Shinseki Announces VA Cutting Insurance Premiums for Families
April 30, 2010
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WASHINGTON (April 29, 2010) – Secretary of Veterans Affairs Eric K.
Shinseki announced today that military personnel insuring their families
under the Servicemembers' Group Life Insurance (SGLI) program, which is
administered by the Department of Veterans Affairs, will have reduced
out-of-pocket expenses beginning July 1.
"VA hopes these reductions will allow more military personnel to obtain
affordable life insurance coverage for their spouses, particularly in
these difficult economic times," said Shinseki. "Without insurance
protection, life after the loss of a spouse can be not only challenging
emotionally, but can place a severe financial strain on a family."
Family SGLI (FSGLI) monthly premium rates will be reduced for all age
groups by an average of 8 percent. The new rates are based on revised
estimates for the cost of the program. This is the third time that
premiums have been reduced since the FSGLI program began in November
2001. Spousal premiums were previously reduced for all age groups in
2003 and 2006.
FSGLI coverage provides life insurance protection to military personnel
for their spouses and children. Children are automatically insured for
$10,000, with no premiums charged.
Based on the coverage of service members, spouses may be insured for up
to $100,000. Military personnel pay age-based premiums for spousal
coverage — the older the spouse, the higher the premium rate.
The premium reduction ensures FSGLI remains highly competitive compared
to commercial insurers.
FSGLI coverage is available in increments of $10,000. The current and
revised monthly premium rates per $10,000 of insurance, along with other
information, are available on the Internet at www.insurance.va.gov.