The Department of Defense announced today the Servicemembers Group Life Insurance (SGLI) maximum coverage increases to $400,000 on Sept. 1, 2005.
On that date, all members eligible for SGLI will automatically be insured for the maximum coverage of $400,000. The monthly SGLI premium remains $3.25 per $50,000 of coverage, so the monthly premium for full coverage will be $26.00 beginning in September 2005.
These changes will not affect coverage under Family SGLI, which will continue under previously existing elections.
A member, who wishes to retain the $400,000 of coverage with beneficiary designations as before Sept. 1, 2005, does not need to take any action. The $400,000 of coverage will apply along with the new premiums and beneficiary designations will remain the same as those in effect before Sept. 1, 2005.
Even members, who had previously declined SGLI coverage or elected less than the maximum coverage, will automatically be covered for $400,000 on Sept. 1, 2005. If they wish to again decline or reduce the coverage, they must complete a new SGLV 8286 form (September 2005 version) indicating the amount of coverage desired including no coverage if applicable.
If the member properly completes and submits the form before Sept. 30, 2005, the member will not be liable for the September 2005, premium associated with the reduced or declined portion of coverage.
This gives members 30 days to reduce or decline unwanted coverage without charge. Units will be asked to process elections as expeditiously as possible to avoid the necessity for corrections in financial transactions.
The Defense Finance and Accounting Service will refund premiums deducted for coverage in September, when the member files a valid election to reduce or decline the coverage between Sept. 1-30, 2005.
The new SGLV 8286 form will be available on the Department of Veterans Affairs Web site at http://www.insurance.va.govbeginning Aug. 31, 2005. Entries can be made on the page and then downloaded.
Valid SGLI elections become effective the first day of the month after properly submitting the election form. So, all members of the uniformed services will be fully insured for $400,000 throughout the month of September 2005, regardless of any election filed before or during September, 2005.
If a member dies in September after completing an election for reduced coverage or no coverage, the members beneficiaries will still receive a $400,000 payment. Those electing to decline or reduce coverage during September will essentially receive the September automatic coverage at no cost.
Members who do not make an election to reduce or decline coverage from the $400,000 level before October 1, 2005, will pay the premium for the full $400,000 of coverage for September as well as for any other month in which the level of coverage remains in effect.
When a member properly completes and submits SGLV Form 8286 on or after Oct. 1, 2005, to reduce or decline coverage, the reduction is effective the first day of the month after the form is properly submitted.
Changes to SGLI program, such as an increase in the maximum level of coverage, are a matter of law. This change was made in the Emergency Supplemental Appropriations Act for Defense, the Global War on Terror, and Tsunami Relief, 2005 (Public Law 109-13, May 11, 2005).