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.
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