Starting July 1, 2025, the U.S. Department of Veterans Affairs (VA) will implement significant premium reductions across three of its major life insurance programs. These include Servicemembers’ Group Life Insurance (SGLI), Family Servicemembers’ Group Life Insurance (FSGLI), and Veterans’ Group Life Insurance (VGLI).
The goal is clear: to make life insurance more affordable for active-duty personnel, Veterans, and their families. The VA has confirmed that most of the changes will happen automatically, requiring no action from those currently enrolled.
Lower Costs for Active Duty Members (SGLI Premium Cuts)
The SGLI program primarily covers active-duty military personnel, including National Guard and Reserve members. Under the new rates, monthly premiums for SGLI will be reduced from \$0.06 to \$0.05 per \$1,000 of coverage. This means:
- \$500,000 coverage will now cost just \$26/month, down from \$31.
- The rate includes \$1 for Traumatic Injury Protection (TSGLI).
Since SGLI premiums are automatically deducted from military pay, the rate adjustment will be seamless for service members. No special enrollment or opt-in process is necessary.
Spouses Also See Lower Premiums (FSGLI Rate Drops)
Spouses covered under the FSGLI program will also benefit from lower monthly costs. FSGLI offers up to \$100,000 in coverage for spouses, with premiums based on age.
Effective July 1, 2025:
- Premiums will be reduced by 11% to 22%, depending on the age group.
- The average savings is estimated at 13% per household.
Children’s coverage remains unchanged at \$10,000 and continues to be free for all eligible dependents.
These changes will also apply automatically. However, service members are encouraged to review their insurance elections via the SGLI Online Enrollment System (SOES) through milConnect to confirm that their spouse’s coverage information is up to date.
Veterans Benefit Too (VGLI Premium Reductions)
Veterans enrolled in the Veterans’ Group Life Insurance (VGLI) program will also see their premiums drop. The exact discount varies based on age, with reductions ranging from:
- 2% to 17%, with an average savings of around 11% per month.
VGLI enables Veterans to maintain the same level of coverage they had under SGLI after separating from military service. Coverage can go up to \$500,000.
Veterans will receive notifications via:
- Online account alerts
Those who pay via bank drafts or recurring billing should check their payment setups after July 1 to ensure the correct amount is being processed.
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At-a-Glance Comparison of Rate Changes
| Program | Old Monthly Rate | New Monthly Rate | Average Savings |
|---|---|---|---|
| SGLI | \$0.06 per \$1,000 | \$0.05 per \$1,000 | ~17% |
| FSGLI | Varies by age | Lowered rates | 11%–22% (avg. 13%) |
| VGLI | Varies by age | Lowered rates | 2%–17% (avg. 11%) |
These savings offer real monthly relief for thousands of military families while preserving vital financial protection.
Easy Access to Information and Account Tools
For those seeking more details or wanting to check their insurance information:
- Visit the VA’s official website: www.va.gov/life-insurance
- Access SOES via milConnect to manage SGLI or FSGLI policies
- Veterans with VGLI can view their account or call the VA at 1-800-698-2411 for assistance
The VA recommends regularly updating beneficiary details and contact information to avoid administrative issues down the line.
Why These Changes Matter for Military Families
The VA’s decision to reduce premiums is part of a broader initiative to enhance financial security for Veterans and active-duty personnel. With inflation and housing costs rising, even small monthly savings can make a meaningful difference in household budgets.
It also reflects a shift in how the VA approaches benefits modernization—focusing not just on access but also on affordability and long-term sustainability.
Frequently Asked Questions (FAQs)
1. Do I need to take any action to receive the lower premiums?
No. The new rates will be applied automatically for those enrolled in SGLI, FSGLI, or VGLI. However, individuals paying manually or through bank drafts should review their billing setup.
2. When do the new premium rates go into effect?
The reduced premiums go into effect on July 1, 2025, across all three programs.
3. Will coverage amounts change with the lower rates?
No. The amount of coverage remains exactly the same. The change only affects how much you pay monthly.
4. How do I update or check my FSGLI or SGLI elections?
You can manage your coverage via the SOES portal through milConnect. Veterans with VGLI should log into their VA life insurance account or contact the support line.
5. Are the children’s FSGLI premiums changing too?
No. Children’s coverage stays at \$10,000 per child, and it remains free of charge.