Rule2025-18828
Servicemembers’ Group Life Insurance and Veterans’ Group Life Insurance-Accelerated Benefit Option Regulation Update
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
September 29, 2025
Effective
October 29, 2025
Issuing agencies
Veterans Affairs Department
Abstract
The Department of Veterans Affairs (VA) amends its regulations governing Servicemembers' Group Life Insurance (SGLI), Family SGLI (FSGLI), and Veterans' Group Life Insurance (VGLI) to allow an alternate applicant to apply for an Accelerated Benefit in certain circumstances. VA also defines key terms and removes contact information and the reproduction of the Accelerated Benefit application form from the text of the regulations.
Full Text
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<title>Federal Register, Volume 90 Issue 186 (Monday, September 29, 2025)</title>
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[Federal Register Volume 90, Number 186 (Monday, September 29, 2025)]
[Rules and Regulations]
[Pages 46475-46477]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-18828]
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DEPARTMENT OF VETERANS AFFAIRS
38 CFR Part 9
[Docket No. VA-2024-VBA-0029]
RIN 2900-AR67
Servicemembers' Group Life Insurance and Veterans' Group Life
Insurance--Accelerated Benefit Option Regulation Update
AGENCY: Department of Veterans Affairs.
ACTION: Final rule.
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SUMMARY: The Department of Veterans Affairs (VA) amends its regulations
governing Servicemembers' Group Life Insurance (SGLI), Family SGLI
(FSGLI), and Veterans' Group Life Insurance (VGLI) to allow an
alternate applicant to apply for an Accelerated Benefit in certain
circumstances. VA also defines key terms and removes contact
information and the reproduction of the Accelerated Benefit application
form from the text of the regulations.
DATES: This rule is effective October 29, 2025.
FOR FURTHER INFORMATION CONTACT: Samantha Yerdon, Management and
Program Analyst, Insurance Service, Veterans Benefits Administration,
(215) 842-2000, ext. 5494.
SUPPLEMENTARY INFORMATION: On December 5, 2024, VA published a proposed
rulemaking in the Federal Register pertaining to alternate applicants
applying for Accelerated Benefits. 89 FR 96627. VA proposed to
liberalize the Accelerated Benefit Option for SGLI, FSGLI, and VGLI
members to afford third parties the opportunity to elect an Accelerated
Benefit Option if a SGLI/VGLI member is terminally ill and medically
incapacitated or an FSGLI spouse is terminally ill and the member is
medically incapacitated. Id. at 96628. Additionally, VA proposed to
remove all addresses and telephone numbers from the text of the
regulations as this information is subject to periodic change, and it
is not practicable to use the rulemaking process each time an address
or telephone number is updated. Id. The proposed rule also defined
terms related to dependent child FSGLI coverage when the children are
age 18-22 to clarify eligibility for insurance payments upon death. Id.
at 96629.
VA provided the public with a 60-day comment period that ended on
February 3, 2025. VA received three comments from the public, and all
three comments supported the proposed rulemaking. Based on the
rationale set forth in the proposed rule, VA adopts the proposed rule
as final with technical edits to 38 CFR 9.14 that correct the
subparagraph designations and maintain reference to the Office of
Management and Budget control number (2900-0618) and authority
citations.
Executive Orders 12866, 13563, and 14192
VA examined the impact of this rulemaking as required by Executive
Orders 12866 (Sept. 30, 1993) and 13563 (Jan. 18, 2011), which direct
agencies to assess all costs and benefits of available regulatory
alternatives and, if regulation is necessary, to select regulatory
approaches that maximize net benefits. The Office of Information and
Regulatory Affairs has determined that this final rule is not a
significant regulatory action under E.O. 12866, as supplemented by
Executive Order 13563. This final rule is a deregulatory action under
Executive Order 14192.
Economic Impact: VA has determined there are no costs or transfers
associated with this proposal because the SGLI, FSGLI, and VGLI
programs are funded by the premiums that Service members and former
members pay for the life insurance coverage. Given that these programs
are designed to be primarily self-supporting, appropriations are not
authorized to be paid to these programs
[[Page 46476]]
except in limited instances where the SGLI program's mortality
experience due to combat deaths exceeds expected mortality in the
program based on civilian death rates. Other than this limited
circumstance, the cost of insurance coverage as well as the costs of
administering the programs are borne by the program out of premiums
paid for coverage. VA designated this as a deregulatory action under
Executive Order 14192 due to there being no increases in incremental
costs or transfers and because the rulemaking also reduces
administrative burden and adjudication inefficiencies. While VA is
unable to quantify savings, there will be increases in efficiency as
this rulemaking simplifies claims processing and reduces costly appeals
without imposing new regulatory requirements.
Regulatory Flexibility Act
The Secretary hereby certifies that this final rule will not have a
significant economic impact on a substantial number of small entities
as they are defined in the Regulatory Flexibility Act (5 U.S.C. 601-
612). The factual basis for this certification is based on an existing
statutory provision for the SGLI program, at 38 U.S.C. 1966, which
limits the primary insurer for this program to large insurance
companies in the United States. The Secretary of Veterans Affairs has
purchased a group life insurance policy from a large private insurer
for purposes of providing coverage to Service members, their spouses
and dependent children, and Veterans. This regulation clarifies
requirements under which certain SGLI program benefits are offered
under the authority of 38 U.S.C. 1968 and 1980 but does not change the
pre-existing statutory requirement that the primary insurer be a large
private insurer. As such, the overall impact of this final rule will be
of no benefit or detriment to small entities. Therefore, pursuant to 5
U.S.C. 605(b), the initial and final regulatory flexibility analysis
requirements of 5 U.S.C. 603 and 604 do not apply.
Unfunded Mandates
This final rule will not result in the expenditure by State, local,
and tribal governments, in the aggregate, or by the private sector, of
$100 million or more (adjusted annually for inflation) in any one year.
Paperwork Reduction Act
Although this final rule contains collection of information under
the provisions of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-
3521), there are no provisions associated with this rulemaking
constituting any new collection of information or any revisions to the
existing collection of information. The collection of information for
38 CFR 9.14 is currently approved by the Office of Management and
Budget (OMB) and has been assigned OMB control number 2900-0618.
Assistance Listing
The Assistance Listing number and title for the program affected by
this document is 64.103, Life Insurance for Veterans.
Congressional Review Act
Pursuant to subtitle E of the Small Business Regulatory Enforcement
Fairness Act of 1996 (known as the Congressional Review Act) (5 U.S.C.
801 et seq.), the Office of Information and Regulatory Affairs
designated this rule as not satisfying the criteria under 5 U.S.C.
804(2).
List of Subjects in 38 CFR Part 9
Life insurance, Military personnel, Veterans.
Signing Authority
Douglas A. Collins, Secretary of Veterans Affairs, approved this
document on September 23, 2025, and authorized the undersigned to sign
and submit the document to the Office of the Federal Register for
publication electronically as an official document of the Department of
Veterans Affairs.
Taylor N. Mattson,
Alternate Federal Register Liaison Officer, Department of Veterans
Affairs.
For the reasons stated in the preamble, VA amends 38 CFR part 9 as
set forth below:
PART 9--SERVICEMEMBERS' GROUP LIFE INSURANCE AND VETERANS' GROUP
LIFE INSURANCE
0
1. The authority citation for part 9 continues to read as follows:
Authority: 38 U.S.C. 501, 1965-1980A, unless otherwise noted.
0
2. Amend Sec. 9.1 by revising paragraph (b) and adding paragraphs (m)
and (n) to read as follows:
Sec. 9.1 Definitions.
* * * * *
(b) The term administrative office means the Office of
Servicemembers' Group Life Insurance.
* * * * *
(m) The term pursuing a course of instruction at an approved
educational institution, as used in 38 U.S.C. 101(4)(A)(iii), means,
for purposes of this part, pursuing a ``program of education,'' as that
term is defined in 38 U.S.C. 3002(3), at an approved ``educational
institution,'' as that term is defined in 38 U.S.C. 3452(c), as an
enrolled student on either a more than half-time basis or on a half-
time basis or less.
(n) The term a stepchild who is a member of a veteran's household,
as used in 38 U.S.C. 101(4)(A), for purposes of this part, means a
stepchild who has been living in the insured's household for at least
one year.
0
3. Revise Sec. 9.14 to read as follows:
Sec. 9.14 Accelerated Benefits.
(a) Accelerated Benefit. An Accelerated Benefit is a payment of a
portion of SGLI or VGLI to a terminally ill member (i.e., an insured
Service member or veteran), or a payment of a portion of Family
Servicemembers' Group Life Insurance to a member on behalf of a
terminally ill covered person, before death.
(b) Eligibility to receive an Accelerated Benefit. A member is
eligible to receive an Accelerated Benefit if the member has a valid
written medical prognosis from a physician of nine months or less to
live, and otherwise complies with the provisions of this section.
(c) Applying for an Accelerated Benefit--SGLI Member or VGLI
Member. (1) A terminally ill member can apply for an Accelerated
Benefit by completing the SGLV 8284 application form. The member's
physician is required to complete part of the form by certifying that
the member is terminally ill (i.e., has a life expectancy of nine
months or less). If the member is covered under Servicemembers' Group
Life Insurance, the member's uniformed service must also complete part
of the form and submit it to the Office of Servicemembers' Group Life
Insurance. If the member is covered under VGLI, the member must submit
the completed application form to the Office of Servicemembers' Group
Life Insurance.
(2) An alternate applicant can apply for an Accelerated Benefit on
behalf of a terminally ill member if the member is medically
incapacitated, as defined in paragraph (e) of this section. The
alternate applicant can apply by completing the SGLV 8284 application
form if all of the following conditions are met:
(i) The member's physician must certify that the member is
terminally ill and medically incapacitated;
(ii) The alternate applicant must have power of attorney,
guardianship, or conservatorship over the member, or be the member's
VA-appointed fiduciary
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under 38 U.S.C. chapters 55 and 61 or military trustee under 37 U.S.C.
602; and
(iii) The alternate applicant must sign the SGLV 8284 application
form; identify that he or she holds the member's power of attorney to
act on the member's behalf or is the member's court-appointed guardian
or conservator, VA-appointed fiduciary, or military trustee; and attach
the form to a true and correct copy of the power of attorney, court
order establishing the guardianship or conservatorship, or
documentation designating the alternate applicant as the member's VA-
appointed fiduciary or military trustee.
(iv) If the member is covered under SGLI, the alternate applicant
must submit the application to the member's uniformed service, who then
must also complete part of the form and submit it to the Office of
Servicemembers' Group Life Insurance. If the member is covered under
VGLI, the alternate applicant must submit the completed application
form to the Office of Servicemembers' Group Life Insurance.
(d) Applying for an Accelerated Benefit--Member's Spouse. (1) If a
member's insured spouse (i.e., member's spouse) is terminally ill
(i.e., has a life expectancy of nine months or less), only the member
can apply for an Accelerated Benefit by completing the SGLV 8284A
application form. The member's spouse's physician is required to
complete part of the form by certifying that the member's spouse is
terminally ill. The member's uniformed service must also complete part
of the form and submit it to the Office of Servicemembers' Group Life
Insurance.
(2) If the member's spouse is terminally ill and the member is
medically incapacitated, an alternate applicant acting on behalf of
such member can apply for the Accelerated Benefit. The alternate
applicant can apply by completing the SGLV 8284A application form if
all of the following conditions are met:
(i) The member's spouse's physician must certify that the member's
spouse is terminally ill;
(ii) The member's physician must certify that the member is
medically incapacitated;
(iii) The alternate applicant must have power of attorney,
guardianship, or conservatorship over the member, or be the member's
VA-appointed fiduciary under 38 U.S.C. chapters 55 and 61 or military
trustee under 37 U.S.C. 602; and
(iv) The alternate applicant must sign the SGLV 8284A application
form; identify that he or she holds the member's power of attorney to
act on the member's behalf or is the member's court-appointed guardian
or conservator, VA-appointed fiduciary, or military trustee; and attach
the form to a true and correct copy of the power of attorney, court
order establishing the guardianship or conservatorship, or
documentation designating the alternate applicant as the member's VA-
appointed fiduciary or military trustee.
(v) The member's uniformed service must also complete part of the
form and submit it to the Office of Servicemembers' Group Life
Insurance.
(e) Medically Incapacitated. For the purposes of paragraphs (c) and
(d) of this section, the term ``medically incapacitated'' means that a
member has been determined by a medical professional to be physically
or mentally impaired by physical disability, mental illness, mental
deficiency, advanced age, chronic use of drugs or alcohol, or other
causes that prevent sufficient understanding or capacity to manage his
or her own affairs competently.
(f) Amount of Accelerated Benefit Request. (1) A member can request
as an Accelerated Benefit an amount up to a maximum of 50% of the face
value of the insurance coverage.
(2) A member's request for an Accelerated Benefit must be $5,000 or
a multiple of $5,000 (for example, $10,000, $15,000).
(g) Accelerated Benefit Decision. The Office of Servicemembers'
Group Life Insurance will review the application and determine whether
a member meets the requirements of this section for receiving an
Accelerated Benefit.
(1) They will approve the application if the requirements of this
section are met.
(2) If the Office of Servicemembers' Group Life Insurance
determines that the application form does not fully and legibly provide
the information requested by the application form, they will contact
the member or their alternate applicant and request that the member or
their alternate applicant submit the missing information to them. They
will not take action on the application until the information is
provided.
(h) Payment of Accelerated Benefit. An Accelerated Benefit will be
paid in a lump sum.
(i) Cancellation of Application for Accelerated Benefit. (1) An
election to receive the Accelerated Benefit is made at the time the
Accelerated Benefit is cashed or deposited. After that time, the
Accelerated Benefit cannot be cancelled. Until that time, a request for
the Accelerated Benefit may be cancelled by informing the Office of
Servicemembers' Group Life Insurance in writing and returning payment,
if issued by check, or stopping payment before deposit in the member's
account, if issued by electronic funds transfer. If a member wants to
change the amount of benefits requested or decides to reapply after
cancelling a request, the member must file another application
requesting either the same or a different amount of benefits.
(2) If a member dies before cashing or depositing an Accelerated
Benefit payment, the payment must be returned to the Office of
Servicemembers' Group Life Insurance.
(Approved by the Office of Management and Budget under control
number 2900-0618)
(Authority: 38 U.S.C. 1965, 1966, 1967, 1980)
[FR Doc. 2025-18828 Filed 9-26-25; 8:45 am]
BILLING CODE 8320-01-P
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</html>Indexed from Federal Register on September 29, 2025.
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