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.


 
 

 
U.S. Air Force photo by Tech. Sgt. Chrissy Best

Losing sleep: CSAF shares what keeps him up at night

U.S. Air Force photo by Tech. Sgt. Chrissy Best Air Force Chief of Staff Gen. Mark A. Welsh III speaks with 501st Combat Support Wing Airmen during an all call at Royal Air Force Croughton, England, July 16. Welsh explained the...
 
 

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...
 
 

Northrop Grumman demonstrates open mission systems architecture across manned, unmanned systems

PALMDALE, Calif.–Northrop Grumman demonstrated in recent test flights that the U.S. Air Force’s Open Mission Systems architecture standards can be successfully integrated across multiple systems and platforms. These flights have paved the way for new capabilities to be integrated rapidly and affordably across advanced manned and unmanned aircraft. In June, at Edwards Air Force Base,...
 

 

AF continues to work with DOD, OPM on cybersecurity incident

The Air Force maintains its commitment to protect personal information from cyber threats by continuing efforts with the Defense Department and the Office of Personnel Management to assist those impacted by the recent cyber incident involving federal background investigation data. OPM and an interagency response team, including investigators from the FBI and the Department of...
 
 
Untitled-1

New AFMC mission, vision statements emphasize agility

New mission and vision statements are the foundation of a new command strategy designed to push Air Force Materiel Command to be more agile as it delivers war-winning support to the warfighter. The command’s new mission s...
 
 
Comm-CofC

New commander online with 412th Communications Squadron

Air Force photograph by Edward Cannon From left: Col. Eric Leshinsky, 412th Mission Support Group commander, and Lt. Col. J. Scott Fuller pose for a photo as Lt. Col. Christopher Budde looks on. Budde relinquished command of th...
 




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>