Final answer:
The Servicemember's Group Life Insurance (SGLI) deduction stops when the servicemember separates from the military. SGLI is separate from retirement insurance like Social Security, which servicemembers may contribute to for long-term benefits, and it's tied to the status of active military service.
Step-by-step explanation:
The Servicemember's Group Life Insurance (SGLI) deduction stops at the end of the month when the member separates from the military.
SGLI is a program that provides life insurance coverage to eligible military personnel. It's important to note that reaching retirement age or becoming eligible for a new insurance plan does not automatically stop SGLI deductions.
Moreover, a promotion within the military does not affect the status of SGLI coverage. Once a servicemember separates from the military, they are no longer part of the SGLI program, and thus, the payroll deductions cease.
When comparing SGLI to other programs like Social Security, which offers retirement insurance and other benefits such as disability payments and supplemental income through Supplemental Security Income (SSI), the difference lies in the eligibility criteria and the event of separation from service.
While Social Security provides long-term benefits based on a worker's contributions over a lifetime, and eligibility is typically triggered by reaching retirement age, SGLI is a group-term life insurance benefit specifically for servicemembers, active until their service ends.