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SGLI and VGLI Premium Rate Decrease
As of July 1, 2008, the new premium rate for basic SGLI is 6.5 cents per $1,000 per month, down from 7 cents per $1,000 per month. This translates into a 7% savings, and service members with the maximum $400,000 of coverage will see their monthly premium reduced from $28 to $26 (service members are also covered against severe traumatic injury for one additional dollar each month). Follow this link to view a table of reduced SGLI rates at different coverage levels.
According to Secretary of Veterans Affairs, Dr. James Peake, “This reduction in SGLI premiums makes life insurance even more affordable for today’s military service members. With many of them putting their lives at risk against terrorism, life insurance coverage is more important than ever. It provides peace of mind to every member of the uniformed services that their family will be provided for in the event something should happen to them.”
This reduction in SGLI premiums is supported by lower (non war-related) claims, along with increases in investment earnings. VA believes that this premium reduction will help maintain the nearly universal participation in the program.
As of July 1, 2008, VGLI premium rates were reduced for those ages 30 to 64, which comprise 85 percent of those insured under the program. Premium rates for those under age 30 are already very competitive. These premium reductions will range from 4% to 12% and are a result of recent improvement in claims experience. They will ensure that VGLI remains in a highly competitive position with similar insurance offered by commercial insurers. Follow this link to view a table of reduced VGLI premium rates.
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