|Military Life Insurance Premiums Reduced|
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 were 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/.