To amend title 38, United States Code, to enhance military and veterans' life insurance programs administered by the Secretary of Veterans Affairs, and for other purposes.

Summary: Disabled Veterans Life Insurance Enhancement Act of 2005 - Amends Federal provisions concerning service-disabled veterans' life insurance to make the amount of such insurance $50,000, or such lesser amount evenly divisible by $10,000.

States that the premium rates for such insurance for months beginning: (1) before the date of enactment of this Act shall be based upon the Commissioners 1941 Standard Ordinary Table of Mortality and interest at the rate of two and one-fourth percent per year; and (2) on or after the date of enactment of this Act shall be based upon such Table at a four and one-half percent interest rate. Makes the same changes with respect to all policy cash, loan, paid-up, and extended values.

Increases from $90,000 to $200,000 the maximum amount of veterans' mortgage life insurance coverage.

Includes still-born children within dependent coverage under the Servicemembers Group Life Insurance program.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Disabled Veterans Life Insurance 
Enhancement Act of 2005''.

SEC. 2. REDUCTION IN PREMIUMS UNDER SERVICE-DISABLED VETERANS INSURANCE 
              PROGRAM.

    Section 1922(a) of title 38, United States Code, is amended--
            (1) by inserting ``(1)'' after ``(a)''; and
            (2) by striking the fourth sentence and all that follows 
        and inserting the following:
    ``(2) Insurance granted under this section shall be issued upon the 
same terms and conditions as are contained in the standard policies of 
National Service Life Insurance, except that--
            ``(A) the amount of such insurance shall be $50,000, or 
        such lesser amount, evenly divisible by $10,000, as the insured 
        may specify;
            ``(B) the premium rates for such insurance--
                    ``(i) for premiums for months beginning before the 
                date of the enactment of the Disabled Veterans Life 
                Insurance Enhancement Act of 2005 shall be based on the 
                Commissioners 1941 Standard Ordinary Table of Mortality 
                and interest at the rate of 2\1/4\ percent per year; 
                and
                    ``(ii) for premiums for months beginning on or 
                after that date shall be based upon the 2001 
                Commissioners Standard Ordinary Table of Mortality and 
                interest at the rate of 4\1/2\ percent per year;
            ``(C) all cash, loan, paid-up, and extended values--
                    ``(i) for a policy issued under this section before 
                the date of the enactment of the Disabled Veterans Life 
                Insurance Enhancement Act of 2005 shall be based upon 
                the Commissioners 1941 Standard Ordinary Table of 
                Mortality and interest at the rate of 2\1/4\ percent 
                per year; and
                    ``(ii) for a policy issued under this section on or 
                after that date shall be based upon the 2001 
                Commissioners Standard Ordinary Table of Mortality and 
                interest at the rate of 4\1/2\ percent per year;
            ``(D) all settlements on policies involving annuities shall 
        be calculated on the basis of the Annuity Table for 1949, and 
        interest at the rate of 2\1/4\ percent per year;
            ``(E) insurance granted under this section shall be on a 
        nonparticipating basis;
            ``(F) all premiums and other collections for insurance 
        under this section shall be credited directly to a revolving 
        fund in the Treasury of the United States; and
            ``(G) any payments on such insurance shall be made directly 
        from such fund.
    ``(3) Appropriations to the fund referred to in subparagraphs (F) 
and (G) of paragraph (2) are hereby authorized.
    ``(4) As to insurance issued under this section, waiver of premiums 
pursuant to section 602(n) of the National Service Life Insurance Act 
of 1940 and section 1912 of this title shall not be denied on the 
ground that the service-connected disability became total before the 
effective date of such insurance.''.

SEC. 3. INCREASE TO $200,000 IN MAXIMUM COVERAGE UNDER VETERANS' 
              MORTGAGE LIFE INSURANCE PROGRAM.

    (a) Increase.--Subsection (b) of section 2106 of title 38, United 
States Code, is amended--
            (1) by inserting ``(1)'' after ``(b)'';
            (2) by designating the second, third, and fourth sentences 
        as paragraphs (2), (3), and (4), respectively;
            (3) in paragraph (1), as designated by paragraph (1) of 
        this subsection, by striking ``may not exceed'' and all that 
        follows through ``on the housing unit.'' and inserting ``shall 
        be the amount of the loan outstanding on the housing unit, 
        except that--
                    ``(A) coverage may not exceed $200,000; and
                    ``(B) a veteran may elect, in writing, to be 
                covered for less than the maximum coverage 
                available.''; and
            (4) in paragraph (2), as designated by paragraph (2) of 
        this subsection, by striking ``of such insurance'' and 
        inserting ``of insurance provided a veteran under this 
        section''.
    (b) Conforming Amendment.--Subsection (g) of such section is 
amended by striking ``of this section or'' and inserting ``or an 
election under that subsection or by''.
    (c) Effective Date.--The amendments made by subsection (a) shall 
take effect at the end of the 120-day period beginning on the date of 
the enactment of this Act.

SEC. 4. INCLUSION OF STILL-BORN CHILDREN IN DEPENDENT-COVERAGE UNDER 
              SERVICEMEMBERS GROUP LIFE INSURANCE PROGRAM.

    (a) Coverage of Still-Born Children.--Section 1965(10) of title 38, 
United States Code, is amended by adding at the end the following new 
subparagraph:
                    ``(C) The member's natural child from the fetal 
                gestational age of 20 weeks (or from a fetal weight of 
                450 grams if gestational age cannot be determined), 
                other than a case in which there is an induced 
                termination of pregnancy.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect as of November 1, 2001.