ADMINISTRATIVE MESSAGE ROUTINE R 200005Z OCT 01 ZYB MIN PSN 467563J31 FM CNO WASHINGTON DC//N1// TO NAVADMIN UNCLAS //N01700// NAVADMIN 281/01 MSGID/GENADMIN/N1// SUBJ/SERVICEMEMBERS GROUP LIFE INSURANCE (SGLI) FAMILY COVERAGE// REF/A/DOC/PUBLIC LAW 107-14/05JUN2001// REF/B/DOC/BUPERINST 1750,10A CH 2/29JUL1999// REF/C/MSG/DFAS CLEVELAND OH/021700ZOCT2001// REF/D/MSG/COMNAVPERSCOM MILLINGTON TN/122131ZOCT2001// REF/E/MSG/NAVRESFOR NEW ORLEANS/121100ZOCT2001// NARR/REF A IS THE VETERANS SURVIVOR BENEFITS IMPROVEMENT ACT OF 2001, PUBLIC LAW 107-14, 5 JUN 01. REF B IS IDENTIFICATION CARDS FOR MEMBERS OF THE UNIFORMED SERVICES, THEIR FAMILY MEMBERS, AND OTHER ELIGIBLE PERSONNEL. REF C IS DFAS-CL-PMMB NEW FAMILY SERVICEMEMBERS' GROUP LIFE INSURANCE (SGLI) PROGRAM MILITARY PAY ADVISORY 105/01. REF D IS PERS-3 PAY INFORMATION BULLETIN 01-05. REF E IS ALNAVRESFOR 027/01, FAMILY SERVICEMEMBERS GROUP LIFE INSURANCE (FAMILY SGLI).// RMKS/1. THIS NAVADMIN INTRODUCES A NEW PROGRAM ESTABLISHED BY REF A THAT EXTENDS TERM LIFE INSURANCE COVERAGE TO SPOUSES AND CHILDREN OF UNIFORMED SERVICE MEMBERS AT A REASONABLE COST. CALLED THE SERVICE MEMBER'S GROUP LIFE INSURANCE (SGLI) FAMILY COVERAGE PROGRAM, THIS NEW MILITARY BENEFIT PROVIDES A WAY FOR MEMBERS TO INSURE THEIR LOVED ONES AND THEREBY ADD TO THE OVERALL FINANCIAL HEALTH OF THEIR FAMILIES WHILE PROVIDING ADDED PEACE OF MIND TO MEMBERS WHILE THEY ARE DEPLOYED. MAXIMUM COVERAGE WILL BE $100,000 FOR A SPOUSE (PREMIUMS WILL DEPEND ON THE AMOUNT OF COVERAGE SELECTED AND THE AGE OF THE SPOUSE). EACH DEPENDENT CHILD WILL AUTOMATICALLY BE COVERED AT NO COST TO THE MEMBER IN THE AMOUNT OF $10,000. PROGRAM IMPLEMENTATION IS EFFECTIVE AS OF 1 NOV 01. MAXIMUM SPOUSAL COVERAGE IS AUTOMATIC AS OF 1 NOV; HOWEVER, TO GIVE OUR MEMBERS AND THEIR FAMILIES TIME TO EXAMINE THEIR CURRENT PERSONAL FINANCIAL NEEDS AND DETERMINE HOW MUCH SPOUSAL COVERAGE UNDER THIS PROGRAM IS DESIRED TO MEET THOSE NEEDS, CERTAIN ELECTIONS MAY BE MADE BETWEEN NOW AND 30 NOV 01. DURING THIS PERIOD, MEMBERS MAY ELECT TO DECLINE TO PARTICIPATE IN THE SPOUSAL COVERAGE, OR TO GO AHEAD AND PARTICIPATE, BUT AT A LOWER LEVEL OF COVERAGE (IN INCREMENTS OF $10,000). IT IS IMPORTANT TO NOTE THAT DUE TO CURRENT IMPLEMENTING PROCEDURES REQUIRED BY LAW, ALL MEMBERS CURRENTLY ENROLLED IN SGLI WILL, UNLESS THEIR ELECTION TO THE CONTRARY IS RECEIVED BY DFAS PRIOR TO 26 OCT (DUE TO PROCESSING REQUIREMENTS), BE AUTOMATICALLY ASSUMED TO DESIRE FULL SPOUSAL COVERAGE (OR COVERAGE EQUAL TO THEIR OWN SGLI COVERAGE IF LESS THAN THE CURRENT MAXIMUM) WITH ONE HALF OF THE APPLICABLE PREMIUMS AUTOMATICALLY DEDUCTED FROM THE MEMBER'S ACCOUNT STARTING WITH THE 15 NOV PAYDAY. IN THOSE CASES WHERE MEMBERS ELECT DURING THE PERIOD BETWEEN NOW AND 30 NOV NOT TO PARTICIPATE OR TO DO SO AT LESS THAN THE FULL SPOUSAL COVERAGE, DFAS WILL CREDIT THE RESPECTIVE MEMBER ACCOUNTS FOR ANY EXCESS PREMIUMS DEDUCTED. BOTTOM LINE: IF AN INDIVIDUAL OR UNIT DOESN'T SUBMIT INDIVIDUAL DECLINATIONS OR CHANGES UNTIL AFTER 26 OCT YOU WILL STILL GET CREDIT FOR ANY EXCESS FUNDS DEDUCTED IF YOUR INPUT IS RECEIVED BY 30 NOV. SERVICE MEMBERS MUST BE ENROLLED IN SGLI TO BE ELIGIBLE FOR FAMILY MEMBER COVERAGE. FAMILY MEMBERS OF UNINSURED SERVICE MEMBERS WILL NOT BE COVERED. SPECIFIC DETAILS OF THE PROGRAM FOLLOW. 2. SPOUSAL COVERAGE: SPOUSES WILL BE AUTOMATICALLY COVERED FOR $100,000 (THE MAXIMUM AMOUNT OF COVERAGE AVAILABLE) OR THE AMOUNT OF THE SERVICE MEMBER'S SGLI, WHICHEVER IS LESS. COVERAGE FOR A SPOUSE CAN NOT EXCEED THE AMOUNT OF INSURANCE COVERAGE OF THE SERVICE MEMBER. A SERVICE MEMBER MAY ELECT TO INSURE THEIR SPOUSE FOR AMOUNTS LESS THAN $100,000 IN INCREMENTS OF $10,000, OR DECLINE COVERAGE COMPLETELY. TO DECREASE OR DECLINE SPOUSAL COVERAGE, A SERVICE MEMBER MUST ELECT IN WRITING NOT, REPEAT NOT, TO INSURE THE SPOUSE BY COMPLETING SGLV 8286A. ELECTION FORMS FOR SPOUSAL COVERAGE ARE AVAILABLE AT WWW.INSURANCE.VA.GOV. SPOUSAL COVERAGE IS ALSO AVAILABLE TO SERVICE MEMBERS WHO ARE MARRIED TO ANOTHER SERVICE MEMBER, HOWEVER, BOTH MEMBERS MUST HAVE THEIR SPOUSE ENTERED IN RAPIDS/DEERS AS A DEPENDENT (WITH NO BENEFITS). SPOUSE COVERAGE FOR MEMBER MARRIED TO MEMBER IS AVAILABLE UP TO $100,000, IN INCREMENTS OF $10,000. 3. HEALTH CERTIFICATIONS ARE NOT REQUIRED FOR THE 1 NOV 01 INITIAL OFFERING OF SGLI SPOUSE COVERAGE. THIS IS PARTICULARLY IMPORTANT FOR THOSE SPOUSES WHO MIGHT NOT BE INSURABLE. HOWEVER, IF A SERVICE MEMBER DECLINES OR ELECTS LESS THAN THE MAXIMUM COVERAGE, AND AT A LATER DATE DECIDES TO OBTAIN OR INCREASE COVERAGE, BOTH SGLV 8285A AND 8286A MUST BE COMPLETED. THE SPOUSE WILL BE REQUIRED TO COMPLETE A HEALTH CERTIFICATION WHICH REQUIRES DISCLOSURE OF MEDICAL INFORMATION. OFFICE OF SERVICE MEMBERS GROUP LIFE INSURANCE (OSGLI) RESERVES THE RIGHT TO DISQUALIFY AN APPLICANT BASED UPON PRE-EXISTING MEDICAL CONDITIONS. A FINAL DETERMINATION OF ELIGIBILITY WILL BE FORWARDED TO THE MEMBER/APPLICANT BY OSGLI. MEDICAL CERTIFICATION FOR CHILDREN IS NOT REQUIRED. 4. SPOUSE PREMIUMS. PREMIUMS ARE BASED UPON THE AGE AND AMOUNT OF THE COVERAGE OF THE SPOUSE. PREMIUMS WILL BE DEDUCTED BEGINNING 1 NOV 01 (WHICH WILL BE REFLECTED IN THE 15 NOV 01 PAYDAY) BASED UPON THE FOLLOWING RATES PER $10,000/$100,000: SPOUSE'S AGE MONTHLY RATE MONTHLY COST (PER $10,000) (PER $100,000) UNDER 35 $.90 $9.00 35-44 $1.30 $13.00 45-49 $2.00 $20.00 50-54 $3.20 $32.00 55 & OLDER $5.00 $55.00 COVERAGE FOR A CHILD(REN) IS FREE. PREMIUMS FOR SPOUSAL COVERAGE WILL CONTINUE TO BE DEDUCTED UNTIL THE SERVICE MEMBER: (1) SEPARATES FROM SERVICE; (2) TERMINATES SGLI COVERAGE; (3) TERMINATES SPOUSAL COVERAGE; (4) DIES; OR (5) DIVORCES. REGARDLESS OF THE REASON FOR TERMINATION, PAID-UP COVERAGE FOR THE SPOUSE WILL CONTINUE FOR AN ADDITIONAL 120 DAYS FOLLOWING THE ACTION. IF A SERVICE MEMBER MARRIES AFTER 1 NOV 01, COVERAGE WILL AUTOMATICALLY BEGIN ON THE DATE OF THE MARRIAGE AND PREMIUM DEDUCTIONS TAKEN FROM THE PAY. 5. A SERVICE MEMBER'S SPOUSE MAY ELECT TO CONVERT HIS/HER SGLI TO A COMMERCIAL POLICY WITH A PARTICIPATING COMPANY DURING THE 120 DAY PAID-UP COVERAGE PERIOD FOLLOWING THE SERVICE MEMBER'S (1) SEPARATION FROM THE SERVICE; (2) TERMINATION OF COVERAGE; (3) TERMINATION OF SPOUSAL COVERAGE; (4) DEATH; OR (5) DIVORCE. OSGLI WILL PROVIDE A LIST OF PARTICIPATING COMPANIES UPON REQUEST. 6. CHILD(REN) COVERAGE: COVERAGE FOR CHILDREN WILL BE IN THE AMOUNT OF $10,000 PER CHILD AND IS FREE. A SERVICE MEMBER CANNOT DECLINE OR REDUCE COVERAGE FOR A CHILD(REN). A CHILD MAY NOT BE INSURED BY THE COVERAGE OF MORE THAN ONE SERVICE MEMBER. COVERAGE FOR CHILDREN BORN AFTER 1 NOVEMBER 2001 BEGINS ON THE DATE OF BIRTH. IF A SERVICE MEMBER ADOPTS A CHILD, COVERAGE BEGINS ON THE DATE THE CHILD BECOMES A DEPENDENT FAMILY MEMBER. COVERAGE FOR CHILDREN WILL END 120 DAYS AFTER A SERVICE MEMBER: (1) SEPARATES FROM SERVICE; (2) TERMINATES COVERAGE; (3) DIES; OR (4) THE CHILD IS NO LONGER A DEPENDENT FAMILY MEMBER. COVERAGE FOR CHILDREN MAY CONTINUE UNTIL THE CHILD REACHES TWENTY-THREE YEARS OF AGE AS DEFINED BY REF (B). 7. UPON THE DEATH OF A SPOUSE AND/OR CHILD, INSURANCE PROCEEDS WILL BE PAID TO THE SERVICE MEMBER. A CERTIFIED DEATH CERTIFICATE MUST BE SUBMITTED TO PERS-62D TO INITIATE THE CLAIMS PROCESS. 8. ADDITIONAL INFORMATION REGARDING FAMILY COVERAGE CAN BE OBTAINED AT WWW.INSURANCE.VA.GOV. 9. REF C PROVIDES MILITARY PAY ADVISORY CONCERNING FAMILY SGLI. REF D IS PAY AND PERSONNEL INFORMATION BULLETIN DETAILING GUIDELINES FOR PROCESSING DECLINATIONS OR REDUCTIONS OF COVERAGE ON THE WEB BASED APPLICATION. PERSONNEL OFFICES HAVE BEEN PROVIDED ACCOUNTS AND PASSWORDS FOR THE REQUIRED ACCESS TO THE WEB BASED APPLICATION USED TO PROCESS DECLINATIONS/REDUCTIONS OF COVERAGE. PERSONNEL OFFICES STILL REQUIRING ACCOUNTS AND PASSWORDS SHOULD CONTACT THE NPC REPRESENTATIVE AT (C) 901-874-4254/4293; EMAIL TO NAVYCOMMCELL@PERSNET.NAVY.MIL; FAX: (C) 901-874-2611/(DSN) 882-2611. GUIDANCE FOR RESERVE COMMANDS IS PROVIDED BY REF E. 10. SHIPS/UNITS WITHOUT WEB ACCESS PRIOR TO 1 NOV 01 MAY PROCESS DECREASES OR DECLINATIONS OF SPOUSAL COVERAGE BY NAVAL MESSAGE. ORIGINATOR MUST VALIDATE THE INFORMATION BASED ON A SIGNED ELECTION FORM (SGLV 8286A). THE MESSAGE MUST PROVIDE THE FOLLOWING INFORMATION FOR EACH MEMBER: LAST NAME, FIRST NAME, RANK/RATE, SOCIAL SECURITY NUMBER, DATE OF BIRTH, DECLINE/MODIFY, DOLLAR AMOUNT OF COVERAGE DESIRED (IN TEN THOUSAND DOLLAR INCREMENT). THE MESSAGE MAY CONTAIN MULTIPLE DECLINATIONS OR DECREASES. MESSAGES ARE TO BE SENT TO COMNAVPERSCOM MILLINGTON TN/PERS-621/. THE PERS-62 STAFF WILL CONSIDER THIS INFORMATION VALIDATED. 11. CO'S AND OIC'S SHOULD PUBLICIZE BY BEST MEANS, INCLUDING ALL HANDS EMAIL, QUARTERS, 1MC, POD, ETC. "LIFE INSURANCE COVERING SPOUSES AND CHILDREN WILL BEGIN 1 NOV 01. SERVICE MEMBERS WHO DO NOT WANT THE BENEFIT MUST DISENROLL FROM THE PROGRAM. AS WITH MOST LIFE INSURANCE, THE RATES FOR YOUNGER PEOPLE ARE MUCH LOWER ($9 PER MONTH FOR SPOUSES UNDER 35) AND INCREASE WITH AGE ($55 PER MONTH FOR AGE 55 AND UP). CHILDREN ARE COVERED FOR FREE. TO DISENROLL OR DECREASE COVERAGE, COMPLETE FOR SGLI 8286A FROM WWW.INSURANCE.VA.GOV OR VISIT YOUR DISBURSING REPRESENTATIVE. 12. SGLI FAMILY COVERAGE POC IS LCDR BRIAN MILLER, PERS-621R13, AT 1-800-368-3202 OR EMAIL TO NAVYCOMMCELL@PERSNET.NAVY.MIL. 13. RELEASED BY VADM NORB RYAN, JR., N1.// BT