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.


 
 

 
U.S. Air Force photo/Staff Sgt. Tiffany Lindemann

Team March maintainers refurbish KC-135 Stratotanker in record time

U.S. Air Force photo/Staff Sgt. Tiffany Lindemann Staff Sgt. Caleb Meyer, an active-duty crew chief, and Staff Sgt. Neftali Rivera, an Air Reserve Technician and crew chief, both from the 752nd Maintenance Squadron, screw in th...
 
 
U.S. Air Force photo/Senior Airman Russell S. McMillan

Johnson assumes command of 56th Aerial Port Squadron

U.S. Air Force photo/Senior Airman Russell S. McMillan Col. Timothy McCoy (left), commander, 452nd Mission Support Group, March Air Reserve Base, passes the guidon to Maj. Mark E. Johnson, commander, 56th Aerial Port Squadron, ...
 
 
U.S. Air Force photo/Tech. Sgt. Ryan Crane

Airman, Guardsman recognized as ‘heroes’ in Paris

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

 
150822-F-RK887-146

Chief Kacsmaryk Retirement

U.S. Air Force photo/Senior Airman Russell S. McMillan Chief Master Sgt. Michael Kacsmaryk, superintendent, 752nd Aircraft Maintenance Squadron, March Air Reserve Base, receives a U.S. flag that was flown over the Capitol, duri...
 
 

The 452nd Air Mobility Wing 2015, 3rd Quarter award winners

Airman of the Quarter – Senior Airman Christian Bojorquez, 452 SFS   NCO of the Quarter – Staff Sgt. Kevin Duffy, 56 APS   SNCO of the Quarter – Senior Master Sgt. Winston Demmin, 452 AMXS   Company Grade Officer of the Quarter – Capt. Dawn Schultz, 452 MDG/752 MDS   (Not pictured) Civilians of...
 
 

Healthy Base Initiative ends, Team March continues concept

The Defense Department’s Healthy Base Initiative is about to end, but the emphasis on health and wellness is merely making a transition. The Healthy Base Initiative, a DOD demonstration project at 14 installations that tested ways to improve the health and wellness of troops, civilians and their families, is ending this month. However, the successful ideas that...
 




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>