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 July 24, 2014

Webster fall classes Webster University will be running the following classes this upcoming fall terms: FINC 5000 Finance, Aug. 17-Oct. 16, Wednesdays 5:30-9 p.m.; and FINC 5880 Advanced Corporate Finance; Oct. 19-Dec. 19, Wednesdays from 5:30-9:30 p.m. Each term/class will have the same 10 students for both classes. Call 661-258-8501 or visit Webster University at...
 
 
edwards-F35a

Joint Strike Fighter ITF ground testing F-35 gun

Lockheed Martin photograph by Darin Russell An F-35A, tail number AF-2, fires a burst of rounds down range at the Gun Harmonizing Range July 17. The F-35 Joint Strike Fighter Integrated Test Force at Edwards AFB is in the proce...
 
 

The unseen leader

Over the years, I’ve seen many leaders come and go. The ones I admired, I took note of the traits I wished I had, as well as the ones I already possessed. It took me a long time to realize some of my personal and professional weaknesses were the very areas I gravitated toward in...
 

 
Air Force photograph by Patric Lovato

Outdoor Rec provides excursions, arsenal for summer activities

Air Force photograph by Patric Lovato Members of the Edwards AFB Outdoor Recreation staff pose with one of ODR’s new paddle boards. ODR offers anything from surfboards and wet suits to mountain bikes and kayaks for your s...
 
 

NASA’S American Eatery (Bldg. 4825)

July 27-30 Lunch Specials 10:30 a.m. to 1 p.m. Monday Three pieces fried chicken Mashed potatoes and gravy Vegetables Tuesday Pork carnitas Refried beans and Spanish rice Wednesday Pepper steak over white rice Thursday Teriyaki chicken Fried rice and egg roll Friday Bake cod Macaroni and cheese Broccoli All Blue Plate Specials — $7.89 Drink...
 
 

Final rule puts more teeth into Military Lending Act

The Defense Department July 21 closed loopholes to protect U.S. men and women in uniform from predatory lending practices, President Barack Obama said this morning at the 116th Veterans of Foreign Wars National Convention in Pittsburgh, Pennsylvania. The heightened level of financial and consumer-rights protection against unscrupulous practices, called the final rule of the Military...
 




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>