SGLI cost reduced; coverage remains same

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The amount airmen pay for Servicemembers' Group Life Insurance and Family Member SGLI will be automatically reduced starting July 1.

Decreased mortality rates allow for the reductions of 1.5 cents per $1,000 of coverage for military people and as much as a 42 percent decrease for spouse coverage. The premium for servicemembers with $250,000 of coverage will decease from $20 per month to $16.25.

"(Veterans Affairs) had a surplus partly because of the low number of claims, and they've decided to pass this surplus on to the servicemember," said Scott Hand, chief of Air Force casualty operations at the Air Force Personnel Center here. "This is a great deal for Air Force people. The price for a little peace of mind has just gone down."

SGLI is the life insurance currently available to all members of the uniformed services. It is purchased by Veterans Affairs from a commercial life insurance company. Members on active duty, active duty for training or inactive duty for training and members of the ready reserve are eligible for insurance through this program. SGLI is available for the member in $10,000 increments up to a maximum of $250,000.

Servicemembers who carry any amount of coverage are also given $10,000 of coverage for each dependent child at no cost. Those who decline SGLI coverage are not eligible for the dependent child coverage.

"Where else can you get free life insurance for your children?" said Hand.

Similar to SGLI is the FSGLI, which covers spouses for up to $100,000. Participation in the FSGLI program is voluntary and cannot exceed the amount of coverage the servicemember carries.

People can have coverage restored, increased or reduced by filling out the proper paperwork through the military personnel flight.