Veterans

May 1, 2014

SGLI premium adjustment effective July 1

WASHINGTON (AFNS) – The Servicemembers’ Group Life Insurance program will adjust its monthly premium rate from 6.5 cents per $1,000 back to the 2006 rate of seven cents per $1,000 of insurance, a modest increase to ensure the SGLI program remains in a strong financial position.

The Department of Veterans Affairs continues to place the interests of service members first and foremost by keeping SGLI premiums as low as possible while also maintaining the necessary reserve levels to ensure funds are available to pay claims to service members’ beneficiaries. Since the start of the SGLI Program in 1965, monthly premiums have decreased from 20 cents per $1,000 to the current 6.5 cents per $1,000. There have been periodic increases and decreases, but over the past 30 years, premiums have fluctuated only 2.5 cents per $1,000 of insurance.

In order for the program to remain in good financial condition, it is now necessary to increase the premium rate. Since 2008, as a result of the half-cent reduction and decreases in interest rates, reserve funds have decreased. Insurance companies hold reserve funds to ensure they can pay future claims. It is common practice in the group insurance industry to adjust premium rates as reserve funds increase and decrease. VA also uses actuaries, individuals who deal with financial impact of risk, to conduct program experience studies when evaluating and adjusting reserve assumptions; and each year, an independent auditor verifies the accuracy of their reserve calculations.

For a service member with the maximum $400,000 of life insurance, this change will mean an increase of two dollars per month.

The new premium rate will take effect July 1, 2014. Individual ready reserve members who are drilling for points toward retirement or who do not receive pay for other reasons will be billed by their branch of service for the higher premium beginning July 2014. For information on the new rates, visit http://benefits.va.gov/insurance/sgli.asp.




All of this week's top headlines to your email every Friday.


 
 

 

Eliminating stigma: A leadership responsibility

WASHINGTON (AFNS) — As a child, a close relative of mine committed suicide. In those days, mental health was only discussed in hushed tones and little support was available. I was shaped by this experience and in my military career, I have tried to create an environment where people feel comfortable discussing their problems and...
 
 
(U.S. Air Force photo illustration by Airman 1st Class Alystria Maurer)

Dietary Supplements: Safety still an issue

SAN ANTONIO — Being a Servicemember is as physically demanding, at times, as being a professional athlete. As a result, Servicemembers are especially conscious of physical training requirements and the need to remain fit and ...
 
 

Air Forces Southern hosts first Aeromedical Symposium

(U.S. Air Force photo by Tech. Sgt. Heather R. Redman) Pararescuemen from the 48th Rescue Squadron at Davis-Monthan Air Force Base, Ariz., demonstrate casualty care to dozens of military medical professionals from Latin American nations Aug. 28. Air Forces Southern hosted the Aerospace Medicine Symposium as a multinational key leader engagement designed to strengthen aerospace...
 

 
(U.S. Air Force photo by Maj. Brandon Lingle)

D-M pararescuemen hone skills in Bagram’s excess structures

BAGRAM AIRFIELD, Afghanistan — Pararescuemen from the 83rd Expeditionary Rescue Squadron, Bagram Airfield, Afghanistan, participated in a mission rehearsal where they practiced breaching, clearing, patient care and egress...
 
 

Tuition assistance program changes Oct. 1

LUKE AIR FORCE BASE, Ariz. — Effective Oct. 1, new changes will go into effect that impact the Air Force Tuition Assistance Program. Personnel using the TA program will now be required to pass all undergraduate courses with a grade of “C” or higher. A grade of “D” will be considered a failing grade and...
 
 

Suicide prevention more than a month-long campaign

WASHINGTON (AFNS)  — All Airmen have a responsibility that lasts much longer than a one-month campaign. This responsibility extends beyond ourselves and includes our work environment, our families, friends, fellow Airmen and our communities. While Suicide Prevention Month is observed across the United States in September, the month-long event is a reminder of everyone’s 24/7,...
 




0 Comments


Be the first to comment!


Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>


Directory powered by Business Directory Plugin