2025-23682Rule

VA Fixes Traumatic Injury Insurance Payment Glitches

Published Date: 12/23/2025

Rule

Summary

The VA fixed a mistake in the Servicemembers' Group Life Insurance Traumatic Injury Protection program that affected payments for injuries stopping folks from doing daily tasks. This change helps ensure injured service members get the right support for 15, 30, 60, or 90 days after their injury. The new rule kicks in on January 22, 2026, making sure benefits are fair without costing extra.

Analyzed Economic Effects

3 provisions identified: 3 benefits, 0 costs, 0 mixed.

TSGLI ADL Payment Schedule Restored

If you are a Service member or Veteran covered by SGLI who cannot perform at least two activities of daily living because of a non‑TBI traumatic injury, the rule sets payments at $25,000 at the 30th consecutive day of ADL loss, an additional $25,000 at the 60th day, an additional $25,000 at the 90th day, and an additional $25,000 at the 120th day. This payment schedule is codified in 38 CFR 9.21(c)(20)(i)–(iv) and the rule is effective January 22, 2026.

Rule Preserves Low $1/month TSGLI Premium

TSGLI premiums remain $1.00 per month. VA says that if shorter ADL time periods had been used, that would have produced an additional 1,385 claims and $34.6 million in payouts (about $3.5 million per year on average), causing premium collections to cover only about 81% of claims and administrative expenses and putting upward pressure on the premium rate.

Fewer Claim Reprocessing and Appeals

VA says restoring the intended TSGLI payment schedule will prevent confusion and unnecessary re‑processing of claims and reduce the time VA staff would otherwise spend adjudicating appeals and handling inconsistencies. The agency describes these as qualitative benefits to stakeholders.

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Key Dates

Published Date
Rule Effective
12/23/2025
1/22/2026

Department and Agencies

Department
Independent Agency
Agency
Veterans Affairs Department
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