US Code

Public Law 119-73 (01/23/2026)

38 U.S.C. § 1969

Deductions; payment; investment; expenses

(a)
(1)
During any period in which a member, on active duty or active duty for training under a call or order to such duty that does not specify a period of less than thirty-one days, is insured under Servicemembers’ Group Life Insurance, there shall be deducted each month from the member’s basic or other pay until separation or release from such duty an amount determined by the Secretary (which shall be the same for all such members) as the share of the cost attributable to insuring such member under such policy, less any costs traceable to the extra hazard of such duty in the uniformed service.
(2)
(A)
section 1965(5) of this titlesection 1966 of this title During any month in which a member is assigned to the Ready Reserve of a uniformed service under conditions which meet the qualifications of (subparagraph (B) or (C) of , and is insured under a policy of insurance purchased by the Secretary, under , there shall be contributed from the appropriation made for active duty pay of the uniformed service concerned an amount determined by the Secretary (which shall be the same for all such members) as the share of the cost attributable to insuring such member under this policy, less any costs traceable to the extra hazards of such duty in the uniformed services. Any amounts so contributed on behalf of any individual shall be collected by the Secretary concerned from such individual (by deduction from pay or otherwise) and shall be credited to the appropriation from which such contribution was made.
(B)
If an individual who is required pursuant to subparagraph (A) to make a direct remittance of costs to the Secretary concerned fails to make the required remittance within 60 days of the date on which such remittance is due, such individual’s insurance with respect to which such remittance is required shall be terminated by the Secretary concerned. Such termination shall be made by written notice to the individual’s official address and shall be effective 60 days after the date of such notice. Such termination of insurance may be vacated if, before the effective date of termination, the individual remits all amounts past due for such insurance and demonstrates to the satisfaction of the Secretary concerned that the failure to make timely remittances was justifiable.
(3)
During any fiscal year, or portion thereof, that a member is on active duty or active duty for training under a call or order to such duty that specifies a period of less than thirty-one days, or is authorized or required to perform inactive duty training scheduled in advance by competent authority, and is insured under Servicemembers’ Group Life Insurance, the Secretary concerned shall collect from the member (by deduction from pay or otherwise) an amount determined by the Secretary (which shall be the same for all such members) as the share of the cost attributable to insuring such member under such policy, less any costs traceable to the extra hazard of such duty in the uniformed service.
(4)
Any amount not deducted from the basic or other pay of a member insured under Servicemembers’ Group Life Insurance, or collected from the member by the Secretary concerned, if not otherwise paid, shall be deducted from the proceeds of any insurance thereafter payable. The initial monthly amount under paragraph (1) or (2) hereof, or fiscal year amount under paragraph (3) hereof, determined by the Secretary to be charged under this section for Servicemembers’ Group Life Insurance may be continued from year to year, except that the Secretary may redetermine such monthly or fiscal year amounts from time to time in accordance with experience. No refunds will be made to any member of any amount properly deducted from the member’s basic or other pay, or collected from the member by the Secretary concerned, to cover the insurance granted under Servicemembers’ Group Life Insurance.
(b)
For each month for which any member is so insured, there shall be contributed from the appropriation made for active duty pay of the uniformed service concerned an amount determined by the Secretary and certified to the Secretary concerned to be the cost of Servicemembers’ Group Life Insurance which is traceable to the extra hazard of duty in the uniformed services. Effective , such cost shall be determined by the Secretary on the basis of the excess mortality incurred by members and former members of the uniformed services insured under Servicemembers’ Group Life Insurance above what their mortality would have been under peacetime conditions as such mortality is determined by the Secretary using such methods and data as the Secretary shall determine to be reasonable and practicable. The Secretary is authorized to make such adjustments regarding contributions from pay appropriations as may be indicated from actual experience.
(c)
An amount equal to the first amount due on Servicemembers’ Group Life Insurance may be advanced from current appropriations for active-service pay to any such member, which amount shall constitute a lien upon any service or other pay accruing to the person from whom such advance was made and shall be collected therefrom if not otherwise paid. No disbursing or certifying officer shall be responsible for any loss incurred by reason of such advance.
(d)
(1)
The sums withheld from the basic or other pay of members, or collected from them by the Secretary concerned, under subsection (a) of this section, and the sums contributed from appropriations under subsection (b) of this section, together with the income derived from any dividends or premium rate adjustments received from insurers shall be deposited to the credit of a revolving fund established in the Treasury of the United States. All premium payments and extra hazard costs on Servicemembers’ Group Life Insurance and the administrative cost to the Department of insurance issued under this subchapter shall be paid from the revolving fund.
(2)
section 1966 of this title The Secretary is authorized to set aside out of the revolving fund such amounts as may be required to meet the administrative costs to the Department of insurance issued under this subchapter and all current premium payments and extra hazard costs on any insurance policy or policies purchased under . The Secretary of the Treasury is authorized to invest in and to sell and retire special interest-bearing obligations of the United States for the account of the revolving fund. Such obligations issued for this purpose shall have maturities fixed with due regard for the needs of the fund and shall bear interest at a rate equal to the average market yield (computed by the Secretary of the Treasury on the basis of market quotations as of the end of the calendar month next preceding the date of issue) on all marketable interest-bearing obligations of the United States then forming a part of the public debt which are not due or callable until after the expiration of four years from the end of such calendar month; except that where such average market yield is not a multiple of one-eighth of 1 per centum, the rate of interest of such obligation shall be the multiple of one-eighth of 1 per centum nearest such market yield.
(3)
section 1982 of this title Notwithstanding the provisions of , the Secretary shall, from time to time, determine the administrative costs to the Department which in the Secretary’s judgment are properly allocable to insurance issued under this subchapter and shall transfer such cost from the revolving fund to the appropriation “General Operating Expenses, Department of Veterans Affairs”.
(e)
The Secretary of Defense shall prescribe regulations for the administration of the functions of the Secretaries of the military departments under this section. Such regulations shall prescribe such procedures as the Secretary of Defense, after consultation with the Secretary, may consider necessary to ensure that such functions are carried out in a timely and complete manner and in accordance with the provisions of this section, including specifically the provisions of subsection (a)(2) of this section relating to contributions from appropriations made for active duty pay.
(f)
(1)
No tax, fee, or other monetary payment may be imposed or collected by any State, or by any political subdivision or other governmental authority of a State, on or with respect to any premium paid under an insurance policy purchased under this subchapter.
(2)
Paragraph (1) of this subsection shall not be construed to exempt any company issuing a policy of insurance under this subchapter from the imposition, payment, or collection of a tax, fee, or other monetary payment on the net income or profit accruing to or realized by that company from business conducted under this subchapter, if that tax, fee, or payment is applicable to a broad range of business activity.
(g)
(1)
(A)
During any period in which a spouse of a member is insured under this subchapter and the member is on active duty, there shall be deducted each month from the member’s basic or other pay until separation or release from active duty an amount determined by the Secretary as the premium allocable to the pay period for providing that insurance coverage. No premium may be charged for providing insurance coverage for a child.
(B)
section 1965(5) of this titlesection 1966 of this title During any month in which a member is assigned to the Ready Reserve of a uniformed service under conditions which meet the qualifications set forth in subparagraph (B) or (C) of and the spouse of the member is insured under a policy of insurance purchased by the Secretary under , there shall be contributed from the appropriation made for active duty pay of the uniformed service concerned an amount determined by the Secretary as the share of the cost attributable to insuring the spouse of such member under this policy, less any costs traceable to the extra hazards of such duty in the uniformed services. Any amounts so contributed on behalf of any individual shall be collected by the Secretary concerned from such individual (by deduction from pay or otherwise) and shall be credited to the appropriation from which such contribution was made.
(2)
(A)
The Secretary shall determine the premium amounts to be charged for life insurance coverage for spouses of members under this subchapter.
(B)
The premium amounts shall be determined on the basis of sound actuarial principles and shall include an amount necessary to cover the administrative costs to the insurer or insurers providing such insurance.
(C)
Each premium rate for the first policy year shall be continued for subsequent policy years, except that the rate may be adjusted for any such subsequent policy year on the basis of the experience under the policy, as determined by the Secretary in advance of that policy year.
(h)
section 1968(a)(5) of this title Any overpayment of a premium for insurance coverage for an insurable dependent of a member that is terminated under shall be refunded to the member.

Pub. L. 89–214, § 1(a)79 Stat. 881Pub. L. 91–291, § 484 Stat. 329Pub. L. 93–28988 Stat. 168Pub. L. 97–66, title IV, § 40295 Stat. 1031Pub. L. 99–576, title VII, § 701(39)100 Stat. 3293Pub. L. 100–322, title III, § 332(a)102 Stat. 537Pub. L. 102–83105 Stat. 404–406Pub. L. 103–337, div. A, title VI, § 651(d)108 Stat. 2793Pub. L. 103–446, title XII, § 1201(e)(8)108 Stat. 4685Pub. L. 104–106, div. A, title VI, § 647(a)110 Stat. 370Pub. L. 104–275, title IV110 Stat. 3337Pub. L. 106–419, title III, § 313(b)114 Stat. 1855Pub. L. 107–14, § 4(d)115 Stat. 29Pub. L. 109–13, div. A, title I, § 1012(c)(2)119 Stat. 245Pub. L. 109–80, § 2119 Stat. 2045Pub. L. 110–389, title IV, § 403(a)(2)(B)122 Stat. 4174(Added , , , § 769; amended , , ; , §§ 6, 10(2), , , 172; , , ; , , ; , , ; renumbered § 1969 and amended , §§ 4(a)(3), (4), (b)(1), (2)(E), 5(a), (c)(1), , ; , , ; , (i)(3), , , 4688; , , ; , §§ 402(d), 405(b)(1)(C), , , 3339; , , ; , , ; , , ; , , ; , (c), , .)

Editorial Notes

Amendments

Pub. L. 110–389, § 403(c)2008—Subsec. (g)(1)(B). , struck out “(which shall be the same for all such members)” after “determined by the Secretary”.

Pub. L. 110–389, § 403(a)(2)(B)section 1965(5) of this titlesection 1965(5)(B) of this title, substituted “subparagraph (B) or (C) of ” for “”.

Pub. L. 109–13, § 1012(c)(2)Pub. L. 109–80section 1967(e) of this titlesection 1967 of this title2005—Subsec. (b). , which directed designation of existing provisions as par. (1) and addition of par. (2), was repealed by . See Effective and Termination Dates of 2005 Amendments note below. Par. (2) read as follows: “For each month for which a member insured under this subchapter is serving in an operation or area designated as described by paragraph (1)(A) of , there may, at the election of the Secretary concerned under paragraph (4)(A) of such section, be contributed from the appropriation made for active duty pay of the uniformed service concerned an amount determined by the Secretary and certified to the Secretary concerned to be the cost of Servicemembers’ Group Life Insurance which is traceable to the cost of providing insurance for the member under in the amount of $150,000.”

Pub. L. 107–142001—Subsecs. (g), (h). added subsecs. (g) and (h).

Pub. L. 106–419section 1965(5) of this titlesection 1965(5)(B) of this title2000—Subsec. (a)(2)(A). substituted “subparagraph (B) or (C) of ” for “”.

Pub. L. 104–275, § 405(b)(1)(C)1996—Subsec. (a)(1). , substituted “Servicemembers’ Group” for “Servicemen’s Group”.

Pub. L. 104–106Subsec. (a)(2). designated existing provisions as subpar. (A) and added subpar. (B).

Pub. L. 104–275, § 402(d)(1)section 1965(5)(C) of this titlesection 1965(5)(D) of this titlesection 1965(5)(B) of this titleSubsec. (a)(2)(A). , struck out “is assigned to the Reserve (other than the Retired Reserve) and meets the qualifications of , or is assigned to the Retired Reserve and meets the qualifications of ,” after “qualifications of ,”.

Pub. L. 104–275, § 405(b)(1)(C)Subsec. (a)(3), (4). , substituted “Servicemembers’ Group” for “Servicemen’s Group” wherever appearing.

Pub. L. 104–275, § 405(b)(1)(C)Subsecs. (b) to (d)(1). , substituted “Servicemembers’ Group” for “Servicemen’s Group” wherever appearing.

Pub. L. 104–275, § 402(d)(2)Subsecs. (e) to (g). , (3), redesignated subsecs. (f) and (g) as (e) and (f), respectively, and struck out former subsec. (e) which related to premiums for Servicemen’s Group Life Insurance for members assigned to the Retired Reserve of a uniformed service.

Pub. L. 103–337, § 651(d)(1)section 1965(5)(D) of this titlesection 1965(5)(C) of this title1994—Subsec. (a)(2). , substituted “is assigned to the Reserve” for “or is assigned to the Reserve” and inserted “or is assigned to the Retired Reserve and meets the qualifications of ,” after “,”.

Pub. L. 103–446, § 1201(i)(3)Subsec. (d)(3). , substituted “Department of Veterans Affairs” for “Department”.

Pub. L. 103–446, § 1201(e)(8)Subsec. (e). , substituted “subsections (a) and (c) of section 1971” for “sections 1971(a) and (c)” and “subsections (d) and (e) of section 1971” for “sections 1971(d) and (e)”.

Pub. L. 103–337, § 651(d)(2), substituted “subparagraph (C) or (D) of section 1965(5)” for “section 1965(5)(C)”.

Pub. L. 102–83, § 5(a)section 769 of this title1991—, renumbered as this section.

Pub. L. 102–83, § 5(c)(1)Subsec. (a). , substituted “1965(5)(B)” for “765(5)(B)”, “1965(5)(C)” for “765(5)(C)”, and “1966” for “766” in par. (2).

Pub. L. 102–83, § 4(b)(1), (2)(E), substituted “Secretary” for “Administrator” wherever appearing.

Pub. L. 102–83, § 4(b)(1)Subsec. (b). , (2)(E), substituted “Secretary” for “Administrator” wherever appearing.

Pub. L. 102–83, § 4(a)(3)Subsec. (d)(1). , (4), substituted “Department” for “Veterans’ Administration”.

Pub. L. 102–83, § 5(c)(1)Subsec. (d)(2). , substituted “1966” for “766”.

Pub. L. 102–83, § 4(b)(1), (2)(E), substituted “Secretary” for “Administrator”.

Pub. L. 102–83, § 4(a)(3), (4), substituted “Department” for “Veterans’ Administration”.

Pub. L. 102–83, § 5(c)(1)Subsec. (d)(3). , substituted “1982” for “782”.

Pub. L. 102–83, § 4(b)(1), (2)(E), substituted “Secretary” for “Administrator” and “Secretary’s” for “Administrator’s”.

Pub. L. 102–83, § 4(a)(3), (4), substituted “Department” for “Veterans’ Administration” in two places.

Pub. L. 102–83, § 5(c)(1)Subsec. (e). , substituted “1965(5)(C)” for “765(5)(C)”, “1971(a)” for “771(a)”, “1966(b)” for “766(b)”, and “1971(d)” for “771(d)”.

Pub. L. 102–83, § 4(b)(1), (2)(E), substituted “Secretary” for “Administrator” wherever appearing.

Pub. L. 102–83, § 4(b)(1)Subsec. (f). , (2)(E), substituted “Secretary” for “Administrator”.

Pub. L. 100–3221988—Subsec. (g). added subsec. (g).

Pub. L. 99–576, § 701(39)(A)1986—Subsec. (a)(1). , substituted “the member’s” for “his”.

Pub. L. 99–576, § 701(39)(B)Subsec. (a)(3). , substituted “the member” for “him”.

Pub. L. 99–576, § 701(39)(C)Subsec. (a)(4). , substituted “the member” for “him” in two places and “the member’s” for “his”.

Pub. L. 99–576, § 701(39)(D)Subsec. (b). , substituted “the Administrator” for “he” before “shall determine”.

Pub. L. 99–576, § 701(39)(E)Subsec. (d)(3). , substituted “the Administrator’s” for “his”.

Pub. L. 99–576, § 701(39)(F)Subsec. (e). , substituted “the Administrator” for “he” before “may determine”.

Pub. L. 97–661981—Subsec. (f). added subsec. (f).

Pub. L. 93–289, § 6(1)section 766 of this title1974—Subsec. (a)(1). , substituted “is insured under Servicemen’s Group Life Insurance” for “is insured under a policy of insurance purchased by the Administrator, under ”.

Pub. L. 93–289, § 6(2)Subsec. (a)(2). , added par. (2). Former par. (2) redesignated (3).

Pub. L. 93–289, § 6(1)section 766 of this titleSubsec. (a)(3). , (2), redesignated former par. (2) as (3), and substituted “is insured under Servicemen’s Group Life Insurance” for “is insured under a policy of insurance purchased by the Administrator, under .” Former par. (3) redesignated (4).

Pub. L. 93–289, § 6(2)Subsec. (a)(4). , (3), redesignated former par. (3) as (4), and substituted “paragraph (1) or (2) hereof, or fiscal year amount under paragraph (3) hereof”, for “subsection (1) hereof, or fiscal year amount under subsection (2) hereof”, and “Servicemen’s Group Life Insurance” for “this subchapter” in two places, and for “insurance under this subchapter”.

Pub. L. 93–289, § 6(4)Subsec. (b). , substituted “Servicemen’s Group Life Insurance” for “such insurance” in first sentence, and “Servicemen’s Group Life Insurance” for “this subchapter” in second sentence.

Pub. L. 93–289, § 6(5)Subsec. (c). , substituted “Servicemen’s Group Life Insurance” for “any such insurance”.

Pub. L. 93–289, § 6(6)section 766 of this titleSubsec. (d)(1). , substituted “Servicemen’s Group Life Insurance” for “any insurance policy or policies purchased under ”.

Pub. L. 93–289, § 10(2)Subsec. (d)(3). , capitalized “Operating Expenses”.

Pub. L. 93–289, § 6(7)Subsec. (e). , added subsec. (e).

Pub. L. 91–291, § 4(1)1970—Subsec. (a). , separated provisions covering deduction of the cost of insurance from the pay of members into provisions covering such deduction in the case of persons on active duty or active duty for training under a call or order to such duty that does not specify a period of not less than thirty-one days and provisions covering such deduction in the case of persons on active duty or active duty for training under a call or order to such duty specifying a period of less than thirty-one days or persons authorized or required to perform inactive duty training scheduled in advance by competent authority and inserted provision for the collection of sums from individuals by the Secretary concerned.

Pub. L. 91–291, § 4(1)Subsec. (b). , substituted the mortality which members and former members of the uniform services concerned would have been under peacetime conditions as determined by the Administrator for the mortality of the male civilian population of the United States of the same age as the median age of members of the uniformed services as shown by the records of the uniformed services, the primary insurer or insurers, and the Department of Health, Education, and Welfare as the standard against which the excess mortality suffered by members of the uniformed services would be measured to determine the extent to which the cost of insurance was traceable to the extra hazard of active duty in the uniformed services.

Pub. L. 91–291, § 4(2)Subsec. (d)(1). , inserted reference to collection of sums by Secretary concerned.

Statutory Notes and Related Subsidiaries

Effective Date of 2008 Amendment

Pub. L. 110–389, title IV, § 403(e)(3)122 Stat. 4175

Public Law 107–14115 Stat. 25“The amendment made by subsection (c) [amending this section] shall take effect as if enacted on , immediately after the enactment of the Veterans’ Survivor Benefits Improvements Act of 2001 (; ).”
, , , provided that:

Effective and Termination Dates of 2005 Amendments

Pub. L. 109–80section 1012 of Pub. L. 109–13section 2 of Pub. L. 109–80section 1967 of this titleAmendment by effective , and this section shall be applied as if had not been enacted, see , set out as a note under .

Pub. L. 109–13Public Law 109–13section 115 of Pub. L. 109–77section 1967 of this titleAmendment by effective through the earlier of , or, with respect to certain sections of , the date of the enactment into law of legislation that supersedes the provisions of, or the amendments made by, those sections, see , set out as a note under .

Effective Date of 2001 Amendment

Pub. L. 107–14section 4(g)(1) of Pub. L. 107–14section 101 of this titleAmendment by effective on the first day of the first month that begins more than 120 days after , see , set out as a note under .

Effective Date of 1996 Amendment

Pub. L. 104–106section 647(c) of Pub. L. 104–106section 1968 of this titleAmendment by effective , see , set out as a note under .

Effective Date of 1988 Amendment

Pub. L. 100–322, title III, § 332(b)102 Stat. 537

“The amendment made by subsection (a) [amending this section] shall take effect with respect to premiums paid for periods beginning after .”
, , , provided that:

Effective Date of 1981 Amendment

Pub. L. 97–66section 701(b)(1) of Pub. L. 97–66section 1114 of this titleAmendment by effective , see , set out as a note under .

Effective Date of 1970 Amendment

Pub. L. 91–291section 14(a) of Pub. L. 91–291section 1317 of this titleAmendment by effective , see , set out as a note under .