SERVICEMEMBERS TO RECEIVE GREATER INSURANCE COVERAGE

SERVICEMEMBERS TO RECEIVE GREATER INSURANCE COVERAGE

Washington, D.C. Today, the House passed H.R. 3200 unanimously, which will allow for the maximum coverage for Servicemembers’ Group Life Insurance (SGLI) and Veterans’ Group Life Insurance (VGLI) to be permanently increased to $400,000. 

Our freedoms were secured by Americans who wore the uniform and are wearing it today, Chairman Steve Buyer (R-IN) said.  With this increased insurance coverage, we help ensure that our servicemembers and veterans can provide for their families. 

H.R. 3200, the Servicemembers’ Group Life Insurance Enhancement Act of 2005, increases the maximum coverage available to servicemembers and veterans from the current $250,000 ceiling to $400,000.  These increases were enacted earlier this year in the war supplemental appropriations act and expire on September 30, 2005.  H.R. 3200 will make them permanent. 

“I am very pleased the Committee has come together to improve and increase these important life insurance benefits in a timely, fair and bipartisan manner.  Servicemembers, veterans and military families have certainly earned our best efforts,” said Ranking Member, Congressman Lane Evans (D-IL).  

Through this increase in life insurance our servicemembers and their families will gain greater peace of mind, said Subcommittee Chairman on Disability Assistance and Memorial Affairs, Jeff Miller (R-FL).

The bill also boosts the incremental increases in both of these life insurance programs from the current $10,000 to $50,000. 

Affecting only SGLI, the bill also requires the Pentagon to notify the servicemember’s spouse in writing (or the next of kin if the servicemember is unmarried) if the servicemember declines SGLI coverage or chooses an amount less than the maximum.  The military also must notify a spouse should someone other than the spouse or child be designated as the policyholder’s beneficiary.  

The new maximums would go into effect on September 1, 2005.  The coverage of all policies in force, regardless of coverage amount, would immediately be changed to the maximum $400,000. Policyholders would then have the opportunity to decrease coverage if they choose.

Finally, the bill allows a servicemember to decline Traumatic Injury Protection coverage.  A servicemember who declines coverage would still be able to elect coverage later.

More information about hearings, legislation, and other activities of the Committee on Veterans’ Affairs can be found on our award-winning Website: www.veterans.house.gov