On Thursday, the Department of Veterans Affairs announced that more than 3 million veterans, service members and spouses who get life insurance through the VA will get a discount on premiums in 2025.
The new rates will apply to the Veterans’ Group Life Insurance (VGLI), Servicemembers’ Group Life Insurance (SGLI) and Family Servicemembers’ Group Life Insurance (FSGLI).
This means roughly 450,000 veterans will see their premiums reduced by 2% to 17%. The percentage reduction will be based on the veteran’s age but is expected to average 11%.
The roughly 2 million service members on active duty, reserve and National Guard will see a one-cent drop for every $1,000 of coverage. For example, a service member who elects a $500,000 policy will see their monthly rate drop from $30 to $25. With the SGLI Traumatic Injury Protection coverage (TSGLI) included at $1 per month, service members will see a $26 monthly deduction from their pay.
For the approximate 870,000 spouses covered under the FSGLI, premiums will lower between 11% and 22%. The exact reduction is based on their age but the average is around 13%.
“These premium discounts will make insurance even more affordable for Veterans, service members, and their spouses,” said VA Under Secretary for Benefits Josh Jacobs. “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.”
These new rates will also apply to those who enroll in the future.
The new rates will automatically take effect in spring 2025 and do not require any action from those covered.