beneficiary, the insurance company cannot rely on “intent”—they must follow federal law.
This is where the Servicemembers’ Group Life Insurance Act (SGLIA) comes into play.
The SGLI Order of Precedence: Who Gets Paid When No Beneficiary Is Listed
When a servicemember did not designate a beneficiary, the SGLI program pays according to a strict, legally mandated order of precedence under federal statute (38 U.S.C. § 1970). The benefits must be paid in the following sequence:
The widow or widower (legal spouse)
The children of the servicemember, in equal shares
The parents
The executor or administrator of the estate
The next of kin, as determined by the laws of the servicemember’s state of residence
This order is not optional. The government and the insurer must follow it—even if another person claims the servicemember “promised” them the benefit, even if the family disagrees, and even if an outdated document lists someone else.
When Family Records Create Conflicting Claims
Even though the order of precedence seems straightforward, real-life circumstances often complicate matters.
Common sources of confusion include:
• Former spouse vs. surviving spouse
In some cases, both a current spouse and a former spouse claim that they fall under the “widow/widower” category. Errors often stem from:
Outdated Army Record of Emergency Data Forms
Old DD93 forms listing a former spouse
Applications for Allotment showing “single” status
Conflicting marriage or divorce records
Unreported remarriages
These conflicting records often cause delays or result in the insurer interpleading the funds into federal court for a judge to decide.
• Conflicting government forms
Servicemembers routinely complete multiple forms during their careers. These may include:
SGLI Election Forms
Record of Emergency Data
Dependency applications
Allotment forms
DEERS information
If these documents contradict each other, the insurer must investigate.
• Missing or outdated documentation
The military may have outdated marital records, missing divorce decrees, or unreported family changes. This puts claimants in the position of having to prove their legal relationship to the servicemember.
Why Many Families Lose SGLI Benefits Without Legal Representation
After the death of a servicemember, grieving families are often overwhelmed with funeral arrangements, financial burdens, and administrative tasks. Many beneficiaries:
Do not understand the federal laws governing SGLI
Feel intimidated communicating with the government
Do not challenge questionable denials
Assume that the government’s records are accurate
Do not know how to update or correct flawed documents
Give up after the insurer claims another person is higher in the order of precedence
Unfortunately, insurance companies and government agencies rely heavily on paperwork—and paperwork is often wrong. When families do not push back, they may lose benefits they are legally entitled to receive.
The Insurance Company’s Duty in SGLI Disputes
Importantly, it is not solely the family’s obligation to sort out beneficiary inconsistencies. The insurer has a legal duty to:
Maintain accurate records
Resolve contradictions
Notify claimants of unclear or conflicting documents
Conduct an investigation when the proper beneficiary is uncertain
Avoid paying benefits until the rightful beneficiary is confirmed
If the insurer cannot determine the correct recipient, it must notify all claimants and may deposit the funds with the court in an interpleader action. At that point, the competing claimants must present their arguments to a judge.
How an SGLI Attorney Helps in These Cases
A knowledgeable SGLI lawyer is often the only way families can successfully navigate competing claims or wrongful denials. Our attorneys handle every aspect of the process, including:
1. Investigating conflicting records
We obtain and analyze:
SGLI Election Forms
Marriage certificates and divorce decrees
DD93 forms
Military personnel records
DEERS data
VA records
Pay and allotment forms
We determine which documents are binding under federal law.
2. Correcting government errors
If the military misclassified a relationship or failed to update marital status, an attorney can work with agencies to correct the record.
3. Proving legal entitlement
Whether you are a surviving spouse, child, or next of kin, we gather the evidence needed to confirm your rightful position in the order of precedence.
4. Handling appeals and litigation
If the insurer denies the claim or files interpleader, we:
Prepare legal briefs
Present your case in court
Challenge improper beneficiary designations
Fight attempts by competing claimants
SGLI cases often involve complex factual and legal issues that families are not equipped to handle alone.
Common Situations Leading to SGLI Disputes
Some of the most frequent complications we see include:
A servicemember divorced and remarried but never updated paperwork
A former spouse claiming they were still legally married
Children from a previous relationship disputing the spouse’s status
Estranged parents filing competing claims
Conflicting information in military personnel files
Blank or unsigned beneficiary forms
Incomplete or lost SGLI Election Forms
Clerical errors made by military personnel offices
Because SGLI is governed by federal law, state divorce orders or private agreements do not override the SGLIA unless they comply with strict federal requirements.
Why You Should Not Fight an SGLI Denial Alone
When faced with an SGLI denial, many beneficiaries feel helpless. Some assume the government’s decision is final. Others do not understand why the claim was denied at all. The reality is:
Many denials are wrong
Many disputes arise from simple clerical mistakes
Many families receive benefits only after legal intervention
Our SGLI lawyers have helped countless families recover benefits even after the insurer claimed another person was entitled to the payout.
We understand the emotion and stress involved in losing a loved one who served. Our role is to protect your rights, challenge inaccurate documentation, and secure the benefits your family deserves under federal law.
Our Law Firm’s Commitment to SGLI Beneficiaries
We have represented dozens of beneficiaries in SGLI disputes involving no designated beneficiary, competing claims, outdated military records, and wrongful denials. Our mission is simple:
Protect the rights of military families
Ensure the SGLI insurer follows federal law
Fight aggressively for the rightful beneficiary
We work on a contingency fee basis, meaning you pay nothing unless we win. After securing your benefits, we discuss a fee structure that is fair and comfortable.
If you are facing a denied or disputed SGLI claim, do not give up. You have rights—and we can help.
Get a Free Consultation
If your SGLI claim was denied or you are involved in a beneficiary dispute, call us at (888) 510-2212 to speak with an experienced SGLI attorney.
We are here to guide you, protect your rights, and fight for the benefits your loved one intended for you.
