This article by Karen Jowers originally appeared on Military Times, the nation's largest independent newsroom dedicated to covering the military and veteran community.
About 2.1 million service members are seeing a slight bump in their paycheck, as the monthly premiums for life insurance for themselves and their spouses have decreased, effective July 1.
For those with the maximum $400,000 coverage under the Servicemembers’ Group Life Insurance, or SGLI, the premium has decreased by $4 a month, from $29 to $25. Most service members have the maximum coverage.
The Department of Veterans Affairs, which administers the service member life insurance programs, regularly reviews the claims numbers and the financial position of the programs. They’ve reduced the SGLI rate from 7 cents per month per $1,000 of insurance to 6 cents per month per $1,000.
“VA continues to place the interests of service members and their families first by keeping SGLI premiums as low as possible, while ensuring funds are available to pay claims to beneficiaries,” said VA Secretary Robert Wilkie in an announcement of the rate decreases.
Service members can purchase SGLI coverage in increments of $50,000, up to $400,000. The coverage includes $1 a month for Traumatic Injury Protection coverage, or TSGLI.
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