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 Master Sgt. Kevin J. Gruenwald

40 years of Red Flag at Nellis

U.S. Air Force photo by Master Sgt. Kevin J. Gruenwald A flight of F-15 Eagles and F-16 Fighting Falcons Aggressors fly in formation over the Nevada Test and Training Ranges June 5, 2008. The proposal for Red Flag came in early...
 
 

True inteGRITy

AL UDEID AIR BASE, Qatar — Your homework after reading this article is to turn to the closest Airman and ask him to define ‘integrity.’ Wait while he rattles off some version of, “integrity means doing the right thing even when no one is watching,” and then say “stop telling people that; you sound like...
 
 

Diversity is Biomedical Sciences Corps strength

NELLIS AIR FORCE BASE, Nev. — The Biomedical Sciences Corps will celebrate the 50th anniversary of Special Order CA-5, which established the Air Force Medical Services Biomedical Sciences Corps, here Jan. 28. Many Airmen, new and seasoned, are unfamiliar with the five distinct branches of the U.S. Air Force Medical Service corps, which includes the...
 

 
U.S. Air Force photo by Staff Sgt. Siuta B. Ika

Airman pulls woman from burning vehicle

U.S. Air Force photo by Staff Sgt. Siuta B. Ika Tech. Sgt. Justin Mahana, 823rd Maintenance Squadron support section chief, poses in front of an HH-60G Pave Hawk at Nellis Air Force Base, Nev., Jan. 20. On Jan. 6, Mahana pulled...
 
 
U.S. Air Force photo by David Bedard

Former Airman sentenced to 18 years in drunken–driving death tells story

U.S. Air Force photo by David Bedard Former Airman 1st Class Lane Wyatt recounts the night of June 30, 2013, when he killed Citari Townes-Sweatt in a drunken-driving accident. Wyatt was sentenced Dec. 19, 2014, to 18 years in p...
 
 

Stepping into a better self

U.S. Air Force photo by Airman 1st Class Mikaley Towle Michelle Strawn, 99th Force Support Squadron, works out to a step class video at the Warrior Fitness Center on Nellis Air Force Base, Nev., Jan. 21. Strawn is a group fitness instructor and teaches Hatha yoga on Tuesdays and Thursdays at the Warrior Fitness Center...
 




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