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.


 
 

 
hb

Mental health services available for all Team March members, families

March Field offers mental health services through Elaine Valentine, 452nd Air Mobility Wing, director of psychological health and a licensed clinical social worker with more than 15 years of experience in the mental health care...
 
 
Courtesy photo

Women can succeed in a man’s world

Courtesy photo Pamela Hann, March Base Civil Engineer, surveys a consturction project at March Air Reserve Base, California. Hann became the first female BCE in Air Force Reserve Command on May 15, 2005, and is responsible for ...
 
 
NWH3

National Women’s History Month: Weaving the Stories of Women’s Lives

(Final in a 4-part series) The National Women’s History Project’s 2015 theme is “Weaving the Stories of Women’s Lives.” In this ongoing series, we highlight individual women who made a difference in the fabric or our ...
 

 
Miracles

Retired Air Force Reservist finds inspiration through loss

Courtesy of Evan Money (First in a three-part series chronicling Angela Alexander’s incredible story which led to a book, a ministry and now, a documentary.) MIRACLE: “An unusual or wonderful event that is believed to be ca...
 
 
U.S. Air Force art by Master Sgt. Elizabeth Concepcion/Released

Airmen stay focused in DOD competition

U.S. Air Force art by Master Sgt. Elizabeth Concepcion/Released Digital painting created in Adobe Photoshop. This artwork was created to depict the US Army occupation in Vietnam and was inspired by the story of a Vietnam war ve...
 
 
Photo: Air Force
Ninth Chief Master

Former CMSAF Binnicker passes away at 76

Photo: Air ForceNinth Chief Master Sgt. of the Air Force James Binnicker died on March 21. Former Chief Master Sgt. of the Air Force James Binnicker, who was the service’s top enlisted man from 1986 to 1990, passed away in Ca...
 




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