A bill to amend chapter 19 of title 38, United States Code, to provide an additional amount of Servicemen's Group Life Insurance for death in combat, to direct the Secretary of Veterans Affairs to pay a death gratuity to certain survivors of members of the uniformed services who die in the Persian Gulf combat zone, and for other purposes.

Amends Federal veterans' benefits provisions relating to the provision of Servicemen's Group Life Insurance (SGLI) to veterans to provide that any such policy shall automatically insure a member of the armed forces on active duty against a death in combat. Provides that the amount of such insurance shall be $200,000 unless the member elects not to be so insured or to be insured for a lesser amount evenly divisible by $10,000. States that such insurance is in addition to the regular amount of insurance provided under SGLI, but provides that the total of such insurance may not exceed $200,000. Requires the Secretary of Veterans Affairs to ensure that each eligible individual is notified of and afforded the opportunity to increase his or her coverage.

Directs the Secretary to pay to the beneficiary of each member of the armed forces who dies as a result of illness or injuries incurred or aggravated during the Persian Gulf War a death gratuity of $200,000 less the amount payable to such member under current SGLI provisions. Requires the beneficiary to apply for such gratuity within one year of the death of the member.