[Congressional Record Volume 156, Number 118 (Thursday, August 5, 2010)]
[Senate]
[Page S6890]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. CARDIN:
  S. 3718. A bill to amend title 38, United States Code, to ensure that 
beneficiaries of Servicemembers' Group Life Insurance receive financial 
counseling and disclosure information regarding life insurance 
payments, and for other purposes; to the Committee on Veterans' 
Affairs.
  Mr. CARDIN. Mr. President, I rise today to introduce the ``Securing 
America's Veterans Insurance Needs and Goals Act of 2010 or the SAVINGS 
Act of 2010. This is similar to a bill introduced in the House of 
Representatives by Congresswoman Deborah Halvorson and House Committee 
on Veterans' Affairs Chair Bob Filner.
  This bill ensures that beneficiaries of the Servicemembers' Group 
Life Insurance, SGLI, program receive financial counseling and full 
disclosure information regarding life insurance payments. Active duty 
members of the Armed Forces will be given more information as they 
decide on disbursement options for their beneficiaries. The SAVINGS Act 
offers specific protections and alternatives to life insurance policy 
beneficiaries. This bill requires an explanation of how the retained-
asset accounts differ from traditional checking accounts and leaves 
flexibility for the Secretary of the Department of Veterans Affairs to 
add more disclosure guidelines as he sees fit.
  I present this bill to improve the process for our servicemembers and 
their families. My concern is that what has become a common industry 
practice, may not be an appropriate solution for every family. The 
SAVINGS Act addresses this challenge by requiring a greater level of 
disclosure and financial counseling to beneficiaries. This bill helps 
families make sound financial decisions during a most difficult time.
  It will assist Marylanders and other Americans in difficult times. 
Last week National Public Radio profiled my constituent Cindy Lohman, 
of Great Mills, MD. Ms. Lohman lost her son Ryan when he was killed in 
a bombing in Afghanistan in August 2008. She had no idea that the 
package sent to her from the life insurance company would lead to more 
difficulty, during an already unbearable time.
  While a mother grieved, Prudential the company that administers the 
SGLI policies on behalf of the Veterans Affairs Secretary began to 
process her survivor's benefits. Understandably too distraught to take 
immediate action, Ms. Lohman put away the package for 6 months. After 
looking over the many pages of printed forms and seeing what appeared 
to be a checkbook, Ms. Lohman assumed the money was in a checking 
account.
  There were many details in that packet from the insurance company 
disclaimers and other specifics about the account. It turns out that 
this was not a standard, FDIC-insured account, but a retained-asset 
account managed by the insurance company.
  As we send soldiers to fight overseas, our support for our 
servicemembers and their families must remain steadfast and strong. I 
am proud to serve in this Congress that has worked to honor our 
commitment to our nation's veterans and to the families of our fallen 
heroes. This is a good bill because it shows our commitment to do what 
is in the best interest of the families of the noble men and women who 
serve in uniform.
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