VA Announces Life Insurance Premium Discounts for Millions

Department of Veterans AffairsImage via Department of Veterans Affairs

WASHINGTON, D.C. — The Department of Veterans Affairs (VA) has announced premium discounts for over 3 million veterans, service members, and their families enrolled in its life insurance programs. The reduced rates, set to take effect in spring 2025, aim to provide financial relief while ensuring greater security for beneficiaries.

The changes apply to Veterans’ Group Life Insurance (VGLI), Servicemembers’ Group Life Insurance (SGLI), and Family Servicemembers’ Group Life Insurance (FSGLI), covering a wide range of policyholders. For veterans under VGLI, approximately 450,000 policyholders will see premium reductions between 2% and 17%, depending on age, with an average discount of 11%.

Active-duty service members, Reservists, and National Guard members with SGLI will benefit from a lower cost of $0.05 per $1,000 of coverage, down from $0.06. This adjustment translates to a monthly reduction in the maximum $500,000 coverage premium, dropping from $30 to $25. With the additional $1 charge for SGLI Traumatic Injury Protection (TSGLI), most service members will see a total deduction of $26 from their monthly pay.

Additionally, around 870,000 spouses insured under FSGLI will experience premium discounts between 11% and 22%, with an average reduction of 13%. These adjustments are based on the age of the insured spouse.

With these changes, VA now provides $1.5 trillion in life insurance coverage to 5.6 million individuals, including veterans, service members, and their families—the largest coverage in the agency’s history.

“These premium discounts will make insurance even more affordable for Veterans, service members, and their spouses,” said Josh Jacobs, VA Under Secretary for Benefits. “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.”

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All eligible individuals enrolled in these programs will automatically receive the discounted rates, requiring no further action on their part. This initiative exemplifies the VA’s efforts to support the financial security of those who serve and their loved ones.

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