A new law will protect VA insurance programs for servicemembers and veterans from inflation, allowing for regular adjustments of the maximum coverage amount and ensuring meaningful peace of mind for those who’ve earned access to these plans.

The president signed the MOAA-backed Fairness for Servicemembers and Their Families Act into law Dec. 12. The bipartisan legislation passed the House by a voice vote in the spring, then cleared the Senate by unanimous consent in November.

“Bipartisan, commonsense improvements to trusted programs like this make a real difference,” said Jen Goodale, MOAA’s director of government relations for veteran and retired affairs. “Protecting the value of these benefits is the core of MOAA advocacy — we thank the lawmakers from both sides of the aisle who made this change possible."

The law requires the VA secretary to report to House and Senate Veterans’ Affairs committees on cost-of-living (COLA) increases and inflation rates every five years in relation to the maximum coverage allowed under the Servicemembers’ Group Life Insurance (SGLI) and Veterans’ Group Life Insurance (VGLI) programs. It links the Consumer Price Index for All Urban Consumers (CPI-U) to the current maximum of $500,000 as a benchmark.

[RELATED: MOAA’s COLA Watch]

“Our servicemembers put their lives on the line for their country, and we must protect the well-being of their families in the event of a tragedy,” said Rep. Marilyn Strickland (D-Wash.), who introduced the House bill, in a press release. “This new law makes it clear that our nation will always stand by our military families.”

Senate supporters included Sen. John Cornyn (R-Texas), who led that chamber’s version of the bill. He said the bill would “help ensure the Veterans Affairs Department can offer competitive life insurance packages that keep pace with the current cost of living.”

SGLI launched in 1965 with a $10,000 coverage maximum. VGLI began nine years later, allowing veterans to convert SGLI to a five-year term policy. It would later become a renewable, premium-based plan.

Maximum coverage levels for both plans have increased over the decades, but not in regular fashion. It rose from $200,000 to $250,000 in 2001 and to $400,000 in 2005, but remained at that level for nearly two decades until a 2023 law boosted the limit to the current $500,000.

[RELATED: MOAAInsurance.com]

By indexing the coverage maximum to inflation figures, the new law will preserve the value of the insurance program against inflationary threats, strengthening a safety net that has been used by millions of servicemembers and veterans throughout the decades.

Learn more about SGLI, VGLI, and other VA life insurance options on the VA website. For more on MOAA’s work to preserve the value of service-earned benefits, visit our Legislative Action Center.