What does SGLI stand for, and what is its purpose?

The correct answer identifies SGLI as Servicemembers Group Life Insurance, which is indeed a voluntary term life insurance program. This program provides low-cost life insurance coverage to eligible servicemembers, including those on active duty, reservists, and members of the National Guard. SGLI offers a significant amount of coverage, up to a specified limit, which can be incredibly beneficial in providing financial security for the servicemember's beneficiaries in the unfortunate event of death.

The term "voluntary" indicates that while the coverage is available to servicemembers, participation is not mandatory; individuals have the choice to opt in or out based on their personal needs and circumstances. This aspect differentiates SGLI from programs that might be mandatory or that imply an automatic enrollment.

Recognizing the distinct terminology and the nature of the insurance is essential in understanding the program's intent and benefits, as SGLI serves to address the unique risks associated with military service while actively engaging the servicemembers in the decision-making process regarding their life insurance needs.