thedrifter
04-10-03, 02:26 PM
American Forces Press Service
WASHINGTON, April 10, 2003— The Department of Veterans
Affairs has announced that premiums for the Service members
Group Life Insurance will be reduced, handing military
members a few extra dollars in their pockets each month.
Beginning in July, the cost for a $250,000 policy — the
maximum coverage -- will drop from $20 to $16.25 monthly, a
$3.75 savings. The Department of Veterans Affairs reports
that rates for Veterans Group Life Insurance will not
change.
Tom Tower, DoD's assistant director for military
compensation, welcomed the reduced premiums, adding that
anytime you put "more money in the pockets of military
members, it's always a good result."
Premiums will also be reduced for SGLI family coverage,
with rates varying among age groups.
The largest saving will go to spouses between 35 and 39
years old, whose premiums will be nearly cut in half.
Service members currently pay $13.00 for a $100,000 family
policy. That policy will cost $7.50 beginning in July * a
$5.50 savings.
The reduced rates means a military family will save an
average of $100 a year. The VA estimates that service
members collectively will save about $96 million annually
in premiums, and $42 million in family coverage premiums
each year.
Tower said the reduced premiums are a result of an ongoing
process to keep costs down for military members.
"The VA regularly checks to see how much is paid out versus
how much is collected in premiums, and whenever it seems
like they have built up premium reserves, they like to
reduce premiums to keep the cost to a minimum for the
member," Tower said. "Its part of the objective of the
program: to provide the lowest cost possible."
SGLI began in 1965 to meet the insurance needs of Vietnam-
era service members. Before SGLI, the military provided
$10,000 policies to service members, and policies were
available to active-duty military only.
Today the SGLI program provides coverage of $250,000 to
active duty service members and most Reservists. Coverage
of $100,000 has also been provided for spouses of
participating members with free coverage of $10,000 for
dependent children. Reduced levels of coverage may also be
elected.
Information about the change in SGLI premiums can be found
at www.insurance.va.gov, or call the Office of
Servicemembers Group Life Insurance toll-free at 1-800-419-
1473.
Sempers,
Roger
WASHINGTON, April 10, 2003— The Department of Veterans
Affairs has announced that premiums for the Service members
Group Life Insurance will be reduced, handing military
members a few extra dollars in their pockets each month.
Beginning in July, the cost for a $250,000 policy — the
maximum coverage -- will drop from $20 to $16.25 monthly, a
$3.75 savings. The Department of Veterans Affairs reports
that rates for Veterans Group Life Insurance will not
change.
Tom Tower, DoD's assistant director for military
compensation, welcomed the reduced premiums, adding that
anytime you put "more money in the pockets of military
members, it's always a good result."
Premiums will also be reduced for SGLI family coverage,
with rates varying among age groups.
The largest saving will go to spouses between 35 and 39
years old, whose premiums will be nearly cut in half.
Service members currently pay $13.00 for a $100,000 family
policy. That policy will cost $7.50 beginning in July * a
$5.50 savings.
The reduced rates means a military family will save an
average of $100 a year. The VA estimates that service
members collectively will save about $96 million annually
in premiums, and $42 million in family coverage premiums
each year.
Tower said the reduced premiums are a result of an ongoing
process to keep costs down for military members.
"The VA regularly checks to see how much is paid out versus
how much is collected in premiums, and whenever it seems
like they have built up premium reserves, they like to
reduce premiums to keep the cost to a minimum for the
member," Tower said. "Its part of the objective of the
program: to provide the lowest cost possible."
SGLI began in 1965 to meet the insurance needs of Vietnam-
era service members. Before SGLI, the military provided
$10,000 policies to service members, and policies were
available to active-duty military only.
Today the SGLI program provides coverage of $250,000 to
active duty service members and most Reservists. Coverage
of $100,000 has also been provided for spouses of
participating members with free coverage of $10,000 for
dependent children. Reduced levels of coverage may also be
elected.
Information about the change in SGLI premiums can be found
at www.insurance.va.gov, or call the Office of
Servicemembers Group Life Insurance toll-free at 1-800-419-
1473.
Sempers,
Roger