Veterans

May 1, 2014

SGLI premium adjustment effective July 1, 2014

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.


 
 

 
Untitled-1

Seven little known facts about Memorial Day

As Americans get ready to observe Memorial Day with travel, family get-togethers and celebrations, let us not forget—it’s not about the BBQ. Memorial Day is observed specifically to remember those who gave the ultimate sacr...
 
 

Increased mission requirements open doors for continued military service

WASHINGTON (AFNS) — The Air Force is introducing several personnel and manpower initiatives to meet increased mission requirements outlined in the fiscal year 2016 President’s Budget. In order to enhance operational and mission capacity in support of combatant commanders, and to maintain readiness, the Air Force is setting a minimum active-duty force level of 317,000...
 
 
Natl-Better-Hearing-and-Speech-Month

Knowing signs of hearing loss, speech disorder are vital to well-being

May is Better Hearing and Speech Month, where we seek to raise awareness about communication disorders and learning how to recognize their signs. Below are things you should know, from the American Speech and Language Hearing A...
 

 

Quarterly Awards: best of the best highlighted

Airman of the Quarter: Senior Airman Dominique Acuna, integrated flight control specialist, 452nd Aircraft Maintenance Squadron.   NCO of the Quarter: Tech. Sgt. Ruben Davis, mental health craftsman, 752nd Medical Squadron.   SNCO of the Quarter: Master Sgt. Christopher Jugas, non-commissioned officer in charge of training, 452nd Security Forces Squadron.
 
 
DoD
AFN photo/Charlie Gill

Robert Sekula, man of many hats

AFN photo/Charlie Gill Robert Sekula, a broadcast journalist/producer working at the American Forces Network Broadcast Center, one of March Air Reserve Base’s mission partners, wears many hats. Robert Sekula’s ever-present ...
 
 
U.S. Air Force photo/Senior Airman Kevin Mitterholzer

Recruits swear in at Military Appreciation Night

U.S. Air Force photo/Senior Airman Kevin Mitterholzer Lt. Col. Erin Meinders, commander, 362nd Recruiting Squadron, swears in 13 new recruits to the Air Force Reserve, during the Inland Empire 66ers Military Appreciation Night ...
 




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