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IMMEDIATE RELEASE

Release No: 549-06
June 14, 2006

Servicemember's Group Life Insurance (SGLI) Premium Rate Changes Take Effect July 1, 2006

Effective July 1, 2006, the monthly premium rate for basic SGLI will increase by 5 cents per month for each $10,000 of coverage, from 65 cents per month per $10,000 to 70 cents per month per $10,000.  On the same date, Family SGLI premiums will decrease across the board.

The most recent SGLI premium change occurred in July 2003 when the monthly premium rate for basic SGLI was reduced from 80 cents per $10,000 of insurance to 65 cents per $10,000.  That change was made to reduce surplus reserve funds in the program.  A small increase in the SGLI premium rate is now necessary for the program to remain in sound financial condition, while covering the cost of peacetime claims.  It is important to note that the cost of wartime SGLI claims is borne by the uniformed services, not by service members.

As a result of this increase, members who have the maximum $400,000 of SGLI coverage will see their monthly SGLI deduction from service pay increase by $2 a month, from $27 to $29, beginning with their July 2006 pay.  This monthly SGLI premium includes a $1 per month charge for Traumatic Injury Protection coverage, which took effect Dec. 1, 2005 and provides payments of up to $100,000 for serious traumatic injuries.

Also effective July 1, 2006, Family SGLI monthly premium rates will be reduced for all age groups by an average of 10 percent.  The new rates reflect better-than-expected claims experience for each age group in the Family SGLI program.  The current and revised premium rates are shown in the table below.  The last column contains the monthly premium rates for the maximum coverage of $100,000. 

 

AGE GROUP

CURRENT RATES

(Per $10,000)

REVISED

RATES

(Per $10,000)

REVISED RATES FOR $100,000 COVERAGE

   Under 35

$.60

$.55

$5.50

35-39

.75

.70

7.00

40-44

1.00

.90

9.00

45-49

1.90

1.40

14.00

50-54

2.80

2.70

27.00

55-59

4.20

4.00

40.00

60 & Up

5.40

5.20

52.00

 

               For more information about VA life insurance programs, visit: www.insurance.va.gov.