Senators from the Republican Party have proposed increasing life insurance for servicemembers. As part of the Supporting Families of the Fallen Act, Senators Tommy Tuberville, Kevin Cramer and Rick Scott introduced legislation to increase Veterans’ Group Life Insurance (VGLI) and the Department of Veterans’ Affairs Servicemembers’ Group Life Insurance (SGLI). They proposed to increase the insurance coverage amount to $500,000 from $400,000.
Since 2005, the SGLI and VGLI coverage amounts have not been updated.
In times of stress and danger, our military families support our warfighters, Tuberville said. When a servicemember makes the ultimate sacrifice, their families deserve to be taken care of. Through this legislation, one can ease their financial worries, and hopefully, alleviate some of the stress of grieving.
Despite rising inflation in the United States, VA life insurance policyholders have been limited to the same amount to protect themselves and their families. The bill authorizes a significant increase in that maximum amount so veterans' families can better provide for their futures.
The senator from Florida noted his family's experience in military service and encouraged his fellow senators to support the bill.
Military members are automatically enrolled under SGLI as they are active military members. After retirement, you have three options: either converting to private life insurance, registering in VGLI or buying private life insurance.
The coverage from the SGLI isn’t free, but it is very affordable. The current basic premium rate is 6 cents per $1,000 of coverage, according to the VA website. The premium is automatically withdrawn from the service member’s base pay.
In addition to active-duty troops, the following are also eligible for the SGLI:
-A commissioned member of the National Oceanic and Atmospheric Administration or the Public Health Service
-A cadet or midshipman of the U.S. military academies
-A member, cadet or midshipman of the Reserve Officers Training Corps (ROTC) engaged in authorized training and practice cruises
-A member of the Ready Reserve or National Guard who is assigned to a unit and is scheduled to perform at least 12 periods of inactive training per year
-A volunteer in an Individual Ready Reserve mobilization category