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.


 
 

 
breast-cancer-awareness

A story of survival and resilience

BEALE AIR FORCE BASE, Calif. — On April 16, 2007, I got a call no expecting mother would dream of receiving. “We got the results from your biopsy and it came back malignant.” Did the doctor just say I had cancer? I fi...
 
 

UltimateMe to help military families get healthier

The President’s Council on Fitness, Sports & Nutrition (PCFSN) is working with the Sharecare team to support the launch of UltimateMe, a secure, personalized online wellness platform to help members of the military community assess, manage and improve their health and performance. The new platform expands the access to wellness programs and resources for service members and...
 
 
U. S. Air Force artwork

Hundreds in 452nd held as POWs in WWII

U. S. Air Force artwork Depiction of a crippled B-17 settled on the ground. (Tenth in an 11-part series that was first run in the Beacon in 2007) More than 750 men from the 452nd Bombardment Group were shot down in B-17 Flying ...
 

 
Nuke-Medal-graphic

Air Force releases criteria for new service medal

U.S. Air Force courtesy graphic WASHINGTON (AFNS) — Air Force officials released nomination criteria for the new Nuclear Deterrence Operations Service Medal, following Secretary of the Air Force Deborah Lee James’ May 2...
 
 
DoD

Obama activates reserves for Operation United Assistance

WASHINGTON (AFNS) — President Barack Obama has authorized the Defense Department to call up a small number of National Guard or reserve troops that possess special skills needed to aid efforts in stopping the spread of the deadly Ebola virus in West Africa. Obama issued an executive order yesterday authorizing the secretaries of Defense and...
 
 
Halloween-Safety

Halloween safety tips for 2014

Here are a few safety tips from the U.S. Consumer Product Safety Commission can protect children who plan to go trick-or-treating this Halloween. Costume Designs: Purchase or make costumes that are light and bright enough to be...
 




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