VETERANS
BENEFITS ADMINISTRATION, DEPARTMENT OF VETERANS AFFAIRS
AUTHORIZATION:
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:
Direct Loans. Place Cursor Here for Definition
Insurance. Place Cursor Here for Definition
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.
ELIGIBILITY
REQUIREMENTS:
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.
Beneficiary
Eligibility: 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.
Credentials/Documentation:
If a veteran does not initially take the automatic Mortgage Life
Insurance, he/she may apply later but will be required to submit
evidence that he/she meets established health requirements.
Pre-application
Coordination: None. This program is excluded
from coverage under E.O. 12372.
Application
Procedure: Upon receipt of VA's notice of
eligibility for Service-Disabled Veterans Insurance, a veteran
may apply by submitting the application on VA Form 29-4364. Upon
receipt of notice from VA that he/she qualifies for waiver of
premiums, an individual insured under Service-Disabled Veterans
Insurance may apply for additional supplemental coverage by submitting
an application on VA Form 29-0190. He/she may be guided by VA
Pamphlet 29-9 in selecting the type of policy. The form and pamphlet
may be obtained from the nearest VA office (listed in Appendix
IV of the Catalog) and submitted to the Philadelphia VA Regional
Office and Insurance Center, P.O. Box 7208, Philadelphia, PA 19101.
A veteran eligible for the Mortgage Protection Life Insurance
need only submit information and documentation to the Philadelphia
VA Regional Office and Insurance Center, P.O. Box 7208, Philadelphia,
PA 19101.
Award
Procedure: 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. Mortgage Protection Life Insurance is automatically
issued to all veterans receiving a grant for specially adapted
housing.
Deadlines:
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
or before November 1, 1992, whichever is later. For Mortgage Protection
Life Insurance the veteran must respond within 60 days of a final
request for information.
Range
of Approval/Disapproval Time: 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.
Appeals:
If the application for insurance is denied, the veteran may file
an appeal with the Board of Veterans Appeals, VA Central Office,
811 Vermont Avenue, NW., Washington, DC 20420, up to 1 year after
the date of the notice of denial.
Renewals:
None.
ASSISTANCE
CONSIDERATIONS:
Formula
and Matching Requirements: Not applicable.
Length
and Time Phasing of Assistance: Not applicable.
Obligations:
(Loans) FY 01 $99,914,000; FY 02 est $93,790,000; and FY 03 est
$100,860,000. (Death claims, disability claims, mature endowments,
cash surrenders, dividends, interest paid on dividend credits
and deposits, payments to VA's General Operating Expenses appropriation
for administrative expenses, policy liens established. Totals
exclude policy loans and other expenses which are listed above.)
FY 01 $2,018,291; FY 02 est $2,057,538; and FY 03 est $2,053,540.
(Obligations for VI and I (H policies) have been included because
of direct payments to policyholders and beneficiaries.)
Range
and Average of Financial Assistance: Not available.
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.
INFORMATION
CONTACTS:
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.
Headquarters
Office: Department of Veterans Affairs Regional
Office and Insurance Center, P.O. Box 42954, Philadelphia, PA
19101. For all States and Mortgage Protection Life Insurance call
1-800-669-8477.
