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.


 
 

 

October is Energy Action Month: ‘I am Air Force Energy’

NELLIS AIR FORCE BASE, Nev. — Summer has come to a close, and we’re all looking forward to more tolerable temperatures in the coming weeks. Even better news — this means your power bill is likely to go down. But if you think you pay a lot for energy, imagine paying Nellis’ bill of approximately $1 million...
 
 
U.S. Air Force photo by Airman 1st Class Rachel Loftis

ADC: An undue influence to justice

U.S. Air Force photo by Airman 1st Class Rachel Loftis In the event trouble attaches itself to an Airman; the Area Defense Counsel is available for confidential help. The ADC is a free legal service on base available to assist ...
 
 
Courtesy graphic

AF releases criteria for new service medal

Courtesy graphic Graphic of the Nuclear Deterrence Operations Service Medal. WASHINGTON — Air Force officials released nomination criteria for the new Nuclear Deterrence Operations Service Medal, following Secretary of the A...
 

 

2015 Vanguard award nominations due Jan. 28

JOINT BASE SAN ANTONIO-RANDOLPH, Texas — Nominations for the 2015 Noncommissioned Officers Association Vanguard award are due to the Air Force Personnel Center by Jan. 28, Air Force officials said. The award annually recognizes one enlisted member from each of the uniformed services for an act of heroism that results in saving someone’s life or...
 
 

Undergrad flying training applications due in December

JOINT BASE SAN ANTONIO-RANDOLPH, Texas — The 2015 undergraduate flying training selection board originally scheduled for Jan. 20-23 will now convene Feb. 17-20 and associated application suspenses have shifted by approximately a month, Air Force Personnel Center officials said Oct. 10. Eligible active duty officers interested in undergraduate flying training must apply by Dec. 19...
 
 
U.S. Air Force photo by Senior Airman Krystal Jeffers

BMT trainees complete last run on closing obstacle course

U.S. Air Force photo by Senior Airman Krystal Jeffers Basic military trainees swing around a bar as part of the basic military training obstacle course Sept. 24 at Joint Base San Antonio-Lackland, Texas. The obstacle course was...
 




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