Air Force

May 2, 2014

SGLI Premium Adjustment Effective July 1, 2014

The Servicemembersí 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 membersí 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 by half a cent per $1,000 of insurance. 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 a month.
The new premium rate will take effect on 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 in 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.


 
 

 

News Briefs August 28, 2015

Run with History postponed Edwards Air Force Base’s 2nd Annual†Run with History half marathon, 10K and 5K run has been postponed until further notice. For more information, call the Rosburg Fitness Center at 661-275-GYM1 (4961). Mandatory Chief’s Panel The Chief’s Panel (enlisted call) originally scheduled for Aug. 28 has been moved to Oct. 5. The...
 
 
Air Force photograph by Tech. Sgt. Ryan Crane

U.S. Airman recognized as ‘hero’ in Paris

Air Force photograph by Tech. Sgt. Ryan Crane Airman 1st Class Spencer Stone (right), Aleksander Skarlatos and Anthony Sadler pose for a photo in Paris Aug. 23, 2015, following a foiled attack on a French train. Stone was on va...
 
 

Challenge yourself: Never give up, never quit

I once read that newly created cells in our bodies do one of two things: they either begin to decay or they become more vital. These cells choose their path based on what we demand of them. If we are sedentary, our brains signal our cells to decay; but if we exercise, our cells get...
 

 
U.S. Air Force photo by Scott M. Ash

AF Senior leaders give State of the Air Force address

U.S. Air Force photo by Scott M. Ash Secretary of the Air Force Deborah Lee James provides an update with Air Force Chief of Staff Gen. Mark A. Welsh III on current Air Force operations during a press briefing in the Pentagon, ...
 
 
Air Force photograph by Jet Fabara

Edwards AFB Express drives for value at the pump

Air Force photograph by Jet Fabara The Edwards AFB Exchange Express Gas Station. According to gasbuddy.com, gas prices could dip to below $2 a gallon by Thanksgiving. As the cost of gas continues to plummet, the Exchange wants ...
 
 
weed-zapper

Air Force, Ohio, based business develop chemical-, herbicide-free weed zapper

Good Neighbor, Inc. photograph by Ben Edwards Anyone with a lawn or a beautiful flower or vegetable garden, has surely wondered about the best method of controlling or eliminating weeds. Using chemicals and herbicides can help,...
 




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=""> <s> <strike> <strong>