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By Aliss Higham
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Veterans and their families will be getting a discount on their life insurance premiums starting in July.
Newsweek has contacted the Department of Veterans Affairs for comment via email outside of regular working hours.
Why It Matters
Life insurance offers financial support for families by helping to cover expenses once a person has passed, such as funeral and burial costs, mortgage or housing payments, tuition and education-related expenses, and replacement for lost income.
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Lower premiums make it easier for veterans to maintain long-term coverage and continue supporting their families' financial well-being. More than 3 million veterans, active service members and spouses are expected to be impacted by the changes.
What To Know
Servicemembers' Group Life Insurance (SGLI)
SGLI offers affordable term life insurance to eligible service members, with coverage of up to $500,000 available in $50,000 increments.
What's changing? Starting soon, the monthly premium will drop from $0.06 to $0.05 per $1,000 of coverage. This means the maximum $500,000 policy will cost $25 per month, plus $1 for Traumatic Injury Protection (TSGLI).
Who's eligible? All active duty, National Guard, and Reserve members are automatically enrolled in SGLI.
How will you be notified? The new rate will be automatically applied and reflected in payroll deductions—no separate notification is required.
Do you need to take action? No action is needed. Premiums are automatically deducted, and the discount will take effect without any steps on your part.
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Family Servicemembers' Group Life Insurance (FSGLI)
FSGLI provides no-cost coverage for dependent children and optional coverage for spouses, up to $100,000, not exceeding the service member's SGLI amount.
What's changing? Spouse coverage premiums are being reduced based on age, with discounts ranging from 11 percent to 22 percent, and an average savings of about 13 percent.
Who's eligible? Spouses and dependent children of service members enrolled in SGLI.
How will you be notified? Adjusted rates will be applied automatically—no separate notification is necessary.
Do you need to take action? No action is required. New premium rates will be reflected in regular deductions.
Veterans' Group Life Insurance (VGLI)
VGLI gives veterans the option to maintain life insurance coverage after leaving the military, helping to ensure continued financial protection. Beginning July 1, monthly VGLI premium rates will be lowered across all age groups.
What's new? The secretary of veterans affairs has authorized premium reductions between 2 percent and 17 percent, with an average drop of about 11 percent.
Who qualifies? Any veteran currently covered by VGLI.
How will you be notified? The Office of Servicemembers' Group Life Insurance (OSGLI) will contact insured veterans via direct mail, email, premium billing statements, and online account notifications.
Do you need to do anything? No immediate action is necessary. However, if you pay manually, you may need to adjust your payment to reflect the new rate.
What People Are Saying
Former VA Under Secretary for Benefits Josh Jacobs said in December 2024: "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."
What Happens Next
The changes will take effect on July 1.
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