Life Insurance for Veterans

To provide life insurance protection for veterans of World War I, World War II, Korean conflict, Vietnam conflict, Gulf era conflicts and service-disabled veterans separated from active duty on or after April 25, 1951, and to provide mortgage protection life insurance for those disabled veterans who are given a VA grant to secure specially adapted housing under Chapter 21, Title 38, U.S.C. Also to provide life insurance protection for current members of the uniformed services with coverage on their lives and the lives of their spouses and children.

All of the programs are closed for new issues except Service-Disabled Veterans Insurance, Veterans Mortgage Life Insurance, Service members' Group Life Insurance and Veterans Group Life Insurance. A veteran discharged from active military duty, on or after April 25, 1951, who has been granted a service connection for a new disability, and who, if not for the disability would be otherwise insurable in accordance with the established standards of good health, applies for such coverage within 2 years from the date of notice of the VA service-connected rating, may be issued Service-Disabled Veterans Insurance. (The time period in which to apply is limited to one year from the date of notice of the VA service-connected rating if the notice was provided before September 1, 1991.) A veteran insured under Service-Disabled Veterans Insurance who qualifies for waiver of premiums, who is under age 65 and who applies within one year from date of notice from VA that he/she qualifies for waiver of premiums, may be issued Supplemental Service-Disabled Veterans Insurance coverage. A veteran who has been given a VA grant for specially adapted housing will be sent notice that he/she is automatically insured for mortgage protection unless he/she elects in writing not to be so insured, or fails to respond within 60 days after a final request for information on which premium can be based is mailed to him/her. Service members are automatically covered for the maximum coverage amount of life insurance on themselves and a spouse, unless the member declines or reduces the coverage in writing. Service members are also automatically covered by Servicemembers' Traumatic Injury Protection (TSGLI), which provides automatic traumatic injury coverage to all service members under SGLI. TSGLI provides for payment between $25,000 and $100,000 (depending on the type of injury) to SGLI members who sustain a traumatic injury that results in certain severe losses. Coverage of children is on "dependent" children and no premium is paid. Veterans are eligible to convert their Service members' Group Life Insurance in an amount up to the coverage held on their date of discharge. If a veteran is totally disabled at time of discharge, the veteran is eligible for a one-year disability extension of their Service members' Group Life Insurance and the conversion to Veterans' Group Life Insurance.

The veteran may apply for either type of insurance. However, if the veteran is mentally incompetent, a VA recognized fiduciary may apply on his/her behalf for Service-Disabled Veterans Insurance. Service-Disabled Veterans Insurance may also be granted under certain conditions to mentally incompetent veterans who were otherwise eligible for such insurance, but due to their incompetency, died without filing an application.

The veteran may apply for either type of insurance. However, if the veteran is mentally incompetent, a VA recognized fiduciary may apply on his/her behalf for Service-Disabled Veterans Insurance. Service-Disabled Veterans Insurance may also be granted under certain conditions to mentally incompetent veterans who were otherwise eligible for such insurance, but due to their incompetency, died without filing an application.

Life insurance settlement upon death of insured; or the insured may personally surrender a permanent plan policy for cash; or the insured may be granted a loan up to 94 percent of the cash surrender value of a permanent plan policy. Interest on United States Government Life Insurance (WWI) policy loans is charged at the rate of 5 percent per annum. Interest is charged at a variable rate which may change annually for National Service Life (WWII), Veterans Special Life (Korean conflict), Service-Disabled Veterans (Korean Conflict and Continuing) and Veterans Reopened Insurance policies. The variable rate equals the yield on the Ten-Year Constant Maturities Index for U.S. Treasury Securities for the month of June of each year rounded down to the next whole percentage. This loan rate is effective from the first day of October of each year and will not exceed 12 percent or be lower than 5 percent per annum. Dividends are paid on United States Government Life (WWI), National Service Life (WWII), Veterans Special Life (Korean Conflict), and Veterans Reopened Insurance. Dividends are not paid on Service-Disabled Veterans Insurance (Korean Conflict and continuing), or the Veterans Mortgage Life Insurance. The face amount of the policy, less any indebtedness on the policy, is payable to the designated beneficiary upon the insured's death under a regular life policy, and only to the mortgage holder under Veterans Mortgage Life Insurance coverage. In Servicemembers' Group Life Insurance, life insurance settlement upon death of insured, insured's spouse or insured's dependent children and the Accelerated Benefits Option can be used on both the member's own coverage and coverage of the member's spouse. In Veterans' Group Life Insurance, life insurance settlement upon death of the insured.

None. This program is excluded from coverage under E.O. 12372.

Service-Disabled Veterans Insurance is issued by the Philadelphia Regional Office and Insurance Center to any veteran meeting the requirements listed under Applicant Eligibility above. Veterans Mortgage Life Insurance is automatically issued to all veterans receiving a grant for specially adapted housing. Veterans' Group Life Insurance and Disability Extension of Service members' Group Life Insurance are issued by the Office of Service members' Group Life Insurance to any veteran meeting the requirements listed under the Applicant Eligibility above.

From 1 to 3 months upon application for Service-Disabled Veterans Insurance after VA's notice of the service-connected rating. The time frame for approval/disapproval after an application for Supplemental Service Disabled Veterans Insurance coverage is received in VA is 1 month. Mortgage Protection Life Insurance is effective immediately upon approval of a specially adapted housing grant. The time frame for approval/disapproval after an application for Veterans' Group Life Insurance or Disability Extension of Servicemembers' Group Life Insurance is received by the Office of Servicemembers' Group Life Insurance is 2 to 4 weeks.

Generally within 2 years following the date of notice of VA's service-connected rating for Service-Disabled Insurance (the time period in which to apply is limited to one year from the date of notice of the VA Service-Connected rating if the notice was provided before September 1, 1991.) Check with local VA office for exceptions. For Service-Disabled Veterans Insurance supplemental coverage, the time period in which to apply is one year from the date of VA's notice that the veteran qualifies for waiver of premiums. For Veterans Mortgage Life Insurance the veteran must apply before age 70. For Veterans' Group Life Insurance, the veteran has 120 days from discharge to convert with no requirement of good health. A veteran has another year in which conversion can be done, but good health required. For the Disability Extension of Servicemembers' Group Life Insurance, the veteran must make application within the two-year period for which the extension would be granted. There are currently no time limits for TSGLI claims.