SGLI coverage takes effect Sept. 1

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WASHINGTON (AFPN) --  The Servicemembers' Group Life Insurance maximum coverage will increase to $400,000 on Sept. 1, Department of Defense officials said.

Servicemembers eligible for SGLI will automatically be insured for the maximum coverage of $400,000. The monthly premium remains $3.25 per $50,000 of coverage, so the monthly premium for full coverage will be $26.00 beginning in September.

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

A person who wishes to retain the $400,000 of coverage with beneficiary designations as before Sept. 1 does not need to take any action. The $400,000 of coverage will apply along with the new premiums and beneficiary designations will remain the same.

Even people who had previously declined SGLI coverage or elected less than the maximum coverage, will automatically be covered for $400,000. If they wish to again decline or reduce the coverage, they must complete a new SGLV 8286 form indicating the amount of coverage desired including no coverage if applicable.

If a servicemember properly completes and submits the form before Sept. 30, he or she will not be liable for the September premium associated with the reduced or declined portion of coverage.

This gives servicemembers 30 days to reduce or decline unwanted coverage without charge. Units will be asked to process elections as expeditiously as possible to avoid the necessity for corrections in financial transactions.

The Defense Finance and Accounting Service will refund premiums deducted for coverage in September, when the servicemember files a valid election to reduce or decline the coverage between Sept. 1 and 30.

The new SGLV 8286 form is available on the Department of Veterans Affairs Web site at www.insurance.va.gov. Entries can be made on the page and then downloaded.

Valid SGLI elections become effective the first day of the month after properly submitting the election form. So, all U.S. servicemembers will be fully insured for $400,000 throughout the month of September, regardless of any election filed before or during September.

If a servicemember dies in September after completing an election for reduced coverage or no coverage, his or her beneficiaries will still receive a $400,000 payment. Those electing to decline or reduce coverage during September will essentially receive the September automatic coverage at no cost.

Servicemembers who do not make an election to reduce or decline coverage from the $400,000 level before Oct. 1 will pay the premium for the full $400,000 of coverage for September as well as for any other month in which the level of coverage remains in effect.

When a servicemember properly completes and submits SGLV Form 8286 on or after Oct. 1 to reduce or decline coverage, the reduction is effective the first day of the month after the form is properly submitted.