Taking care of your family is always priority number one. But sometimes, military life puts a strain on the budget, making you look at every line item, including life insurance. You’ll be glad to know some major relief is on the way with new VA life insurance discounts.
Starting in mid-2025, these changes will put real money back into your pocket every month. If you’re an active duty service member, a military spouse, or a veteran with VA life insurance, you’ll benefit. You’ll learn exactly how these VA life insurance discounts work for you.
Table of Contents:
- Big News for Your Wallet: Life Insurance Premiums Are Dropping
- What This Means for Active Duty, Guard, and Reserve Members
- Exploring the New VA Life Insurance Discounts for Veterans
- Why Does This Price Drop Matter So Much?
- Frequently Asked Questions About These Changes
- Keeping Your Protection Up to Date
- Conclusion
Big News for Your Wallet: Life Insurance Premiums Are Dropping
You work hard for your money, so it’s always good news when a necessary expense goes down. The Department of Veterans Affairs has announced that life insurance premiums will be reduced across several key programs. The decision, praised by the VA Secretary, reflects the strong financial health of the insurance funds managed by Veterans Affairs.
This change officially begins starting July 1, 2025. It is a direct effort to make financial protection more affordable for the entire military community. The premiums discounted reflect a commitment from the VA to pass savings directly to insured veterans and servicemembers.
This is a helping hand that acknowledges your service and sacrifice. The new, lower premium rates are a permanent adjustment, not a temporary sale. This means you will see sustained savings for years to come.
What This Means for Active Duty, Guard, and Reserve Members
If you’re currently serving, these changes will automatically affect your bottom line. You will not have to fill out any VA form or make any phone calls. The savings will just show up in your pay statements.
The Veterans Benefits Administration works to make accessing your benefits as simple as possible. These discounted premium rates are another example of that commitment. It’s one less thing for you to worry about while you focus on your mission.
Understanding Servicemembers’ Group Life Insurance (SGLI) Discounts
Servicemembers’ Group Life Insurance (SGLI) is the primary group life insurance program available to most service members. It gives you low-cost group term life insurance, providing peace of mind while you serve. This valuable program is getting even more affordable.
The premium rate is falling from 6 cents to 5 cents per $1,000 of coverage. This might not sound like a lot at first, but it adds up significantly over time. Let’s look at an example to see the real-world impact.
If you have the maximum SGLI coverage of $500,000, your monthly premium will drop to just $25. That cost also includes $1 for Traumatic Injury Protection (TSGLI), a valuable protection in itself that offers financial support after a qualifying traumatic injury. For more about SGLI payment rates and coverage, you can find official details directly from the VA.
Are you eligible for this? If you’re on active duty, or a member of the National Guard or Reserves, you’re likely already enrolled in SGLI. The premium discount is automatic because premiums are taken directly from your service pay.
Don’t Forget Your Family: FSGLI Spousal Coverage Gets Cheaper Too
Your family’s protection is just as important. Family Servicemembers’ Group Life Insurance, or FSGLI, extends coverage to your spouse and dependent children. Your dependent children are covered at no cost, which is a fantastic benefit for growing families.
Spousal coverage under FSGLI is also getting a price cut. The discount amount will vary based on your spouse’s age, but it will range from an 11% to a 22% reduction. The average discount is about 13% across the board, providing substantial savings.
Like with SGLI, you don’t need to take any action to get this discount. The new, lower rates will take effect automatically on July 1, 2025. To see your current elections, you can visit the SGLI Online Enrollment System (SOES) through the milConnect portal.
Exploring the New VA Life Insurance Discounts for Veterans
The good news does not stop when you hang up your uniform. Many veterans choose to continue their group life insurance coverage through the Veterans’ Group Life Insurance (VGLI) program. Veterans’ Group Life Insurance is a great way to maintain financial protection as you go through transition programs into civilian life.
Starting July 1, 2025, every veteran insured under VGLI will see their monthly premiums go down. This isn’t a temporary sale or a special promotion. This is a permanent rate reduction for all VGLI policyholders who are part of the Veterans’ Group.
The discounts will range from 2% to 17%, with the average reduction being a very helpful 11%. This applies to all age brackets, so both new and long-time VGLI members will benefit. The Office of Servicemembers’ Group Life Insurance (OSGLI) will notify you about your specific new premium.
You can expect to hear from them through direct mail, email, or a notice on your premium bill. For most, this change is automatic. But if you pay your bill manually through your bank’s bill pay service, you may need to update the payment amount to reflect the discount.
This rate reduction for Affairs life insurance is part of a larger effort to support veterans. It recognizes the ongoing needs of those who have served. Veterans Affairs life insurance remains a cornerstone of financial security post-service.
| Insurance Program | Who Is Covered? | Average Discount | Action Needed? |
|---|---|---|---|
| Servicemembers’ Group Life (SGLI) | Active Duty, Guard, Reserve | 17% (from $0.06 to $0.05 per $1k) | No |
| Family SGLI (FSGLI) | Military Spouses | ~13% (varies by age) | No |
| Veterans’ Group Life (VGLI) | Veterans | ~11% (varies by age) | No (unless using manual bill pay) |
Why Does This Price Drop Matter So Much?
Lower premiums are more than just numbers on a page. It means more financial breathing room for you and your family. That extra money each month could go toward groceries, gas, or saving for the future.
Life insurance is the promise you make to your family that they will be looked after, no matter what. It can cover final expenses, pay off a mortgage, or fund a child’s college education. This income replacement allows your loved ones to maintain their quality of life during a difficult time.
When this essential protection becomes more affordable, it allows more military families and veterans to keep it. This reinforces the VA’s commitment to your long-term financial security and supports the economic development of veteran households. This is particularly helpful for women veterans and minority veterans, who can face distinct financial challenges.
This initiative is part of the VA’s broad mission, which includes providing critical VA resources to all who served. It even helps create a stronger financial safety net that can aid in preventing crises, including situations that might lead to hardship for homeless veterans or Native American veterans. Every VA benefit is a piece of a larger support system.
Frequently Asked Questions About These Changes
It’s normal to have questions when financial changes like these are announced. Let’s clear up some common points of confusion. Getting the right information helps you make the best choices for your family’s future.
Do I have to apply for these new discounts?
No, you do not. If you are currently covered under SGLI, FSGLI, or VGLI, the discount will be applied to your account automatically. You don’t need to fill out any paperwork or call anyone to get the lower rate.
How can I check my current coverage amounts?
For active duty members with SGLI and FSGLI, the best place to look is the SOES platform on the milConnect website. Veterans with VGLI can check their policy documents or log into their account through the Prudential portal that administers the plan. Your premium bill will also show your coverage amount.
I’m a veteran but couldn’t get VGLI before. Can I get it now?
This is a really important question that many eligible veterans have. VGLI generally has a strict enrollment period. You typically need to apply within one year and 120 days of leaving the military, so there is not a long one year waiting period.
If you are still within that window, you can apply now and will benefit from these lower rates if approved. If that deadline has passed, you unfortunately may not be eligible for VGLI. However, the Department of Veterans Affairs offers other life insurance programs, like the new Veterans Affairs Life Insurance (VALife) program, which has different eligibility criteria and may be an option for you.
What is Traumatic Injury Protection (TSGLI) in more detail?
Traumatic Injury Protection provides short-term financial assistance to servicemembers who sustain a severe traumatic injury. The benefit is not related to the death benefit of SGLI but is included with your SGLI coverage for a flat $1 fee per month. This injury protection is designed to help you and your family with the financial burdens associated with recovering from a serious injury.
Are there other VA benefits I should know about?
Absolutely. The VA offers a wide array of benefits beyond VA life insurance programs. These include robust education programs like the Montgomery GI Bill, flight training, and accelerated payments for certain courses. For those interested in technology, Vet Tec offers training for high-demand careers.
The VA also provides dependent assistance, entrepreneurship training, and options like correspondence training or co-op training. You can find information about these benefits and a school locator tool on the official VA website. These programs are managed by the Veterans Benefits Administration to help you succeed after service.
What if my financial situation has changed?
Life changes, and so do your financial needs. These discounts might make it easier to afford the maximum coverage you’re eligible for. If you previously chose a lower SGLI or VGLI amount, now might be a good time to look into increasing it, if you are eligible to do so.
Keeping Your Protection Up to Date
A life insurance policy isn’t something you can set and forget. Major life events should always prompt a quick review of your coverage. These discounts make it a perfect time to do a quick financial checkup.
Have you gotten married or divorced recently? Did you welcome a new child into your family? Have you bought a new home with a larger mortgage? All of these are reasons to look at your life insurance.
Perhaps the most critical piece to check is your beneficiary information. You must make sure the people you want to receive the benefit are correctly listed on your policy. An out-of-date beneficiary can cause serious heartache and legal issues for your loved ones down the road, so take time to benefits manage this important detail.
You can usually update your SGLI beneficiaries through the SOES on milConnect. For VGLI, you can make changes through your online account or by submitting the correct VA form. You can also follow the VA on social media for updates and reminders.
Conclusion
This news is a clear win for service members, their families, and veterans. Lower monthly premiums make vital financial protection more accessible and sustainable for the long haul. It helps you keep the promises you’ve made to the people who depend on you.
This premium discount covers the full spectrum of military service, from active duty Servicemembers’ Group Life to Veterans’ Group Life. The lower rates for group life insurance mean your hard-earned money goes further. Remember to look for updates from the VA via direct mail or online channels.
Take this opportunity to review your SGLI, FSGLI, or VGLI coverage. Confirm that your beneficiary information is accurate and that your coverage amount still meets your family’s needs. The upcoming VA life insurance discounts make securing your family’s future a little bit easier.
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