equal monthly payments.   Otherwise, the beneficiary may  choose  the  mode  of  settlement.    If  you  do  not designate  a  beneficiary,  your  insurance  will  be  paid automatically in the following order of precedence: 1.   Your spouse 2.   Your child or children in equal shares, with the share of any deceased child distributed among the descendants of that child 3.   Your   parents   in   equal   shares   or   the   entire amount to the surviving parent 4.   The duly appointed executor or administrator of your estate 5.   Your next of kin under the laws of your state or domicile at the time of your death If  you  do  not  want  your  insurance  paid  in  the above order, you must designate a beneficiary.   Such designation, to be valid, must be in writing, over your signature, and received in the personnel office before your death. Please note that your Record of Emergency Data (NAVPERS  1070/602)  substantiates  the  designation of a beneficiary for unpaid pay and allowances, death gratuity, and the like.   However, it  does not  serve to designate  a  beneficiary  to  receive  the  proceeds  of Servicemen’s Group Life Insurance.  Also, note that if you   have   no   surviving   spouse   or   children,   the proceeds   of   the   insurance   are   paid   to   surviving parents   in   equal   shares. This   provision   applies regardless  of  whether  parents  are  living  together  or are divorced.  A sole surviving parent will receive the entire   amount   of   the   insurance. As   long   as   both parents are living, they are entitled to an equal share of the insurance payment, unless the service member designates,  in  writing,  that  the  proceeds  should  be paid to only one of the parents. Proceeds are paid on the basis of Claim for Death Benefits (SGLV-8283).   When the Navy Department receives  notification  of  a  Navy  member’s  death,  it automatically  forwards  an  SGLV-8283  to  survivors. Payments of such benefits, made to or on account of a beneficiary, are exempt from taxation and the claims of   creditors. Payments   also   are   not   liable   to attachment, levy, or seizure by or under any legal or equitable  process  whatever,  either  before  or  after receipt by the beneficiary.   The above exemptions do not apply to collection of amounts due as premiums or the   taxation   of   property   purchased   out   of   such insurance   payments   or   to   levy   under   the   Internal Revenue Code of 1954 (relating to seizure of property for taxes). The SGLI Program is an excellent low-cost term insurance   program   to   supplement   the   survivor protection program of every active-duty member.   It also  offers  conversion  privileges  to  Veterans  Group Life Insurance (VGLI).   You are encouraged to retain full coverage under the SGLI Program while on active duty in the Navy. VETERANS GROUP LIFE INSURANCE (VGLI) Public  Law  93-289  also  provides  the  Veterans Group  Life  Insurance  (VGLI)  Program.    VGLI  is  a voluntary  program  that  provides  up  to  $100,000  of term  insurance  for  5  years  following  your  release from active duty or active Reserve participation.  You must   apply   for   the   insurance   within   120   days following   your   release   from   active   duty   by completing  the  application  form  and  sending  it  with the   first   month’s   premium   to   the   Office   of Servicemen’s Group Life Insurance (OSGLI).   At the end of the 5-year period following your release from active service, VGLI offers you the chance to convert to an individual policy.  You may choose one of many approved companies, who will write a new policy for you   without   evidence   of   insurability. Complete information is available at your personnel office. ADDITIONAL INSURANCE NEEDS Estimate  the  advantages  and  disadvantages  of various insurance policies solely from the viewpoint of providing the minimum requirements of financial protection  for  your  dependents  in  the  event  of  your untimely death.  You are the best judge of such needs; the decision should be yours and not that of the agent who   is   selling   the   insurance. Usually,   term   and ordinary  life  contracts  offer  the  younger  officer  the best solution to insurance problems.   You should also consider  insurance  through  the  Navy  Mutual  Aid Association.  This association offers many advantages other than insurance, such as assistance to survivors in  processing  claims  and  serving  as  a  repository  for important papers and documents. CAUTION:   Read   your   policies   carefully   to ensure   they   contain   no   war   or   aviation   exclusion clauses.   Many companies automatically add aviation exclusion  clauses  for  all  naval  personnel,  but  most good companies do not.   Avoid carrying policies that do not cover those risks associated with your work. 4-11