Mandatory Increase in Life Insurance
NOTE that increased coverage is MANDATORY unless declined. Ensure this information receives widest possible dissemination.
Servicemembers' Group Life Insurance Coverage Increases September 1
WASHINGTON-6/15/05-The maximum level of Servicemembers' Group Life Insurance coverage will be increased from $250,000 to $400,000 on September 1, 2005.
Anyone in military service on September 1, 2005, will have their coverage increased to $400,000, even if they previously declined or elected lesser coverage. If they still desire no coverage or less than the maximum, they will have to go their Personnel Office and re-elect no coverage or less than the maximum.
Servicemembers can only elect coverage in increments of $50,000. Previously, members could elect coverage in increments of $10,000.
The SGLI coverage amounts available will be:
$50,000 - $250,000$100,000 - $300,000$150,000 - $350,000$200,000 - $400,000
Members in the VGLI Program before September 1, 2005 will not be affected. However, all separating servicemembers covered under SGLI on or after September 1, in an amount greater than $250,000 will able to convert to VGLI at the new higher level.
The premium rates for SGLI coverage will remain the same. Currently, the rate is 6.5 cents per $1,000 per month, or $16.25 per month for $250,000. Therefore, if a member elects the new maximum coverage of $400,000, they will pay $26.00 per month.
SGLI members serving in areas or operations designated by the Secretary of Defense as combat operations or zones of combat will have the premiums for $150,000 of coverage paid for by the Department of Defense. This is only while they are serving in designated areas or operations. Once they are no longer serving in such an area they will once again have to pay the premiums themselves.
The Department of Defense will be paying a death gratuity of $150,000 for deaths that occurred in specified combat conditions on or after October 7, 2001 but before September 1, 2005 or were incurred in the theater of operations of Operations Enduring and Iraqi Freedom. This gratuity is in addition to the existing Department of Defense death gratuity that is increasing from $12,420 to $100,000 for the same group of servicemembers.
Story Courtesy of the National Guard Bureau
Servicemembers' Group Life Insurance Coverage Increases September 1
WASHINGTON-6/15/05-The maximum level of Servicemembers' Group Life Insurance coverage will be increased from $250,000 to $400,000 on September 1, 2005.
Anyone in military service on September 1, 2005, will have their coverage increased to $400,000, even if they previously declined or elected lesser coverage. If they still desire no coverage or less than the maximum, they will have to go their Personnel Office and re-elect no coverage or less than the maximum.
Servicemembers can only elect coverage in increments of $50,000. Previously, members could elect coverage in increments of $10,000.
The SGLI coverage amounts available will be:
$50,000 - $250,000$100,000 - $300,000$150,000 - $350,000$200,000 - $400,000
Members in the VGLI Program before September 1, 2005 will not be affected. However, all separating servicemembers covered under SGLI on or after September 1, in an amount greater than $250,000 will able to convert to VGLI at the new higher level.
The premium rates for SGLI coverage will remain the same. Currently, the rate is 6.5 cents per $1,000 per month, or $16.25 per month for $250,000. Therefore, if a member elects the new maximum coverage of $400,000, they will pay $26.00 per month.
SGLI members serving in areas or operations designated by the Secretary of Defense as combat operations or zones of combat will have the premiums for $150,000 of coverage paid for by the Department of Defense. This is only while they are serving in designated areas or operations. Once they are no longer serving in such an area they will once again have to pay the premiums themselves.
The Department of Defense will be paying a death gratuity of $150,000 for deaths that occurred in specified combat conditions on or after October 7, 2001 but before September 1, 2005 or were incurred in the theater of operations of Operations Enduring and Iraqi Freedom. This gratuity is in addition to the existing Department of Defense death gratuity that is increasing from $12,420 to $100,000 for the same group of servicemembers.
Story Courtesy of the National Guard Bureau
posted by Heather Altman, MA @ 9:28 AM
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