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, 2014

Blood drive The next American Red Cross Blood Drive at Edwards AFB is 10 a.m.-4 p.m., Sept. 3 in the Chapel 1 Annex. Both walk-ins and appointments are accepted. To make an appointment you may contact the blood drive coordinators:†Senior Airman Joe Hernandez at joe.hernandez.8@us.af.mil or Senior Airman Sarah Bird at sarah.bird.2@us.af.mil. You may also...
 
 

Notice of intention to appoint school board trustee

Due to a lack of sufficient candidates for the upcoming school board election for Trustee Area #2, Office B, the Board of Trustees of the Muroc Joint Unified School District intends to appoint a qualified individual to the Board of Trustees, pursuant to Education Code section 5326. Applicants must be 18 years of age or...
 
 

New paradigm aims to ‘zeroize’ sexual assault

Why does the U.S. Air Force need a Sexual Assault Awareness Month? Is it really a problem? Isn’t sexual assault more prevalent outside the military? Where do these statistics come from anyway? Is it realistic to aim for zero assaults? Thankfully, these outrageous questions represent the vestiges of a retreating mindset. A new paradigm aims...
 

 
nasa-obit

Former NASA Astronaut Steven Nagel, veteran of four shuttle flights, dies at 67

Former NASA astronaut Steven R. Nagel, who served as a mission specialist on his first space shuttle flight, pilot on his second and commanded his final two, died Aug. 21 after a long illness. He was 67 years old. After his las...
 
 
Air Force graphic by Rebecca Amber

Being prepared in earthquake country

Air Force graphic by Rebecca Amber For National Preparedness Month, this September, the Edwards AFB Office of Emergency Management is focusing on Califorina’s most prominent natural disaster – earthquakes. Throughou...
 
 
af-band

Air Force Band of the Golden West

  Travis Brass, the multi-talented brass group of the U.S. Air Force Band of the Golden West will be performing in the area Sept. 5-7. Sept. 5, the group will be at the Santa Clarita Performing Arts Center, 26455 Rockwell ...
 




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>