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.


 
 

 

479 selected for top enlisted rank

JOINT BASE SAN ANTONIO-RANDOLPH, Texas (AFNS) —  Of the 2,525 senior master sergeants eligible for promotion to chief, 479 were selected for an 18.97 percent selection rate, Air Force Personnel Center officials announced Nov. 20. To see the selection list, go to the Air Force Portal, or myPers. Airmen will be able to access their...
 
 

Turkey Bowl

Senior Airman Philip Taylor, Davis-Monthan Air Force Base Desert Lightning Team quarterback, dodges a Black Knights defensive player during the annual Turkey Bowl at Fort Huachuca, Ariz., Nov. 14. D-M’s Desert Lightning Team scored two touchdowns in the final 45 seconds leading them to win 18-7. Davis-Monthan Air Force Base Desert Lightning Team members line...
 
 

Resolutions aren’t just for the new year

EGLIN AIR FORCE BASE, Fla. — It’s almost that time of year when most of us will commit to reforming a habit, lifestyle or just change our lives for the better. It starts when we take a critical look at ourselves and determine what we can do, or stop doing, to make the improvements we desire. These...
 

 
DoD

AF tests first all-electric vehicle fleet in California

WASHINGTON (AFNS) — Air Force officials unveiled the Department of Defense’s first non-tactical vehicle fleet composed entirely of plug-in electric vehicles, Nov. 14, at Los Angeles Air Force Base, California. The rollout of the 42-vehicle fleet marks a milestone in the DOD’s demonstration of emerging technology and the vehicles will serve as a resource to...
 
 
(U.S. Air Force photo/ Senior Airman Jarrod Grammel)

Maintaining fitness standards during the holidays is important

VANCE AIR FORCE BASE, Okla. — During the holidays, going to the gym usually isn’t on the top of most peoples’ priority list. Priority is given to visiting families, planning vacations, and most important, indulging in...
 
 

Exchange keeps the ‘Thanks’ in Thanksgiving

DALLAS – With a quarter of its work force comprised of military family members, the Army & Air Force Exchange Service is a true example of family serving family. As such, the focus on Thanksgiving will be on family. “Exchange Main Stores in the Continental United States will be closed Thanksgiving, but open early Black...
 




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