Peake: Change Makes Programs More Affordable
WASHINGTON, April 7, 2008 /PRNewswire-USNewswire/ -- Veterans and military personnel with life insurance policies managed by the Department of Veterans Affairs (VA) will see a reduction in their premiums, thanks to improved investment earnings and a reduction in non-combat claims.
The premium cuts affect military personnel covered by Servicemembers' Group Life Insurance (SGLI) and veterans covered by the Veterans' Group Life Insurance (VGLI).
"The reduction in SGLI premiums makes life insurance even more affordable for today's men and women in uniform," said Secretary of Veterans Affairs Dr. James B. Peake. "Lower VGLI premiums will allow more veterans to provide this low-cost financial security to their families."
On July 1, 2008, the premiums for basic SGLI will be 6.5 cents per month for $1,000 of coverage, down from 7 cents per month for $1,000. This translates into a 7 percent savings.
Servicemembers with the maximum $400,000 of coverage will see their monthly premium reduced from $28 to $26. Servicemembers are also covered against severe traumatic injury for an additional dollar each month.
The reduction in SGLI premiums is made possible by lower, non-combat-related claims and increases in investment earnings. VA officials believe this premium reduction will help maintain the nearly universal participation in the program.
VGLI provides renewable term policies for people after their discharges from the military. Veterans pay premiums according to their age for this coverage.
On July 1, 2008, VGLI premium rates will be reduced for veterans aged 30 to 64, who make up 85 percent of those insured under the program. Premium rates for those under age 30 are already competitive.
Premium reductions, ranging from 4 percent to 12 percent, are a result
of fewer claims being received. The reductions will ensure that VGLI
remains highly compet
|SOURCE U.S. Department of Veterans Affairs|
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