military members e1604924321291 New Year, New Insurance Benefits

New Year, New Insurance Benefits

Disabled veteran insurance changes are just part of a massive bill that was passed by both the House and Senate in December 2020. Some of the changes include:

*A long awaited increase in the pay-out cap for the Service-Disabled Veteran Insurance program; from $10,000- $40,000.The program started in the 1950’s and was created to help veterans get access to benefits when they could not pass a life insurance physical exam.  Up until the passing of this bill, the pay-out amount had never increased or changed, even with inflation and increased costs of insurance and living. This is great news, and should dramatically improve life insurance benefits for service-disabled veterans and better meet their families’ needs.

*A more detailed explanation is now mandatory if a claim is rejected by the Traumatic Injury Protection Servicemembers’ Group Life Insurance program. The same explanation and reasoning must also be used in any following appeals of the claim. This is to help prevent any contradictory reasons for claim denial. This particular provision in the legislation gained momentum largely due to Sgt. 1st Class Cameron Corder. Corder suffered through a 4 year bureaucratic struggle to receive TSGLI payouts from a serious back injury he sustained in 2013 while treating a wounded service member during his deployment as a medic in Afghanistan. He underwent numerous surgeries for this injury, all of which were covered as service-connected. Errors and paperwork mistakes, including specific details of the injury being left out, left him technically ineligible for the injury insurance policy.

*Disabled veterans may begin to see a significant increase in their life insurance coverage in this new year.

These insurance changes are positive and a much-needed increase for disabled veterans. Though the bill passed in Congress in December 2020, the legislation is currently awaiting the President’s signature to officially become law.

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