Guidance to Increase Servicemembers Group Life Insurance (SGLI) Coverage to 400,000 Dollars

1. THE SERVICEMEMBERS GROUP LIFE INSURANCE (SGLI)
MAXIMUM COVERAGE WILL INCREASE TO $400,000 EFFECTIVE SEPTEMBER 1,
2005, AND ALLOWS REDUCED ELECTIONS IN INCREMENTS OF $50,000. ON THE
EFFECTIVE DATE, ALL MEMBERS ELIGIBLE FOR SGLI AT THAT TIME WILL
BECOME INSURED FOR THE MAXIMUM COVERAGE OF $400,000 UNTIL THEY MAKE
A VALID ELECTION ON OR AFTER THE EFFECTIVE DATE TO REDUCE OR DECLINE
COVERAGE. THE NEW SGLV 8286 WILL NOT BE MADE AVAILABLE UNTIL AUGUST
31, 2005. THESE CHANGES WILL NOT AFFECT COVERAGE UNDER FAMILY SGLI
(FSGLI). SUCH COVERAGE AND LIMITATIONS ON SUCH COVERAGE CONTINUE
UNDER PREVIOUSLY EXISTING RULES. LIKEWISE, BEGINNING ON THE
EFFECTIVE DATE, ALL MEMBERS WHO BECOME NEWLY ELIGIBLE FOR SGLI WILL
HAVE $400,000 IN COVERAGE UNTIL THEY MAKE A VALID ELECTION TO REDUCE
OR DECLINE COVERAGE. THE MONTHLY SGLI PREMIUM REMAINS $3.25 PER
$50,000 OF COVERAGE. THEREFORE, $26.00 WILL BECOME THE MONTHLY
PREMIUM FOR FULL COVERAGE BEGINNING IN SEPTEMBER 2005.
2. NO ELECTION BEFORE SEPTEMBER 1, 2005 WILL APPLY WITH RESPECT TO
THE MEMBER'S LEVEL OF COVERAGE ON OR AFTER SEPTEMBER 1, 2005. AS
DESCRIBED ABOVE, ALL SERVICE MEMBERS ELIGIBLE FOR SGLI ON SEPTEMBER
1, 2005, WILL AUTOMATICALLY HAVE $400,000 OF SGLI UNTIL THEY ELECT
OTHERWISE. A NEW SGLV 8286 DOES NOT HAVE TO BE SUBMITTED UNLESS THE
MEMBER WISHES TO DECLINE OR REDUCE THE LEVEL OF COVERAGE FROM
$400,000. ANY NEW SGLI ELECTIONS, IF OTHERWISE VALID, CONTINUE TO
BECOME EFFECTIVE THE FIRST DAY OF THE MONTH AFTER PROPERLY
SUBMITTING THE ELECTION FORM. THUS, ALL MEMBERS WILL BE FULLY
INSURED FOR $400,000 THROUGH OUT THE MONTH OF SEPTEMBER 2005,
REGARDLESS OF ANY ELECTION FILED BEFORE OR DURING SEPTEMBER, 2005. 
IF A MEMBER DIES IN SEPTEMBER AFTER COMPLETING AN ELECTION FOR
REDUCED COVERAGE OR NO COVERAGE, THE MEMBER'S BENEFICIARY(IES) WILL
STILL RECEIVE A $400,000 PAYMENT. THE ELECTION IS NOT VALID UNTIL
THE FIRST OF THE FOLLOWING MONTH.
3. EXISTING BENEFICIARY DESIGNATIONS REMAIN EFFECTIVE IN THE SAME
PROPORTION TO $400,000 AS THE PROPORTION OF TOTAL BENEFITS SUCH
BENEFICIARY WAS DESIGNATED TO RECEIVE UNDER THE LAST VALID SGLV
8286. SUCH BENEFICIARY PROPORTIONAL DESIGNATIONS REMAIN EFFECTIVE
UNTIL A NEW SGLV 8286 (SEPTEMBER 2005 VERSION) IS PROPERLY COMPLETED
ON OR AFTER SEPTEMBER 1, 2005. A MEMBER WHO WISHES TO RETAIN THE
$400,000 OF COVERAGE WITH BENEFICIARY DESIGNATION IN THE SAME
PROPORTION AS BEFORE SEPTEMBER 1, 2005, DOES NOT NEED TO TAKE ANY
ACTION WHATSOEVER. THE $400,000 OF COVERAGE WILL APPLY ALONG WITH
THE REQUISITE PREMIUMS AND BENEFICIARY DESIGATIONS WILL BE RETAINED
IN THE SAME PROPORTION AS APPLICABLE TO THE ELECTION IN EFFECT JUST
BEFORE SEPTEMBER 1, 2005. IF A MARRIED MEMBER DESIGNATES A PRIMARY
BENEFICIARY FOR THEIR SGLI COVERAGE OTHER THAN THEIR CURRENT LAWFUL
SPOUSE, INCLUDING AN INITIAL ELECTION UPON BECOMING ELIGIBLE FOR
COVERAGE, ON OR AFTER SEPTEMBER 1, 2005, THE MEMBER'S SPOUSE WILL BE
INFORMED THAT THE MEMBER HAS MADE SUCH A DESIGNATION. SUCH ADVISORY
SHOULD BE MADE AS QUICKLY AS POSSIBLE (WITHIN 30 DAYS OF THE DATE
SUCH ELECTION IS SUBMITTED BY THE MEMBER), BUT SUCH NOTICE SHALL NOT
INCLUDE THE NAME(S) OF THE ACTUAL DESIGNATED BENEFICIARY(IES). 
NOTICES SHALL BE SENT BY FIRST CLASS POSTAL SERVICE TO THE SPOUSE'S
CURRENT ADDRESS OF OFFICIAL RECORD (DEERS).
4. ALL MEMBERS ELIGIBLE FOR SGLI WILL BE CHARGED THE FULL $26.00
MONTHLY PREMIUM PLUS ANY APPLICABLE FAMILY SGLI PREMIUM UNLESS THEY
FILE A NEW SGLV FORM 8286 ON OR AFTER SEPTEMBER 1, 2005. SHOULD A
MEMBER DESIRE LESS THAN THE AUTOMATIC MAXIMUM COVERAGE, THAT MEMBER
SHOULD COMPLETE A NEW SGLV 8286 (SEPTEMBER 2005 VERSION) INDICATING
THE AMOUNT OF COVERAGE DESIRED (INCLUDING NO COVERAGE IF APPLICABLE)
AND SUBMIT THAT ELECTION AS SOON AS POSSIBLE. IF SUCH A MEMBER
PROPERLY COMPLETES AND SUBMITS THE FORM BEFORE SEPTEMBER 30, 2005,
THE MEMBER WILL NOT BE LIABLE FOR THE SEPTEMBER 2005 PREMIUM
ASSOCIATED WITH THE REDUCED OR DECLINED PORTION OF COVERAGE. THIS
GIVES MEMBERS 30 DAYS TO REDUCE OR DECLINE UNWANTED COVERAGE WITHOUT
CHARGE. UNITS SHOULD PROCESS ELECTIONS AS EXPEDITIOUSLY AS POSSIBLE
TO AVOID THE NECESSITY FOR CORRECTIONS IN FINANCIAL TRANSACTIONS.
5. A MEMBER WHO DOES NOT MAKE AN ELECTION TO REDUCE OR DECLINE
COVERAGE FROM THE $400,000 LEVEL BEFORE OCTOBER 1, 2005, WILL BE
CHARGED FOR THE FULL $400,000 OF COVERAGE FOR SEPTEMBER AS WELL AS
FOR ANY OTHER MONTH IN WHICH THE LEVEL OF COVERAGE REMAINS IN
EFFECT. WHEN A MEMBER PROPERLY COMPLETES AND SUBMITS SGLV FORM 8286
ON OR AFTER OCTOBER 1, 2005, TO REDUCE OR DECLINE COVERAGE, SUCH
REDUCTION IS EFFECTIVE THE FIRST DAY OF THE MONTH AFTER SUCH FORM IS
PROPERLY SUBMITTED. THEREFORE, THE MEMBER REMAINS LIABLE FOR THE
FULL PREMIUM THROUGH THE END OF THE MONTH IN WHICH THE ELECTION WAS
FILED.