DoD extends deadline for increased SGLI coverage for Katrina victims

  • Published
WASHINGTON (AFPN) --  The Department of Defense announced today the deadline for reducing or declining increased Servicemembers' Group Life Insurance coverage has been extended for servicemembers affected by Hurricane Katrina.

Maximum SGLI coverage increased to $400,000 on Sept. 1. On that date, members eligible for SGLI were automatically insured for the maximum coverage of $400,000. The monthly SGLI premium remained at $3.25 per $50,000 of coverage, so the monthly premium for full coverage is $26.

These changes do not affect coverage under Family SGLI, which will continue under previously existing elections.

Those who wish to keep the $400,000 of coverage with the same beneficiary designations as before Sept. 1 do not need to take any action. The $400,000 of coverage will apply along with the new premiums. The beneficiary designations will remain the same as in effect before Sept. 1.

If a member wishes to again decline or reduce the coverage, they must complete a new SGLV 8286 -- September 2005 version -- at www.insurance.va.gov indicating the amount of coverage desired, including no coverage if applicable. 

If customers properly completed and submitted this form before Sept. 30, they would not be liable for the September 2005 premium associated with the reduced or declined portion of coverage. Subject to verification by a member's commanding officer or unit official, the date to make an election and not be liable for premiums will be extended to Nov. 30, if a member was unable to make an election due to Hurricanes Katrina or Rita.

This extension will apply to service members following an order or authorization to evacuate due to Hurricanes Katrina or Rita as well as those involved in rescue and clean-up operations. 

It also gives members in the affected areas 90 days to reduce or decline unwanted coverage without charge.

Units will be asked to process elections as soon as possible to avoid the necessity for corrections in financial transactions. The Defense Finance and Accounting Service will refund premiums deducted for coverage in prior months when the member files a valid election to reduce or decline the coverage between Sept. 1 and Nov. 30, 2005.