The Department of Veterans Affairs (VA) is bringing significant financial relief to Veterans, active-duty service members, Reservists, National Guard members, and their families. On December 12, 2024, the VA announced that over 3 million policyholders enrolled in VA-administered life insurance programs will benefit from reduced premiums starting in the spring of 2025.
This landmark move ensures that coverage remains affordable, providing peace of mind to those who have served and continue to serve. The premium reductions apply to Veterans’ Group Life Insurance (VGLI), Servicemembers’ Group Life Insurance (SGLI), and Family Servicemembers’ Group Life Insurance (FSGLI).
Let’s dive into the details of these updates, the beneficiaries, and what this means for America’s military community.
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Details of the Premium Discounts
The upcoming premium reductions vary across programs and policyholders, targeting both current enrollees and new participants in these VA life insurance programs.
Veterans: Veterans’ Group Life Insurance (VGLI)
Approximately 450,000 Veterans enrolled in VGLI will see their premiums reduced by 2% to 17%, depending on their age. The average discount across this group is 11%.
- Example: Younger Veterans in the program may experience higher percentage discounts, while older Veterans’ reductions will be proportional to their age group.
Service Members: Servicemembers’ Group Life Insurance (SGLI)
More than 2 million active-duty members, Reservists, and National Guard members enrolled in SGLI will also see significant savings.
- The premium rate per $1,000 of coverage will decrease from $0.06 to $0.05, effectively lowering the monthly cost of maximum coverage ($500,000) from $30 to $25.
- With the addition of $1 per month for SGLI Traumatic Injury Protection (TSGLI), most service members with maximum coverage will now pay just $26 per month.
Spouses: Family Servicemembers’ Group Life Insurance (FSGLI)
Approximately 870,000 spouses covered under FSGLI will benefit from premium discounts ranging from 11% to 22%, based on the spouse’s age. The average discount across this group is 13%.
- Younger spouses in the program will see the most substantial savings, reflecting the program’s design to ensure affordability across different age groups.
Why This Matters: Historic Coverage and Financial Relief
This is the first major reduction in life insurance premiums for these VA-administered programs in recent years, and it comes as the VA continues to expand its reach. The VA is currently providing more life insurance coverage to more individuals than ever before:
- 5.6 million Veterans, service members, and their families are covered under VA life insurance programs.
- These policies collectively provide an impressive $1.5 trillion in insurance coverage.
VA Under Secretary for Benefits Josh Jacobs highlighted the importance of this initiative:
“These premium discounts will make insurance even more affordable for Veterans, service members, and their spouses. Veterans and service members deserve to know that their families will have financial support when they pass away — and we’re glad to be taking this step to provide eligible enrollees with greater peace of mind at lower costs.”
Who Benefits and How to Access These Savings
All eligible policyholders — current and future — will automatically receive the discounted rates starting in the spring of 2025. No action is required from those already enrolled in SGLI, FSGLI, or VGLI to benefit from the lower premiums.
However, this announcement is also a call to action for Veterans who have not yet taken advantage of VA life insurance options. Signing up for these programs now offers an opportunity to secure financial protection for their families at reduced rates.
Key Programs and Coverage:
- Veterans’ Group Life Insurance (VGLI): Long-term, renewable life insurance for Veterans transitioning from military service.
- Servicemembers’ Group Life Insurance (SGLI): Low-cost life insurance for active-duty, Reserve, and National Guard members.
- Family Servicemembers’ Group Life Insurance (FSGLI): Life insurance coverage for spouses and dependent children of service members.
How to Enroll or Learn More
The VA encourages eligible Veterans, service members, and their families to explore their life insurance options. Information on SGLI, FSGLI, VGLI, and other VA life insurance programs is available on the VA’s life insurance website or through local VA offices.
A Bright Future for Military Families
The VA’s reduction in life insurance premiums demonstrates its ongoing commitment to the financial well-being of Veterans, service members, and their loved ones. As the cost of living rises, these savings provide meaningful relief while ensuring that families are protected in the long term.
With this update, the VA not only strengthens its support for America’s military community but also sets the stage for future enhancements to ensure affordable and accessible insurance for all who serve.
Let me know if you’d like additional refinements or specific details!
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