Posted on 01/31/2005 1:55:58 AM PST by Former Military Chick
If there is any common ground for agreement left between the warring political parties in Congress it should be in protecting the welfare of the loved ones of American soldiers who die in combat. At the moment, the nation's gratitude for those who have given their utmost is a paltry $12,420 — in many cases hardly enough to pay for funeral expenses.
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Since established under Theodore Roosevelt in 1908 as a bonus for Civil War veterans, the gratuity, originally a few hundred dollars, has been increased several times but not by much. It went to $1,800 to $3,000 (depending on rank) in 1956. During the Gulf war, it was raised to $6,000 with half of it taxable. In 2003, it was increased to $12,000 and was made tax-free and tied to military pay raises. On Jan. 1, the 3½ percent pay increase for all military personnel boosted it $420.
Currently, the Army provides both an opportunity for its troops to buy at a low rate a $250,000 term life insurance policy and a death benefit of $6,900. Plus there is a limited monthly stipend for wives. There have been complaints that paperwork has slowed the insurance payments, and some wives and children have been financially as well as emotionally devastated.
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Whatever the reasons for this push, it is an opportunity for both parties to put aside some of the animosity already so obvious in the new Congress and do something for the most deserving among us. Chances seem fairly good few lawmakers will want to vote against it, especially those who have been so critical of Iraq and current Pentagon policies.
(Excerpt) Read more at washingtontimes.com ...
I am sure there is something us little people can do to help those that serve to keep us safe.
If the federal government were to underwrite the cost of those $250,000 term life policies, they not only would solve the problem of insufficient death benefits, but they would most likely save money on the premiums due to group coverage.
THEN, provide the option for all military members to double, triple or quadruple that term life base amount of 250K. If the additional premiums are (for example) $20, 30 or $40 a month, the feds pay 33 percent, the insured pays the remainder of the premium. Now THAT is more than fair and equitable.
In addition, should a member of the U.S. military lose their life in the service of our Nation, the surviving family members (in the deceased's household) should be given a 12 to 18 month tax holiday at the federal level. No taxes to be collected for 18 months would also ease the financial burdens of those left behind.
There is something we can do.
Personally, we've started doing something since I found out about the Freedom Alliance.
Freedom Alliance was started I believe by Ollie North and is heavily promoted by Sean Hannity.
It provides funds for the children of slain servicemen to go to college.
Very worthwhile in my opinion, we donate regularly.
These kids would start life at a severe disadvantage without this fund.
Families of those killed on 9/11 were made millionaires by the US government...
We need to do better for military personnel risking their lives while we sleep.
My congressman, Dennis Moore of Kansas, submitted this proposal in a bipartisan bill with an Alabama congressman last year. It died in the House. I know that he'll support it this year.
I agree we could do better for those who die in service of the country. As a recent Navy retiree, I find the $16.00 per month SGLI premium very low on the list of benefit items that need fixing. I'll point out that the coverage is automatic and the servicemember must opt out in writing. In my 23 years of service I never knew anyone who opted out and the chain of command would do everything it could to adjust the shortsighted servicemember's decision.
If anything needs fixing its the monthly survivors indemnity that comes from the VA. It's only about 30K a year for a surviving spouse with two kids. It's just not enough for a surviving spouse and kids.
The big injustice is having servicemembers buying their own educational benefits! It costs $1200 to buy into the Montgomery Era GI bill. When I entered in 1981, a Carter legacy program called VEAP was in place. It cost $2700(in 1981 dollars) to buy $8100 in college benefits.
This is just grandstanding IMHO. Any bill that relieves the servicemember of the monthly SGLI premium will probably just lower basic pay by $16.00 a month. The SGLI premium has been around so long its de facto figured into the pay tables which have gone up substancially under this President.
Just one point to remember - the SGLI is probably the ONLY insurance that services members can actually buy. Most other insurances have clauses which exclude war deaths.
The SGLI, in order to insure at a "low" rate, most likely IS somehow underwritten - otherwise, as a company, the risk is too high.
Point taken on tax free in a war zone. I was thinking more about the domestic taxes that are collected from families WHILE their loved ones are in that war zone. I see nothing wrong, and lots of things right about exempting the entire immediate family from taxes during a period of wartime service, and especially if that loved one doesn't come back.
The secret to low tax's when you are in the military is as follows, make a state income tax free state you legal residence, get a billet in a state like Virgina when the state sales tax is around 4%.
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