The Department of Defense announced today that the deadline for reducing or declining increased Servicemembers Group Life Insurance (SGLI) coverage has been extended for service members affected by Hurricane Katrina.
Maximum SGLI coverage increased to $400,000 on Sept. 1, 2005. On that date, all members eligible for SGLI were automatically insured for the maximum coverage of $400,000. The monthly SGLI premium remained at $3.25 per $50,000 of coverage, so the monthly premium for full coverage is $26 beginning in September 2005.
These changes do not affect coverage under Family SGLI (FSGLI), which will continue under previously existing elections.
A member, who wishes to retain the $400,000 of coverage with the same 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 in effect just before Sept. 1, 2005.
If a member wishes to again decline or reduce the coverage, they must complete a new SGLV 8286 (September 2005 version) at http:// www.insurance.va.gov indicating the amount of coverage desired, including no coverage if applicable.
A previous DoD news release indicated that if the member properly completed and submitted the form before Sept. 30, 2005, the member would not be liable for the September 2005 premium associated with the reduced or declined portion of coverage.
Subject to verification by a members commanding officer or other unit official, the date to make an election and not be liable for premiums will be extended to Nov. 30, 2005, if a member was unable to make an election due to Hurricane Katrina or Rita.
This extension will apply to service members following an order or authorization to evacuate due to Hurricane Katrina or Rita and those involved in rescue and clean-up actions.
It also gives members in the affected areas 90 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 prior months when the member files a valid election to reduce or decline the coverage between Sept. 1 and Nov. 30, 2005.