SERVICE MEMBERS’ GROUP LIFE INSURANCE AND FAMILY SERVICE MEMBERS’ GROUP LIFE INSURANCE PREMIUM CHANGES EFFECTIVE 1 JULY 2006

RAAUZYUW RUENAAA0565 1770740-UUUU--RUHQCNU.
ZNR UUUUU ZUI RUEWMCS5271 1771315
R 260740Z JUN 06 ZYB MIN ZYW
FM CNO WASHINGTON DC//N1//
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INFO RHMFIUU/CNO WASHINGTON DC//N1// 
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UNCLAS//N01770//
NAVADMIN 187/06
MSGID/GENADMIN/CNO WASHINGTON DC/N1/JUN//
SUBJ/SERVICE MEMBERS' GROUP LIFE INSURANCE AND FAMILY SERVICE


MEMBERS' GROUP LIFE INSURANCE PREMIUM CHANGES EFFECTIVE 1 JULY 2006//
GENTEXT/REMARKS/1. THE DEPARTMENT OF VETERANS AFFAIRS HAS ANNOUNCED
A CHANGE TO SERVICE MEMBERS' GROUP LIFE INSURANCE (SGLI) AND FAMILY
SGLI (FSGLI) RATES THAT IS EFFECTIVE 1 JULY 2006.
2. SGLI PREMIUM RATES PER $1,000 OF COVERAGE WILL INCREASE 7 CENTS
PER MONTH. FOR EXAMPLE, SAILORS COVERED FOR THE MAXIMUM $400,000
WILL SEE THEIR MONTHLY PREMIUM INCREASE FROM $27 TO $29. INCLUDED AS
PART OF THE $29 PREMIUM IS A MANDATORY $1 PER MONTH CHARGE FOR
TRAUMATIC INJURY PROTECTION UNDER SGLI (TSGLI).
A. SAILORS WHO ELECTED LESS THAN FULL COVERAGE WILL NOT HAVE TO
SUBMIT A SGLV FORM 8286A TO MAINTAIN THEIR PRESENT COVERAGE. FOR
EXAMPLE, A SAILOR WHO ELECTED $200,000 VICE $400,000 COVERAGE, WILL
PAY $15, WHICH INCLUDES THE MANDATORY $1 PER MONTH CHARGE FOR TSGLI. 
RESERVE MEMBERS DRILLING FOR POINTS AND IN A NON-PAY STATUS CURRENTLY
COVERED UNDER SGLI WILL BE BILLED FOR THE HIGHER PREMIUM BEGINNING 1
JULY 2006.
B. SGLI PREMIUMS ARE INCREASING BECAUSE THE CURRENT SGLI PREMIUM
RATE IS BELOW THE "BREAK-EVEN" POINT AND THEREFORE IS INSUFFICIENT TO
COVER THE COST OF PEACETIME CLAIMS (NOTE: THE COST OF WARTIME SGLI
CLAIMS IS BORNE BY THE UNIFORMED SERVICES, NOT BY SERVICE MEMBERS).
3. FSGLI PREMIUM RATES FOR ALL AGE BRACKETS WILL SEE A REDUCTION
BEGINNING 1 JULY 2006, BECAUSE OF "FAVORABLE CLAIMS EXPERIENCE."
4. ADDITIONAL INFORMATION ABOUT SGLI AND FSGLI RATE CHANGES AND
ANSWERS TO FREQUENTLY ASKED QUESTIONS ARE AVAILABLE AT
WWW.INSURANCE.VA.GOV.
5. POC: AVCM R. GALLAUGHER AT 1-800-368-3202 OR EMAIL AT
RALPH.GALLAUGHER@NAVY.MIL.
6. RELEASED BY VADM J. C. HARVEY, JR., N1.//
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