Fairness for Servicemembers and their Families Act of 2025

The reviews will show whether the current $500,000 maximum coverage under two federal insurance programs has kept pace with inflation and may guide future increases.

What the law does ​

• Requires the Secretary of Veterans Affairs to conduct the first review by January 1, 2026, and repeat it every five years.
• Compares current maximum coverage with a benchmark based on the average five-year change in the Consumer Price Index for all urban consumers.
• Requires review results to be reported to the House and Senate Veterans’ Affairs Committees.
• Allows the findings to guide future increases using the programs’ existing coverage increments.

Who it affects ​

• Servicemembers covered by Servicemembers’ Group Life Insurance.
• Veterans covered by Veterans’ Group Life Insurance.
• Families and beneficiaries who rely on those policies.

Breakdown ​

Fairness for Servicemembers and their Families Act of 2025 ​

This law requires the Secretary of Veterans Affairs to review the maximum automatic life insurance coverage available under the Servicemembers’ Group Life Insurance and Veterans’ Group Life Insurance programs. Beginning January 1, 2026, the review must occur every five years and compare the current coverage amount with an inflation-based benchmark.

Key takeaways

• The first review is due January 1, 2026, with additional reviews required every five years.
• The inflation-based benchmark is calculated by multiplying $500,000 by the average percentage change in the Consumer Price Index over the preceding five fiscal years.
• The Consumer Price Index used is the index for all urban consumers published by the Bureau of Labor Statistics.
• The Secretary must report each review’s results to the House and Senate Veterans’ Affairs Committees.
• The review results may guide future coverage increases within the programs’ existing administrative increment structure.