1. News & Issues
Military Life Insurance Premiums Reduced
Will reduce monthly cost of SGLI premiums 
 More Resources
How to Apply for a VA Home Loan

Books For and About Veterans

• More Resources for Veterans

Research Helper

Jobs in Federal Government

Jobs in State Government

Career Help from the U.S. Government

Unclaimed Money: Find and Claim It

Health & Medical News

Environmental News
 
 Books, Videos, Gifts
Compare Prices and Buy Online

Government Related Best Selling Books

Books on US Presidents

Books on Congress and Government

Books on the US Constitution

Videos for Learning About US Government

Books on Student Loans and Grants, and Money Management

Books on Gun Control
 
Flags and Patriotic Gifts
 
  From Other Guides
• About US Military

Missing Children and Adults - Help Find Them
 
 Money Resources
• Money for a Small Business

Small Business Grants? The States Have Them

Unclaimed Money: Find and Claim It

Government Aid & Money – No Grant Needed

• U.S. Government Grant Information Sources

Getting Into College - Financial Aid

New: Books on Student Loans and Grants, and Money Management

Are You Eligible for Federal Aid?

Patents, Copyrights and Trademarks

More Money & Financial Resources
 
 Elsewhere on the Web
US Department of Defense 
 
 

Dateline: 01/27/03

WASHINGTON - The Department of Veterans Affairs (VA) will reduce Servicemembers’ Group Life Insurance (SGLI) premiums, beginning in July 2003. Ninety-eight percent of active duty and 96 percent of eligible reservists hold SGLI policies.

“I am extremely pleased to announce these premium reductions,” said Secretary of Veterans Affairs Anthony J. Principi. “It is impossible to put a price tag on the peace of mind SGLI provides military men and women and their families. But it is possible to reduce the out-of-pocket expenses of these heroes, and that is what we’re doing.”

The new monthly rate will be 6.5 cents for every $1,000 of coverage, about 19 percent less than the current 8 cents. Monthly premiums for the maximum coverage of $250,000 will fall to $16.25 from the current $20.

In addition to the basic SGLI, family coverage is available for spouses and children of servicemembers holding SGLI policies. Spouses pay age-based premiums for up to $100,000 coverage, while children receive $10,000 of free coverage. The reduction for spousal policies will vary among age groups, with the largest decline – 42 percent – affecting those 35 to 39.

The reductions will save servicemembers about $96 million annually in basic SGLI premiums and about $42 million in family policy premiums.

The reductions do not affect Veterans’ Group Life Insurance (VGLI) rates, which VA reduced 3 times in the last four years. Servicemembers become eligible for VGLI only after they leave the military.

“Ideally, military members and their families will never need to collect from their SGLI policies,” said Principi. “But if the need does arise, we want them to have as much insurance protection as possible, at the lowest rate possible.”

For more information about VA administered life insurance programs, call 1-800-419-1473, or visit http://www.insurance.va.gov/.

 

Subscribe to the Newsletter
Name
Email

 

You can opt-out at any time. Please refer to our privacy policy for contact information.

©2014 About.com. All rights reserved.