VA Life Insurance Premium Reductions for Service Members and Veterans
The Department of Veterans Affairs (VA) has announced that service members, their spouses, and Veterans covered under VA life insurance programs will benefit from lower monthly premiums starting July 1, 2025. This change reinforces the VA’s commitment to making life insurance more affordable for those who serve and their families.
Servicemembers’ Group Life Insurance (SGLI) Discounts
SGLI provides low-cost group term life insurance coverage up to $500,000 to eligible service members. The new premium rate will decrease from $0.06 per $1,000 to $0.05 per $1,000 of coverage. For the maximum $500,000 coverage, the monthly premium will now be $25, plus $1 for Traumatic Injury Protection (TSGLI). All active duty, National Guard, and Reserve service members are automatically enrolled in SGLI, and no action is required to receive the new discounted rate, as premiums are deducted from service members’ pay.
Family Servicemembers’ Group Life Insurance (FSGLI) Premium Reductions
FSGLI provides free coverage for dependent children and optional spousal coverage up to $100,000. Premium rate discounts will vary by age, ranging from 11% to 22%, with an average discount of approximately 13%. Like SGLI, no action is required for the new rates to take effect.
Veterans’ Group Life Insurance (VGLI) Discounts
VGLI allows Veterans to continue their life insurance coverage after separating from military service. Starting July 1, 2025, monthly premiums for VGLI will be reduced for all ages, with discounts ranging from 2% to 17% and an average reduction of 11%. The Office of Servicemembers’ Group Life Insurance (OSGLI) will notify insured Veterans of the changes through direct mail, email, online accounts, and premium bills. No action is required, although Veterans may need to adjust their payment amount depending on their payment method.
Importance of Life Insurance
Life insurance provides essential financial protection for families, covering expenses such as funeral costs, mortgage payments, education expenses, and lost income. It is crucial for service members and Veterans to review their coverage regularly and ensure their beneficiary information is up to date.
For more details on the new premium rates, service members, Veterans, and covered spouses can visit the VA’s website at https://www.benefits.va.gov/INSURANCE/spring2025discount.asp. Additional information about VA life insurance can be found at www.va.gov/life-insurance/.
By reducing life insurance premiums, the VA continues its commitment to supporting the financial security of service members, Veterans, and their families.
