Content provided by the Catalog of Federal Domestic Assistance
64.103 Life Insurance for Veterans
VETERANS BENEFITS ADMINISTRATION, DEPARTMENT OF VETERANS AFFAIRS
War Risk Insurance Act, as amended, Public Law 65- 90; World War Veterans Act, Public Law 68-242, as amended; National Service Life Insurance Act, Public Law 76-801, as amended; Servicemen's Indemnity and Insurance Act, Public Law 82-23; Public Law 88-664; Public Law 92-95, as amended; 38 U.S.C. 1903, 1922, 1923, 1925, 1941 and 2106.
To provide life insurance protection for veterans of World War I, World War II, Korean conflict 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.
TYPES OF ASSISTANCE:
USES AND USE RESTRICTIONS:
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 Mortgage Protection 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 the Mortgage Protection Life coverage.
Applicant Eligibility: All of the programs are closed for new issues except Service-Disabled Veterans Insurance and the Mortgage Protection Life Insurance. A veteran discharged from active military duty, on or after April 25, 1951, who has a service-connected disability for which compensation would be payable if 10 percent or more in degree, 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 or before November 1, 1992, whichever is later, 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.
Pre-application Coordination: None. This program is excluded from coverage under E.O. 12372.
Formula and Matching Requirements: Not applicable.
POST ASSISTANCE REQUIREMENTS:
Reports: Not applicable.
Account Identification: 36-8150-0-7-701; 36-8132-0-7-701; 36-8455-0-8-701; 36-4012-0-3-701; 36-4010-0-3-701; 36-0120-0-1-701.
Since the inception of the USGLI, NSLI, VSLI, VRI, and S-DVI programs, $84.2 billion have been collected as income to the funds, $68.9 billion have been distributed to policyholders and beneficiaries and $15.3 billion are currently being held in reserves for the payment of future liabilities of the funds. At the end of 1999, almost 2.3 million of over 24 million policies originally issued remained in force.
REGULATIONS, GUIDELINES, AND LITERATURE:
38 CFR Chapter 1, Part 6, 6.2 through 6.210, Part 8, 8.0 through 8.186; "Information about Conversion and Premium Rates" (for present holders of NSLI V, RS, W, H and RH Policies), VA Pamphlet 29-73-1; "National Service Life Insurance Information about Waiver of Premium and Total Disability Income Provision," VA Pamphlet 29-14; "Dividend Options Fact Pamphlet For Government Life Insurance," VA Pamphlet 29-77-1. "Facts About Beneficiary and Option Designations," VA Pamphlet 29-77-3. For Mortgage Protection Life Insurance, 38 CFR Chapter 1, Part 8a, 8a.1 - 8a.7; "Veterans Mortgage Life Insurance Information and Premium Rates" (VMLI), VA Pamphlet 29-79-2; "Federal Benefits for Veterans and Dependents," VA Pamphlet 80-00-1, $5.00, available from Superintendent of Documents, P.O. Box 371954, Pittsburgh, PA 15250-7954. The stock number is: 051- 000-0220-2. All necessary material and information are furnished each eligible veteran as the grant for specially adapted housing is approved.
Regional or Local Office: For all States, contact the Department of Veterans Affairs, P.O. Box 42954, Philadelphia, PA 19101. This office should also be contacted about Mortgage Protection Life Insurance.
EXAMPLES OF FUNDED PROJECTS:
CRITERIA FOR SELECTING PROPOSALS: