WASHINGTON (April 7, 2008) - 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.
Financial Assessment for health care
Certain veterans applying for enrollment for health care must provide VA with information on their annual income and net worth to determine whether they are below the Means Test Threshold. For those veterans who measure above the Means Test, the law requires that the veteran agrees to pay a co-payment.
