There were additional sums added for those who died in the Iraq War, with a range from 250K to 800K that varied depending upon the rank and dependent family members. http://articles.latimes.com/2003/apr/05/news/war-benefits5
The state pays death benefits.
Plus SGLI is around half a million dollars, last I knew. Plus ongoing payments to surviving spouses, I don't know about parents though. There's a small premium for SGLI though, around ~$300/year I think
In practice, will they? Probably not. But weirder things have happened.
Just because they can do it at any time doesn't mean they ever will. We have a large and expensive professional army and people reacted badly to the draft in 1960s I can only imagine what today's kids would do if they were drafted. It would be political suicide to enact a draft.
So technically yes the state can forcefully draft any male between 18-28 to go fight in a war. But practically no, it will never happen again.