Air Force

May 2, 2014

SGLI premium adjustment effective July 1, 2014

WASHINGTON — 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 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.


 
 

 
U.S. Air Force photo by Senior Airman Joshua Kleinholz

31st TES F-35s take on Green Flag 15-08

U.S. Air Force photo by Senior Airman Joshua Kleinholz Tactical air control party members from the 7th Air Support Operations Squadron, Fort Bliss, Texas, monitor radios from a defensive fighting position while AH-64D Apache he...
 
 
U.S. Air Force photo by Susan Garcia

USAF Weapons School JTAC graduates to receive hallowed patches

U.S. Air Force photo by Susan Garcia Master Sgt. Jared Pietras, left, U.S. Air Force Weapons School Joint Terminal Attack Controller Advanced Instructor Course instructor, and Tech. Sgt. James Larsen, JTAC AIC student, pass tar...
 
 

Leaders: Good, bad, forgotten

JOINT BASE SAN ANTONIO-RANDOLPH, Texas — It’s been my Air Force experience there are three categories of leaders — the good, bad, and the forgotten.Everyone reading this probably thinks they’re in the first category, but we know that’s not the case. Airmen who work for you certainly wish that were true, but not every leader’s...
 

 

Are you ready to transition out of your uniform?

VANCE AIR FORCE BASE, Okla. — Leaving the military is not as simple as staying home the day after your service commitment is up. Almost 23 years ago, after a summer vacation that lasted less than 48 hours, I showed up in Colorado Springs, Colorado, with about 1,000 of my new closest friends. Fast forward...
 
 
561st-Patch

561st JTS enhances warfighter TTPs

NELLIS AIR FORCE BASE, Nev. — Nellis AFB is home to many groups and squadrons with important mission capabilities that make the U.S. Air Force the most flexible and capable force possible. The 561st Joint tactics Squadron is ...
 
 
U.S. Air Force photo by Airman 1st Class Jake Carter

Airman’s Attic provides free items, goods

U.S. Air Force photo by Airman 1st Class Jake Carter Patrons at the Airman’s Attic look through the store’s inventory on Nellis Air Force Base, Nev., June 18. The Airman’s Attic is a volunteer-based organization where Air...
 




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>