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.


 
 

 

Air Force fighters, bombers conduct strikes against ISIL targets in Syria

TAMPA, Fla. — U.S. military forces and partner nations, including the Kingdom of Bahrain, the Hashemite Kingdom of Jordan, the Kingdom of Saudi Arabia, Qatar and the United Arab Emirates, undertook military action against ISIL terrorists in Syria Sept. 22, using a mix of fighter, bomber, remotely piloted aircraft and Tomahawk Land Attack Missiles to...
 
 
page-one

End of an era: 65th AGRS set to deactivate

NELLIS AIR FORCE BASE, Nev. – After almost a decade of unyielding service, the 65th Aggressor Squadron will be deactivating. Since being reactivated Sept. 15, 2005, the 65th AGRS helped provide air combat training for militar...
 
 
U.S. Air Force photo by Scott Ash

Air Force leaders sign Total-Force Aircrew Management charter

U.S. Air Force photo by Scott Ash Leaders of the Air Force and the Air Reserve Component sign the Total Force Aircrew Management charter Sept. 18, during the Aircrew Summit at Joint Base Andrews, Maryland. From left to right, D...
 

 
U.S. Air Force photo by Staff Sgt. Matt Davis

ACC commander outlines imperatives for the Combat Air Force

U.S. Air Force photo by Staff Sgt. Matt Davis Gen. Mike Hostage, commander of Air Combat Command, speaks to the audience on the importance of maintaining combat capabilities with minimal resources during the Air Force Associati...
 
 
U.S. Air Force photo by Airman 1st Class Mikaley Towle

AFAS helps ease financial stress

U.S. Air Force photo by Airman 1st Class Mikaley Towle Hiroko Bush, 99th Force Support Squadron community readiness consultant, accepts a Nellis Airman’s Air Force Financial Aid Society application at the Airman and Family Re...
 
 

AF to change instructions for oaths

WASHINGTON — The Air Force has instructed force support offices across the service to allow both enlisted members and officers to omit the words “So help me God” from enlistment and officer appointment oaths if an Airman chooses. In response to concerns raised by Airmen, the Department of the Air Force requested an opinion from...
 




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