In January 2025, the US Department of Veterans Affairs (VA) announced a premium reduction for its Servicemembers’ Group Life Insurance (SGLI), Family Servicemembers’ Group Life Insurance (FSGLI), and Veterans’ Group Life Insurance (VGLI) programs. Here’s a full rundown of the changes, plus some key information you may want to consider when looking at your life insurance options.

The SGLI/FSGLI Premium Reduction, Explained

As of July 1, 2025, the new premium rates will go into effect, automatically updating servicemembers’ records and pay deductions.

If you’re enrolled in SGLI, you can expect:

• A rate decrease from 6 cents per $1,000 of coverage to 5 cents per $1,000 of coverage
• Spouses covered under Family SGLI will see an average of 13% premium drop, depending on their age
• A continuation of certain aspects of the programs, such as the $1 premium for Traumatic Injury Protection SGLI (TSGLI) coverage and automatic $10,000 coverage for dependent children of servicemembers covered by SGLI

New rate example:

A servicemember with the maximum $500,000 SGLI coverage and a current payment of $30 deducted from their monthly military pay, will see a new premium payment of $25 instead — or $26 when TSGLI is included

If you’re enrolled in VGLI, you can expect:

• A premium reduction between 2% and 17%, with the average being an 11% reduction, depending on your age

Close Your Coverage Gaps with Armed Forces Mutual

While SGLI/FSGLI are worthwhile programs, they include some drawbacks that are important to consider. For instance, you will lose your SGLI coverage when your service ends and, although you can transition to VGLI once you’ve separated, it still may not be enough to cover all your family’s needs. Armed Forces Mutual offers affordable coverage options that give you even more financial protection, plus exclusive Member benefits, for life.

Under SGLI, servicemembers can choose coverage options in increments from $50,000 to $500,000 — but it’s a one-size-fits-all solution. Moveover, it’s only yours as long as you’re serving. VGLI’s premium rates are much higher and increase every five years, which will increase your out-of-pocket costs even with these new reductions.

Armed Forces Mutual offers consistent, affordable coverage with the longevity and flexibility you deserve and require. Whether you have just signed a service contract, are actively serving, or you separated long ago, you’ll find Armed Forces Mutual term and whole life coverage options that meet you at every stage of your career and life with prices you can afford, terms you want, and ongoing support you can count on — including options to fully cover spouses, children and grandchildren, not just small policy riders.

The Benefits of Armed Forces Mutual Membership

Your service to the country deserves more than standard coverage. Armed Forces Mutual Membership provides access to valuable military life insights on everything from transition assistance when you’re preparing to leave the military to education resources and support on your journey to financial independence. Additionally, all Members receive complimentary Survivor Assistance Services to support your survivors in accessing the benefits you’ve earned through your service — along with a secure Digital Vault where you can save the essential documents needed to receive them.

Is SGLI Enough?

For many, SGLI is a convenient and cost-effective life insurance coverage option, made even more affordable with the recent premium reductions. But, for many, the coverage limitations of SGLI do not fully protect their entire family. If you’re looking for coverage options to supplement and enhance your standard SGLI coverage or a better-value alternative to VGLI, it’s time to consider other solutions.

We Can Help

Contact an Armed Forces Mutual Membership Coordinator today to discuss how much coverage you really need, and the best policy options for your family, at 877-398-2263.