SGLI premium rate changes July 1 Published June 27, 2006 WASHINGTON (AFPN) -- The monthly premium rate for basic Servicemember's Group Life Insurance increases by 5 cents per month for each $10,000 of coverage, from 65 cents per month per $10,000 to 70 cents per month per $10,000, effective July 1. On the same date, family SGLI premiums will decrease across the board. The most recent SGLI premium change occurred in July 2003, when the monthly premium rate for basic SGLI was reduced from 80 cents per $10,000 of insurance to 65 cents per $10,000. That change was made to reduce surplus reserve funds in the program.A small increase in the SGLI premium rate is now necessary for the program to remain in sound financial condition, while covering the cost of peacetime claims. The cost of wartime SGLI claims is borne by the uniformed services, not by servicemembers. As a result of this increase, members who have the maximum $400,000 of SGLI coverage will see their monthly SGLI deduction from service pay increase by $2 a month, from $27 to $29, beginning with their July pay. This monthly SGLI premium includes a $1 per month charge for traumatic injury protection coverage, which took effect Dec. 1 and provides payments of up to $100,000 for serious traumatic injuries. Also in July, family SGLI monthly premium rates will be reduced for all age groups by an average of 10 percent. The new rates reflect better-than-expected claims experience for each age group in the family SGLI program.