ALCOAST 326/08 COMDTNOTE 7220 SUBJ: SGLI PREMIUM CHANGES AND RELATED POLICY ISSUES A. UNDER SECRETARY OF VETERANS AFFAIRS FOR BENEFITS LTR DTD 13 MAR 2008 B. COMDT COGARD WASHINGTON DC 141606Z JUN 07/ALCOAST 299/07 C. PERSONNEL AND PAY PROCEDURES MANUAL, PSCINST M1000.2A 1. PREMIUM RATES FOR SERVICEMEMBERS GROUP LIFE INSURANCE (SGLI) DECREASED SLIGHTLY ON 1 JUL 2008, PER REF A. MAXIMUM COVERAGE REMAINS AT 400,000 USD. THIS ALCOAST PROVIDES THE NEW MONTHLY PREMIUM RATES. POLICIES ON SGLI, TRAUMATIC SGLI (TSGLI), COMBAT SGLI AND FAMILY SGLI (FSGLI) ARE BRIEFLY REVIEWED AND UPDATED. 2. LIFE INSURANCE PROGRAMS: A. SGLI MAY BE PURCHASED BY ELIGIBLE MBRS OF THE COAST GUARD. SGLI IS AVAILABLE IN INCREMENTS OF 50,000 USD. MAXIMUM COVERAGE IS 400,000 USD. BEGINNING 1 JUL 2008 THE MONTHLY PREMIUM PAID BY A MBR IS 3.25 USD FOR EACH INCREMENT OF COVERAGE. MAXIMUM COVERAGE COSTS 26.00 USD PER MONTH, A REDUCTION OF 2.00 USD FROM THE PREVIOUS RATE. SGLI COVERAGE OLD RATE NEW RATE (USD) (1) 50,000 USD 3.50 3.25 (2) 100,000 USD 7.00 6.50 (3) 150,000 USD 10.50 9.75 (4) 200,000 USD 14.00 13.00 (5) 250,000 USD 17.50 16.25 (6) 300,000 USD 21.00 19.50 (7) 350,000 USD 24.50 22.75 (8) 400,000 USD 28.00 26.00 B. TRAUMATIC SGLI (TSGLI) PROVIDES ADDITIONAL SUPPORT FOLLOWING A NON-FATAL TRAUMATIC INJURY SUCH AS THE LOSS OF AN EYE OR A LIMB. THE BENEFIT PAYMENT DEPENDS ON THE SPECIFIC QUALIFYING INJURY. PAYMENTS RANGE FROM 25,000 USD TO 100,000 USD. FOR EXAMPLE, PAYMENT FOR AN AMPUTATED FOOT IS 50,000 USD BUT A BROKEN LEG IS NOT ELIGIBLE FOR A BENEFIT PAYMENT BECAUSE IT IS LESS SEVERE. EVERY MBR WITH SGLI AUTOMATICALLY HAS TSGLI. IT COSTS 1.00 USD/MONTH. C. COMBAT SGLI: MBRS DEPLOYED TO OPERATION ENDURING FREEDOM (OEF) OR OPERATION IRAQI FREEDOM (OIF) RECEIVE A REFUND OF THEIR INSURANCE PREMIUM FOR SGLI AND TSGLI AT THE RATE FOR THE MAXIMUM COVERAGE AMOUNT AVAILABLE. TSGLI IS INCLUDED BECAUSE IT IS AUTOMATIC FOR ALL MBRS WITH SGLI. (1) COMBAT SGLI REFUND DECREASED FROM 29.00 USD TO 27.00 USD PER MONTH, MATCHING THE SGLI PREMIUM REDUCTION. (2) COMBAT SGLI REMAINS IN EFFECT PER ALCOAST 523/06. D. FAMILY SGLI (FSGLI): FSGLI PROVIDES 10,000 USD COVERAGE FOR EACH CHILD AND UP TO 100,000 USD COVERAGE FOR THE SPOUSE OF A MBR. A MBR MAY INSURE A SPOUSE WHO IS ALSO A MBR. FSGLI COVERAGE IS ONLY AVAILABLE IF THE MBR HAS REGULAR SGLI. COVERAGE FOR CHILDREN IS FREE. FSGLI COVERAGE FOR A SPOUSE IS NOT FREE AND HAS OPTIONS, SO EACH MARRIED MBR MUST HAVE A FAMILY COVERAGE ELECTION FORM (SGLV-8286A) FILED IN PART 4 OF THE PERSONNEL DATA RECORD (PDR). MONTHLY PREMIUMS VARY BASED ON THE AGE OF THE SPOUSE. FOR EXAMPLE, THE MONTHLY COST FOR 100,000 USD COVERAGE ON A SPOUSE WOULD BE 5.50 USD FOR A 30-YEAR-OLD SPOUSE AND 9.00 USD FOR A 40-YEAR-OLD SPOUSE. (1) NOTE: FSGLI COVERAGE IS ONLY FOR THE CHILDREN AND CURRENT SPOUSE OF A MBR. THERE IS NO FSGLI COVERAGE FOR AN EX-SPOUSE. (2) A COURT CANNOT ORDER FSGLI TO CONTINUE FOR AN EX-SPOUSE. REGARDLESS OF ANY COURT ORDER OR ADMINISTRATIVE ERROR, THERE IS NO FSGLI COVERAGE FOR AN EX-SPOUSE. (3) FSGLI WAS EXTENSIVELY COVERED IN ALCOAST 299/07, REF B, WHICH REMAINS IN EFFECT. (4) REF B PARA 3.L(2) HAS VITAL MBR-MARRIED-TO-MBR DETAILS. E. SGLI, TSGLI, AND FSGLI PROVIDE 24/7 COVERAGE. RESERVISTS ARE COVERED 24/7 EVEN WHEN NOT ON ORDERS. BENEFIT PAYMENTS ARE INDEPENDENT OF ANY LINE OF DUTY DETERMINATION BY THE COAST GUARD. TSGLI BENEFIT PAYMENTS ARE INDEPENDENT OF THE PHYSICAL DISABILITY EVALUATION SYSTEM. FOR THE FAMILY OF A MILITARY MBR, FSGLI COVERAGE BEGINS FOR A CHILD AT THE MOMENT OF LIVE BIRTH AND FOR A SPOUSE AT THE MOMENT OF MARRIAGE. 3. POLICY POINTS: A. THE PDR OF EVERY MBR MUST HAVE ONE FORM SGLV-8286, SGLI ELECTION AND CERTIFICATE. B. THE SERVICING PERSONNEL OFFICE (SPO) MUST REVIEW PART 4 OF THE PDR OF EACH MBR AND RESOLVE DISCREPANCIES ON THE FOLLOWING OCCASIONS: ACCESSION, COMMISSIONING, PCS (OUT OR IN), WHEN MBR GAINS A SPOUSE (MARRIAGE) OR LOSES A SPOUSE (DEATH, DIVORCE OR ANNULMENT), AND WHENEVER COVERAGE FOR AN ELIGIBLE MBR RESUMES AUTOMATICALLY DUE TO A CHANGE OF STATUS. CHANGE OF STATUS INCLUDES A CHANGE FROM ACTIVE DUTY TO SELRES, FROM IRR TO SELRES, OR FROM RESERVE TO ACTIVE DUTY. C. IF A PDR IS FOUND TO BE WITHOUT AN SGLV-8286, THE MBR MUST COMPLETE ONE IMMEDIATELY. D. THE SGLI BENEFIT MAY BE DESIGNATED TO ANYONE BY THE MBR. TO CHANGE COVERAGE OR BENEFICIARIES USE FORM SGLV-8286. BY LAW THE SERVICE MUST SEND A NOTIFICATION LETTER TO THE SPOUSE OF A MARRIED MBR IF THE MBR ELECTS TO REDUCE OR DECLINE COVERAGE OR DESIGNATES SOMEONE OTHER THAN THE SPOUSE OR CHILDREN AS BENEFICIARY FOR SOME OR ALL OF THE BENEFIT. THE NOTIFICATION LETTER WILL SPECIFY WHICH SITUATION PROMPTED THE LETTER BUT WITHOUT DETAILS. A SINGLE LETTER MAY BE SENT IF BOTH SITUATIONS APPLY. THE NOTIFICATION LETTER WILL USUALLY BE SENT BY THE SPO USING FIRST CLASS MAIL. FILE A COPY OF THE NOTIFICATION LETTER IN PART 4 OF THE PDR WITH THE SGLV-8286. E. PREMIUMS ARE A DEDUCTION AGAINST CURRENT MONTHLY INCOME. F. PREMIUMS ARE CHARGED IN WHOLE-MONTH BLOCKS AT THE CURRENT RATES POSTED ONLINE AT WWW.INSURANCE.VA.GOV. RATES ARE SUBJECT TO CHANGE. DEFAULT IS FULL COVERAGE. G. THE SAME PROCEDURES APPLY FOR ALL ELIGIBLE RESERVISTS AND ALL ACTIVE DUTY MBRS. (1) RESERVISTS ELIGIBLE: SELECTED RESERVISTS (SELRES), NON-PAY RESERVISTS SCHEDULED TO PERFORM AT LEAST 12 TRAINING/DUTY PERIODS PER YEAR, AND RESERVISTS ON ACTIVE DUTY ARE ELIGIBLE. (2) RESERVISTS NOT ELIGIBLE: ACTIVE STATUS LIST (ASL) AND IRR NOT ASSIGNED TO A DRILLING UNIT ARE NOT ELIGIBLE FOR SGLI. (3) NOTE: FOR AN ELIGIBLE RESERVIST WITH ZERO CURRENT MONTHLY INCOME ON THE LES, PSC MAY AUTOMATICALLY ADVANCE THE AMOUNT OF THE PREMIUMS DUE FOR UP TO TWO MONTHS AND THEN RECOUP THE AMOUNT ADVANCED WHEN THE RESERVIST AGAIN HAS COAST GUARD INCOME. FOR PERIODS GREATER THAN TWO MONTHS THE RESERVIST MUST REMIT PAYMENT FOR SGLI/TSGLI PREMIUMS (AND FSGLI IF APPLICABLE) TO PSC BY CHECK OR CREDIT CARD. FAILURE TO PAY RESULTS IN CANCELLATION OF SGLI/TSGLI (AND FSGLI) AS DETAILED IN SECTION 5-A, REF C. H. A MBR GETTING MARRIED SHOULD COMPLETE A NEW SGLV-8286 WITHIN 30 DAYS AFTER THE MARRIAGE EVEN IF BENEFICIARIES DO NOT CHANGE. IF A NEWLYWED MBR DECIDES TO REDUCE OR DECLINE COVERAGE OR TO DESIGNATE ANY BENEFICIARY OTHER THAN THE NEW SPOUSE OR EXISTING CHILDREN THEN THE COAST GUARD MUST NOTIFY THE NEW SPOUSE IN WRITING. EXCEPTION: MBRS DESIGNATING A FIANCE/FIANCEE AS SOLE BENEFICIARY NEED NOT DO A NEW SGLV-8286 WHEN THEY MARRY. I. MBRS HAVE FULL SGLI AND TSGLI COVERAGE IN EFFECT AS LONG AS THEY ARE PAYING FOR COVERAGE. MBRS WHO REDUCED OR DECLINED COVERAGE STILL HAVE ACTIVE POLICIES WHILE THEY CONTINUE TO PAY FOR COVERAGE. NOTE: IF A MBR DECLINED COVERAGE AND THE SGLI/TSGLI DEDUCTION ON THE LES DID NOT CHANGE TO MATCH WITHIN ONE MONTH THEN THE MBR HAS SOME PERSONAL RESPONSIBILITY TO FOLLOW UP WITH THE SPO. J. IN GENERAL, SGLI/TSGLI PREMIUMS WILL NOT BE REFUNDED. NO REFUND WILL BE MADE FOR THE CURRENT MONTH DURING WHICH A MBR REDUCES OR DECLINES COVERAGE. PSC IS AUTHORIZED TO PROCESS REFUNDS TO A MAXIMUM OF TWO MONTHS IN ORDER TO RESOLVE ADMINISTRATIVE ERROR OR LAG TIME. REFUNDS WILL NOT EXCEED TWO MONTHS OF PREMIUMS UNLESS APPROVED BY COMMANDANT (CG-1222) FOR "VERY UNUSUAL" CIRCUMSTANCES. (1) REQUESTS TO REFUND THREE OR MORE MONTHS OF PREMIUMS MUST DESCRIBE THE CIRCUMSTANCE THAT QUALIFIES THE ADDITIONAL MONTHS AS "VERY UNUSUAL." (2) EXAMPLES: HURRICANE KATRINA WAS "VERY UNUSUAL." A MBR IN A COMA WOULD BE "VERY UNUSUAL." DEPLOYMENT, TAD, HEAVY DUTY SCHEDULE, HUMAN ERROR, MISSING LES, IGNORANCE, AND PERSONAL INATTENTION ARE PART OF THE FLUX IN THE NORMAL LIFE OF A COAST GUARDSMAN. THEY ARE NOT "VERY UNUSUAL." K. ANNUAL BAH REVIEW (OCTOBER AND NOVEMBER): EVERY MBR MUST REVIEW THEIR SGLV-8286 AND COMPARE IT TO THEIR LES TO MAKE SURE THE COVERAGE THEY ELECTED MATCHES THE SGLI DEDUCTION. (1) THE LES FOR MARRIED MBRS WILL SHOW "SGLI/FAMILY." (2) THE LES FOR MBRS WHO ARE DIVORCED, WIDOWED OR SINGLE (INCLUDING SINGLE PARENTS) WILL SHOW "SGLI/MEMBER." L. EVERY SPOUSE MUST BE IDENTIFIED IN THE DEERS DATABASE. NOTE: A SPECIAL PROCEDURE APPLIES FOR A MBR MARRIED TO ANOTHER MILITARY MBR (OF ANY SERVICE). SEE PARA 3.L(2)OF REF C. M. COAST GUARD CERTIFYING AUTHORITY FOR SGLI, TSGLI, AND FSGLI CLAIMS IS COMMANDANT (CG-1222). N. CENTRAL RECORDKEEPING: (1) WHENEVER A NEW SGLI FORM IS COMPLETED THE SPO MUST SEND A CLEAN COPY TO THE RECORDS BRANCH AT CGPC (ADM-3), CONSISTENT WITH LONGSTANDING PROCEDURE. (2) FORMS RECEIVED AT THE RECORDS BRANCH WILL BE SCANNED INTO THE ELECTRONIC IMAGED PERSONNEL DATA RECORD (EIPDR). (3) REQUIREMENT APPLIES TO TWO SGLI FORMS: SGLV-8286, SGLI ELECTION AND CERTIFICATE, AND SGLV-8285, REQUEST FOR INSURANCE. THE 8286 IS A COMMON FORM. THE 8285 IS USED OCCASIONALLY FOR RESUMING SGLI COVERAGE AFTER A LAPSE. (4) NOTE: THE SAME CENTRAL RECORDKEEPING PROCEDURE APPLIES TO SIMILAR FORMS USED FOR FSGLI: SGLV-8286A AND SGLV-8285A. (5) DO NOT SEND CGPC (ADM-3) ANY COPIES OF CLAIM FORMS PREPARED BY THE MBR OR BENEFICIARY. THESE ARE FORMS SGLV-8283 CLAIM FOR DEATH BENEFITS, SGLV-8284 SERVICEMEMBER/VETERAN ACCELERATED BENEFITS OPTION FORM, OR GL.2005.261 CLAIM FOR TSGLI PAYMENT. 4. PSC MAY PUBLISH ADDITIONAL ADMINISTRATIVE DETAILS AND EXPLANATIONS VIA ALSPO, IN THE LES, OR BY OTHER MEANS. 5. MORE SGLI INFORMATION IS AVAILABLE AT THE VA INSURANCE WEBSITE WWW.INSURANCE.VA.GOV, OR BY EMAIL TO THE OFFICE OF SGLI AT OSGLI.OSGLI (AT) PRUDENTIAL.COM. 6. INDIVIDUAL QUESTIONS ABOUT SGLI, TSGLI, COMBAT SGLI OR FSGLI SHOULD BE ADDRESSED TO THE SPO. A SPO MAY ADDRESS QUESTIONS TO PSC. SEND QUESTIONS ABOUT THIS ALCOAST VIA EMAIL TO: COMPENSATION (AT) COMDT.USCG.MIL. 7. RELEASED BY CURTIS B ODOM, ACTING DIRECTOR OF PERSONNEL MANAGEMENT. 8. INTERNET RELEASE AUTHORIZED.