Prorated benefits will be paid for any part of a month after the first 30 days. Keep in mind that benefits provide an income supplement. If benefits are paid, taxes will not be withheld. DFAS will issue an IRS Form 1099. Like most insurance programs, premiums are continuously collected to build the fund from which benefits are paid.
Premium rates can go up or down depending on the financial soundness of the program.
The DoD Board of Actuaries is required by law to recommend changes based on periodic assessment of the value of benefits. If benefits are adjusted due to inflation, then there would be a corresponding adjustment to premium rates. The law does not currently provide for an increase in coverage. Benefits that cannot be paid will be deferred and may be paid only after and to the extent that additional funds become available. Remember, a decision to decline coverage now may not be revoked without a change to the current law.