WASHINGTON, D.C.- U.S. Senator Akaka (D-HI), Chairman of the Veterans Affairs Committee, introduced legislation yesterday that would increase the amount of supplemental life insurance available for totally disabled veterans. The Disabled Veterans Insurance Improvement Act of 2007 would increase the coverage available by $20,000, making a total of $50,000 of life insurance available to totally disabled veterans.
"Many totally disabled veterans find it difficult to get life insurance on the commercial market. This bill would help these American heroes by providing them, and their families, with a reasonable security blanket for the future," Akaka said. "The $30,000 in coverage currently available for totally disabled veterans falls well short of the death benefits available to servicemembers and veterans enrolled in the Servicemembers' Group Life Insurance and Veterans' Group Life Insurance programs."
Service-Disabled Veterans' Insurance (S-DVI) was established during the Korean War to provide life insurance to veterans with service-connected disabilities through a $10,000 benefit (totally disabled veterans are eligible for waiver of premiums on this benefit). This amount has never been increased. In 1992, supplemental coverage worth $20,000 was offered to the veterans who qualify for S-DVI (premiums must be paid for this coverage), making the maximum possible coverage for totally disabled veterans $30,000. The Disabled Veterans Insurance Improvement Act of 2007 will allow disabled veterans to purchase an additional $20,000 in coverage, bringing their total possible coverage to $50,000: $10,000 (original) + $20,000 (1992 supplemental) + $20,000 (2007 supplemental) = $50,000 available to totally disabled veterans.
February 16, 2007