SERVICE MEMBERS GROUP LIFE INSURANCE PROGRAM CHANGES

RAAUZYUW RUEWMCS0000 2440159-UUUU--RUCRNAD.
ZNR UUUUU 
R 011210Z SEP 05 
FM CNO WASHINGTON DC//N1NT//
TO NAVADMIN
UNCLAS //N01772//
NAVADMIN 218/05
MSGID/GENADMIN/CNO WASHINGTON DC/N1NT/SEP//
SUBJ/SERVICE MEMBERS GROUP LIFE INSURANCE PROGRAM CHANGES//



GENTEXT/REMARKS/1.  EFFECTIVE 1 SEPTEMBER 2005, THE EMERGENCY
SUPPLEMENTAL APPROPRIATIONS ACT FOR DEFENSE, THE GLOBAL WAR ON
TERRORISM, AND TSUNAMI RELIEF, 2005 INCREASES THE SERVICE MEMBERS'
GROUP LIFE INSURANCE (SGLI) MAXIMUM COVERAGE TO $400,000 AND ALLOWS
REDUCED ELECTIONS IN INCREMENTS OF $50,000.
2.  FROM 1 SEPTEMBER 2005 THROUGH 30 SEPTEMBER 2005, ALL MILITARY
MEMBERS WILL BE INSURED FOR THE MAXIMUM COVERAGE OF $400,000 UNLESS
A NEW ELECTION FORM TO REDUCE OR DECLINE COVERAGE IS SUBMITTED.  THE
REVISED SGLV FORM 8286 IS EXPECTED TO BE AVAILABLE TODAY.
THESE CHANGES WILL NOT AFFECT COVERAGE UNDER FAMILY SGLI (FSGLI).
SUCH COVERAGE AND LIMITATIONS CONTINUE UNDER PREVIOUSLY EXISTING
RULES.  THE MONTHLY SGLI PREMIUM WILL REMAIN AT $3.25 PER $50,000 OF
COVERAGE, THEREFORE THE MONTHLY PREMIUM FOR FULL COVERAGE WILL
INCREASE TO $26.
3.  DESIGNATION OF BENEFICIARIES:  EXISTING BENEFICIARY DESIGNATIONS
REMAIN EFFECTIVE IN THE SAME PROPORTION AS DESIGNATED IN THE LAST
VALID SGLV 8286.  SUCH BENEFICIARY PROPORTIONAL DESIGNATIONS REMAIN
EFFECTIVE UNTIL A NEW SGLV 8286 (SEPTEMBER 2005 VERSION) IS PROPERLY
COMPLETED AND FILED ON OR AFTER 1 SEPTEMBER 2005.  A MEMBER WHO
WISHES TO RETAIN THE $400,000 COVERAGE WITH BENEFICIARY DESIGNATIONS
IN THE SAME PROPORTION AS BEFORE 1 SEPTEMBER 2005 DOES NOT REQUIRE
ACTION.  THE INCREASED COVERAGE ALONG WITH THE REQUISITE PREMIUMS
AND BENEFICIARY DESIGNATIONS WILL BE RETAINED AS APPLICABLE TO THE
ELECTION IN EFFECT JUST BEFORE 1 SEPTEMBER 2005.
4.  PREMIUM LIABILITY:  ALL MEMBERS ELIGIBLE FOR SGLI COVERAGE WILL
BE CHARGED THE FULL $26 MONTHLY PREMIUM PLUS ANY APPLICABLE
FSGLI PREMIUM UNLESS THEY FILE A NEW SGLV FORM 8286 ON OR AFTER
1 SEPTEMBER 2005.  SHOULD A MEMBER DESIRE LESS THAN THE AUTOMATIC
MAXIMUM COVERAGE, THAT MEMBER SHOULD COMPLETE A NEW SGLV 8286
(SEPTEMBER 2005 VERSION) INDICATING THE AMOUNT OF COVERAGE DESIRED
(INCLUDING NO COVERAGE IF APPLICABLE) AND SUBMIT THAT ELECTION AS
SOON AS POSSIBLE.  IF A MEMBER PROPERLY COMPLETES AND SUBMITS THE
FORM DURING THE MONTH OF SEPTEMBER 2005, THE MEMBER WILL NOT BE
LIABLE FOR THE FULL MONTHLY PREMIUMS BUT ONLY THOSE ASSOCIATED WITH
THE REDUCED PORTION OR DECLINED COVERAGE.  THIS PROVIDES MEMBERS 30
DAYS TO REDUCE OR DECLINE UNWANTED SGLI COVERAGE WITHOUT CHARGE.
UNITS WILL PROCESS ELECTIONS AS EXPEDITIOUSLY AS POSSIBLE TO AVOID
THE NECESSITY FOR CORRECTIONS IN FINANCIAL TRANSACTIONS.  THE
DEFENSE FINANCE AND ACCOUNTING SERVICE-CLEVELAND (DFAS-CL) WILL
REFUND PREMIUMS DEDUCTED FOR COVERAGE IN SEPTEMBER WHEN THE MEMBER
FILES A VALID ELECTION TO REDUCE OR DECLINE FULL COVERAGE BETWEEN
1 SEPTEMBER AND 30 SEPTEMBER 2005.
5.  ELECTIONS AFTER 30 SEPTEMBER 2005:  A MEMBER WHO DOES NOT MAKE
AN ELECTION TO REDUCE OR DECLINE COVERAGE BEFORE 1 OCTOBER 2005,
WILL BE CHARGED FOR THE FULL $400,000 OF COVERAGE FOR SEPTEMBER 2005
AS WELL AS FOR ANY OTHER MONTH IN WHICH THAT LEVEL OF COVERAGE
REMAINS IN EFFECT.  WHEN A MEMBER PROPERLY COMPLETES AND SUBMITS AN
SGLV FORM 8286 ON OR AFTER 1 OCTOBER 2005, TO REDUCE OR DECLINE
COVERAGE, SUCH REDUCTION IS EFFECTIVE THE FIRST DAY OF THE MONTH
FOLLOWING PROPER SUBMISSION OF THE SGLV FORM 86.  THEREFORE, THE
MEMBER REMAINS LIABLE FOR THE FULL PREMIUM THROUGH THE END OF THE
MONTH IN WHICH THE ELECTION WAS FILED.
6.  EXAMPLES:
    A.  A MEMBER CHOOSES TO REDUCE COVERAGE TO $300,000, COMPLETES A
NEW SGLV FORM 8286 ON 15 SEPTEMBER 2005, AND SUBMITS THE FORM TO
HIS/HER UNIT ON THE SAME DAY.  THAT MEMBER'S SEPTEMBER 2005 PREMIUM
IS $19.50.  IT IS LIKELY THAT THE DFAS-CL WILL DEDUCT THE FULL
COVERAGE PREMIUM OF $26 FOR SEPTEMBER BUT WILL LATER REFUND THE
$6.50 OVERCHARGE ONCE THE ELECTION IS RECORDED.  THE MEMBER WILL
HAVE $400,000 COVERAGE FROM 1 SEPTEMBER THROUGH 30 SEPTEMBER AND
$300,000 COVERAGE BEGINNING 1 OCTOBER 2005.
    B.  A MEMBER CHOOSES TO REDUCE COVERAGE TO $300,000, COMPLETES
AND SUBMITS A NEW SGLV FORM 8286 ON 15 OCTOBER 2005.  THE MEMBER IS
LIABLE FOR MAXIMUM COVERAGE PREMIUMS IN BOTH SEPTEMBER AND OCTOBER
2005.  THE NEWLY ELECTED COVERAGE IS EFFECTIVE 1 NOVEMBER 2005.
THIS MEMBER'S PREMIUMS WOULD BE $26 FOR SEPTEMBER, $26 FOR OCTOBER
AND $19.50 FOR NOVEMBER 2005.  THE MEMBER WILL HAVE $400,000
COVERAGE FROM 1 SEPTEMBER THROUGH 31 OCTOBER AND $300,000 COVERAGE
BEGINNING 1 NOVEMBER 2005.
7.  THE SGLV FORM 8286 (SEPTEMBER 2005) VERSION WILL BE AVAILABLE ON
THE DEPARTMENT OF VETERAN'S AFFAIRS (DVA) WEBSITE AT
WWW.INSURANCE.VA.GOV.  FOR MEMBERS CONVENIENCE, IT IS AN
ELECTRONIC FORM (ENTRIES CAN BE MADE ON THE PAGE, THEN DOWNLOADED).
ORIGINAL SIGNATURES MUST APPEAR ON ALL COPIES.  DISTRIBUTION OF THE
COPIES OF THIS FORM ARE AS FOLLOWS:
    A.  ORIGINAL:  FORWARD TO THE COMMANDER, NAVY PERSONNEL COMMAND
(COMNAVPERSCOM) (PERS 312E) FOR FILING IN THE PERMANENT PERSONNEL
RECORD.
    B.  FIRST COPY:  PROVIDED TO THE MEMBER FOR THEIR PERSONAL FILE.
    C.  SECOND COPY:  FOR OFFICERS, FILE IN THE COMMAND'S
CORRESPONDENCE FILE.  FOR ENLISTED MEMBERS, PROMPTLY FILE BEHIND THE
NAVPERS 1070/602, RECORD OF EMERGENCY DATA/DEPENDENCY APPLICATION
(PAGE 2) IN THE MEMBER'S SERVICE RECORD.
8.  MEMBERS ARE ADVISED TO GIVE CAREFUL CONSIDERATION WHEN
DESIGNATING A MINOR CHILD AS AN SGLI BENEFICIARY.  BEFORE MAKING
SUCH A DESIGNATION, MEMBERS SHOULD CONSULT WITH A PROBATE LAWYER OR
NAVY LEGAL SERVICE OFFICE FOR GUIDANCE AND OR ASSISTANCE.  VARYING
STATE PROBATE LAWS MAY HINDER THE RECEIPT OF MONIES LEFT TO A MINOR
CHILD.
9.  POC:  LT GLASGOW AT (901) 874-4254/DSN 882-4254 OR EMAIL AT
TERRENCE.GLASGOW@NAVY.MIL.
10.  RELEASED BY W. SCOTT SLOCUM, N1/NT, ACTING.//
BT
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