This article by Jim Absher first appeared on Military.com, the premier resource for the military and veteran community.
The costs of Servicemembers' Group Life Insurance (SGLI) and Family Servicemembers' Group Life Insurance (FSGLI) will be decreasing on July 1, 2019.
SGLI is a Department of Veterans Affairs life insurance program that all military members are eligible for, while FSGLI is a life insurance program for their dependents.
The new monthly SGLI cost will be 6 cents per $1,000 of coverage, or $24 monthly for the maximum coverage of $400,000. Previously, it cost 7 cents per $1,000 of coverage, or $29 per month for full coverage.
These amounts include a mandatory $1 monthly charge for Traumatic Injury Servicemembers' Group Life Insurance (TSGLI), which is a special program that provides short-term financial assistance to severely injured members who have traumatic injuries.
FSGLI includes an automatic free $10,000 of life insurance for dependent children; the monthly premium for a spouse is based on their age. Previously, the monthly premium ranged from $0.50 per $1,000 coverage for a spouse under 35 to $5.00 per $1,000 coverage for a spouse over 65. Those rates will drop to $0.45 and $4.50 respectively.
You can buy SGLI in increments of $50,000 up to a maximum coverage of $400,000. FSGLI coverage amounts range from $10,000 to $100,000 but cannot exceed the SGLI coverage amount.
No action is necessary to take advantage of the new lower rates. Adjustments will be automatic and reflected on your leave and earnings statement.
To make changes to your SGLI or FSGLI coverage, contact your personnel office or update your selection in the SGLI Online Enrollment System (SOES).
Get the Latest Financial Tips
Whether you're trying to balance your budget, build up your credit, select a good life insurance program or are gearing up for a home purchase, Military.com has you covered. Sign up for a free membership and get the latest military benefit updates and tips delivered straight to your inbox.
Other articles by Military.com: