RMKS/
1. THE PURPOSE OF THIS MESSAGE IS TO PROVIDE INFORMATION CONCERNING PREMIUM RATE REDUCTIONS FOR THE SERVICEMEMBERS' GROUP LIFE INSURANCE (SGLI) PROGRAM AND THE FAMILY SERVICEMEMBERS' GROUP LIFE INSURANCE (FSGLI) PROGRAM.

2. THE DEPARTMENT OF VETERAN'S AFFAIRS (VA) HAS ANNOUNCED THAT EFFECTIVE JULY 1, 2003 THERE WILL BE A PREMIUM RATE REDUCTION FOR THE SGLI AND THE FSGLI PROGRAM.

3. THE NEW PREMIUM RATE FOR BASIC SGLI WILL BE 6.5 CENTS PER $1000.00 OF COVERAGE PER MONTH INSTEAD OF THE CURRENT 8 CENTS PER $1000.00 OF COVERAGE PER MONTH. MONTHLY PREMIUM RATES FOR SERVICE MEMBERS WITH THE MAXIMUM AMOUNT ($250,000.00) OF BASIC SGLI COVERAGE WILL BE REDUCED FROM $20.00 PER MONTH TO $16.25 PER MONTH.

4. THE COST FOR FSGLI IS BASED ON THE DATE OF BIRTH OF THE SERVICE MEMBER'S SPOUSE. EFFECTIVE JULY 1, 2003, FSGLI PREMIUM RATES WILL BE BASED ON SEVEN AGE GROUPS INSTEAD OF THE CURRENT FIVE AGE GROUPS. WHEN A SERVICE MEMBER'S SPOUSE MOVES TO A NEW AGE BRACKET, THE NEW HIGHER PREMIUM RATE WILL BEGIN THE FIRST DAY OF THE MONTH FOLLOWING THE SPOUSE'S BIRTH MONTH.

5. THE NEW FAMILY SGLI RATES ARE LISTED IN THE TABLE BELOW. AGE BRACKET CURRENT MONTHLY PREMIUM REVISED MONTHLY PREMIUM RATES

RATES FOR $100,000 OF FOR $100,000 OF COVERAGE AS COVERAGE OF JULY 1, 2003

UNDER 35 $ 9.00 $ 6.00
35-39 $13.00 $ 7.50
40-44 $13.00 $10.00
45-49 $20.00 $19.00
50-54 $32.00 $28.00
55-59 $55.00 $42.00
60 & OVER $55.00 $54.00
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