Description:
S. 2794 would increase the maximum amount of Servicemembers Group Life Insurance (SGLI) that a service member may carry from $400,000 to $500,000. The bill would similarly increase the maximum coverage amount available to veterans through the Veterans’ Group Life Insurance (VGLI) program. The Department of Veterans Affairs (VA), the administrator of both programs, would be required to confirm that the programs remain actuarially sound after the increases to the maximum coverage amounts and premiums. SGLI and VGLI are funded through premiums paid by service members and veterans. Balances in the federal account for the program earn interest but premiums have been sufficient to pay all benefit claims. Service members may elect SGLI coverage in increments of $50,000. Current monthly premiums for SGLI are set at $0.06 per $1,000 of coverage. Service members also pay $1 per month for additional traumatic injury insurance. Thus, service members electing the maximum $400,000 under current law will pay $300 per year in SGLI premiums. Increasing the coverage limit to $500,000 would increase maximum annual premiums for service members to $372.
