SOURCE: www1.va.gov
Washington, D.C. . . . Secretary of Veterans’ Affairs, Eric K. Shinseki, announced today that military personnel insuring their families under the service members’ Group Life Insurance (SGLI) program which is administered by the Department of Veterans’ Affairs, will have reduced out-of-pocket expenses beginning July 1.
“VA hopes these reductions will allow more military personnel to obtain affordable life insurance coverage for their spouses, particularly in these difficult economic times,” said Shinseki. “Without insurance protection, life after the loss of a spouse can be not only challenging emotionally, but can place a severe financial strain on a family.”
Family SGLI (FSGLI) monthly premium rates will be reduced for all age groups by an average of eight percent. The new rates are based on revised estimates for the cost of the program. This is the third time premiums have been reduced since the FSGLI program began in November 2001. Spousal premiums were previously reduced for all age groups in 2003 and 2006.
FSGLI coverage provides life insurance protection to military personnel for their spouses and children. Children are automatially insured for $10,000, with no premiums charged.
Based on the coverage of service members, spouses may be insured for up to $100,000. Military personnel pay age-based premiums for spousal coverage – the older the spouse, the higher the premium rate.
The premium reduction insures FSGLI remains highly competitive compared to commercial insurers.