In July 2003, the Department of Veterans Affairs (VA) will reduce its Servicemembers Group Life Insurance (SGLI) premiums. The new premiums will be about 19 percent less than the current premiums, dropping the monthly payments from $20 to $16.25 for the maximum coverage of $250,000.
Family coverage costs will also decline. Spouses' premiums for up to $100,000 coverage will decline a maximum of 42 percent, depending on the age group. Children of servicemembers who have SGLI receive $10,000 of free coverage.
In announcing the new reduction, Secretary of Veterans Affairs Anthony J. Principi said, "Ideally, military members and their families will never need to collect from their SGLI policies, but if the need does arise, we want them to have as much insurance protection as possible at the lowest rate possible."