Service members, their families, and veterans will experience a decrease in their life insurance costs, effective July 1.
Service Members’ Group Life Insurance (SGLI)
For active duty military personnel, the monthly premiums for Service Members’ Group Life Insurance (SGLI) coverage will decrease from 6 cents to 5 cents per $1,000 of coverage. In addition to the monthly premium, service members continue to pay $1 per month for SGLI Traumatic Injury Protection coverage.
For example, with the reduction in premiums, a service member with the maximum SGLI coverage of $500,000 will now pay $26 monthly — including the $1 for Traumatic SGLI — down from the current $31. All service members pay the same rate, regardless of age, with coverage available in increments of $50,000.
According to the Department of Veteran Affairs, which administers the programs, these reductions are a result of the “sound financial standing” of the insurance programs. The reductions will be automatic, meaning service members and veterans don’t need to take any action.
Family SGLI
For spouses covered by Family SGLI, premiums will decrease by an average of 13%, with a range of 11% to 22%, according to the VA. Rates vary by the spouse’s age. For instance, premiums for a spouse under 35 will drop from $4.50 to $4 per month for the maximum $100,000 of coverage. Premiums for spouses between the ages of 40 and 44 will drop from $7 to $6.20 per month.
If the spouse is enrolled in the Defense Enrollment Eligibility Reporting System (DEERS), the premium is automatically deducted from the service member’s pay. If the spouse is not in DEERS, the service member remains responsible for paying the premiums. Coverage for spouses is available in increments starting at $10,000.
Veterans Group Life Insurance (VGLI)
For veterans covered by Veterans Group Life Insurance (VGLI), the decreases will average about 11%, with reductions ranging from 2% to 17%. VGLI premiums vary by age. However, unlike service members’ rates, VGLI rates increase every five years as the veteran ages, starting at age 30. For veterans age 29 and younger, the monthly cost for $500,000 of coverage will be $30, a decrease of $5 from the current premium. For $100,000 of coverage, the cost will be $6 per month, down by $1.
For veterans age 40 to 44, the monthly premium for $500,000 of coverage will drop by $10 to $70. Meanwhile, for those 80 and older, the monthly premium for $500,000 will decrease from $2,250 to $2,200.
SGLI coverage doesn’t automatically carry over after leaving the military. Anyone leaving the military with SGLI coverage qualifies to sign up for VGLI, although there are time limits. However, VGLI is more expensive than SGLI, so experts recommend exploring other life insurance options. An advantage of VGLI is that those who sign up within 240 days of departing the military do not need to provide proof of good health.
