S. 385 — Fairness for Servicemembers and their Families Act of 2025

This section requires the Secretary of Veterans Affairs, beginning January 1, 2026, and every five years thereafter, to review the automatic maximum coverage amount under Servicemembers’ Group Life Insurance (SGLI) and Veterans’ Group Life Insurance (VGLI)—currently $500,000—against an inflation-adjusted benchmark equal to $500,000 multiplied by the average percentage change in the Consumer Price Index for All Urban Consumers over the preceding five fiscal years. (SGLI provides low-cost group term life insurance to active duty servicemembers and their dependents; VGLI allows certain separating servicemembers to convert and continue coverage.) The Secretary must submit the review results to the House and Senate Committees on Veterans' Affairs, which may guide coverage increases within the existing administrative structure.