Senior officials of veterans Affairs Department has announced that older veterans will have to pay higher premiums for Veterans Group Life Insurance from July 1. Officials opined that this change has been brought after the 21 years and the 2.2 percent increase in the premiums will apply to all 70 or older veterans.
It is said that the expected raise is 5 cents per $1,000 of monthly coverage. In nutshell, those veterans who are 70 years and above having coverage of $50,000 of VGLI will pay $2.5 more from onwards. Besides, veterans of 75 years of age will pay $5 more on $50,000 coverage of VGLI.
Actually, VGLI coverage is based on age. This coverage has been divided in age groups. After the raise in the insurance premiums, Veterans of 75 and older- having coverage of $400,000- will pay $1,840 a month in July from $1,800 a month.
It goes without saying that monthly premiums are usually deducted from military retired pay or from VA compensation. Senior officials of veterans Affairs Department said that “unlike other insurance companies VGLI is offering life time insurance policy irrespective of age and health factors”.
But, Bob Latsch denies with what senior officials of veterans Affairs Department claims. He says that “the sudden raise in premiums will be really tough for me to pay however I am thinking to reduce my coverage limit”. He further opines that my wife and I have not saved anything and we were heavily depending on VGLI coverage.
Last but not the least, financial experts urge veterans to compare the premiums rates of private insurance companies with VGLI. It has also been requested that troops should get them covered with insurance policy with immediate effect.