October 16,1972 M29-1, Part 1

Change 4

CONTENTS

CHAPTER 16. TOTAL DISABILITY INCOME PROVISION (NSLI AND USGLI)

PARAGRAPH PAGE\
16.01 General 16-1\
16.02 Amount 16-2\
16.03 Effective Date of Issue 16-2\
16.04 Age 16-3\
16.05 Benefits 16-3\
16.06 Payment of TDIP Premiums 16-5\
16.07 Premium Rates 16-6\
16.08 Requirements for Adding and Exchanging TDIP 16-6\
16.09 Termination of TDIP 16-7\
16.10 Reinstatement of TDIP 16-7\
16.11 Medical Examinations for TDIP 16-8\
16.12 Grace Period 16-8\
16.13 Conversion and TDIP 16-8\
16.14 Reduction and TDIP 16-9\
16.15 Change of Plan and TDIP 16-9\
16.16 Change of Premium Payment Period 16-9\
16.17 Restoration of TDIP-Age 60 16-10

16-i

M29-1, Part 1\
April 14, 1971 Change l

**CHAPTER 16. TOTAL DISABILITY INCOME PROVISION (NSLI AND USGLI)**

**16.01 GENERAL**

a\. Total disability, as referred to in connection with NSLI or USGLI
total disability income provision, is any impairment of mind or body
which continuously renders it impossible for the insured to follow any
substantially gainful occupation. An insured who becomes totally
disabled will receive a monthly income, and payment of

premiums will be waived on the TDIP as well as on the insurance policy
to which it is attached. The TDIP rider contains no occupational
restrictions or travel limitations.

b\. Without prejudice to any other cause of disability, the permanent
loss of the use of both feet, or both hands, or of both eyes, or of one
foot and one hand, or of one foot and one eye, or one hand one eye, or
the total loss of hearing of both ears, or the organic loss of speech,
shall be deemed to be statutory total disability for NSLI purposes.
Also, if an award on TDIP has been continuously in force for 20 or more
years it shall not be terminated except upon a showing that such rating
was based on fraud.

c\. Without prejudice to any other cause of disability, the permanent
loss of the use of both feet or both hands, or of both eyes, or of one
foot and one hand, or of one foot and one eye, or one hand and one eye,
or the total loss of hearing of both ears, or the organic loss of
speech, shall be deemed to be statutory total disability for USGLI
purposes if the TDIP was originally issued prior to December 15, 1936.
Also, if an award on TDIP has been continuously in force for 20 or more
years it shall not be terminated except upon a showing that such rating
was based on fraud.

d\. When the TDIP has been added and later it is determined that the
insured was totally disabled before the effective date of the provision,
the TDIP is incontestable, except where fraud is involved. However, no
monthly disability benefits can be paid thereunder because of total
disability commencing before the date of application or the effective
date of the provision. In such case, the insured may continue the TDIP
in force if he so desires, by payment of the necessary premiums. as
protection against any new total disability that may occur. However,
recovery must be made from the existing total disability. The insured
will be advised that it is his privilege to request that the TDIP be
canceled, as of the effective date of the provision and the premiums
refunded.

e\. A total disability income provision may be added to any NSLI or
USGLI policy, except policies issued under the NSLI RH program and the
USGLI Special Endowment at Age 96 plan. Also, TDIP may not be added to a
policy l under extended term insurance nor reduced paid-up insurance.
When an insurance policy with a TDIP rider is surrendered for reduced
paid-up insurance, the TDIP may be continued on the reduced paid up
insurance. The TDIP must be in multiples of \$500\[,\] but not less than
\$ 1,000( and the amount of the rider shall be the highest multiple of
\$500 that does not exceed the amount of the reduced paid-up Insurance.
If the amount of insurance on a reduced paid-up policy is less than
\$1,000\[,\] the TDIP rider may riot be carried over from the parent
policy. The basic premium for the TDIP rider on a reduced paid-up \[NSLI
policy, per \$ 1,000 of protection, will be the same as for the rider on
the parent policy. \[The premium for the TDIP rider on a reduced paid-up
USGLI policy must be computed.\]

f\. To be eligible for TDIP, the applicant must be in good health for
insurance purposes. Good health requirements may not be waived even
though the disability is service-connected. however, prior to January 1,
I950, when it was determined an applicant for NSLI TDIP was iii good
health except for a service-connected disability, a special \$5 age 60
TDIP was issued. These riders were identified with the letters \"HD\"
The premium for this disability coverage is credited directly to the
NSLI appropriation and all HD TDIP claims are paid from that
appropriation. All other \$5 age 60 TDIP riders are identified with the
letters \"ND\" Prior to October 28, 1948, protection ceased on all \$5
age 60 TDIP riders on the insured\'s 60th birthday. On and after that
date the protection ceases as of the anniversary date nearest the
insured\'s 60th birthday.

g\. Insurance that was surrendered after April 24, I 951, and before
January I. l 957, may be reinstated or replaced without proof of good
health, if all other requirements are met. If a \$5 age 60 TDIP rider
was in force on the date the insurance was surrendered, it may be
reinstated or replaced without proof of good health. (38 U.S.C. 781)

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M29-1, Part 1 April 14, I971\
Change I

h.. Application for an NSLI \$10 age 65 TDIP rider must he submitted
before he insured\'s 55th birthday. Prior to January l , 1966,
application must have been submitted before the insured\'s 60th
birthday.

i\. NSLI policyholders who have a \$5 or \$ 10 age 60 TDIP rider must
surrender it if they apply for and are issued the \$ 10 age 65 TDIP. If
they prefer, they may keep the \$5 or \$10 age 60 TDIP, even upon
conversion to a permanent plan. All \$5 age 60 TDIP riders (ND) where
the insurance age is 4l or over, and \$5 age 60 TDIP riders (HD), for
all ages, may be exchanged for a \$10 age 65 rider before the insured\'s
55th birthday upon submission of a full medical examination and meeting
all other requirements. If good health requirements are met, a standard
rider is issued to replace the \"HD\" rider. Where the insurance age is
under 41, the \$5 age 60 TDIP rider \"ND\" may be exchanged for the \$10
age 65 TDIP rider by submitting a nonmedical application. The \$l0 age
60 TDIP may be exchanged for a \$10 age 65 TDIP without evidence of good
health unless the applicant is totally disabled.

j\. TDIP premiums may not be waived under 38 U.S.C. 724.

**16.02 AMOUNT**

a\. Life TDIP may be issued in multiples of \$500, but not less than
\$1,000, nor more than the amount of insurance to which it is attached.
However, in certain instances an odd amount of TDIP may be continued in
force. This happens when the amount of insurance and TDIP are reduced to
the exact amount paid for on a date of birth and age correction. TDIP
may not be continued in force for less than \$ l ,000.

b\. A USGLI policy with TDIP attached on which a claim is granted for
TPD (total permanent disability) will receive claim payments on both the
TPD on the insurance policy and from the TDIP rider attached to the
policy. When the insured recovers and the insurance is rerated, the
amount of insurance rerated will be determined from the commuted value
of the unpaid guaranteed installments. While the amount of insurance in
force on the rerated policy is less than on the original contract, the
TDIP rider will not be reduced. The amount of protection on the TDIP
will remain the same as originally issued.

16.03 EFFECTIVE DATE OF ISSUE

a\. NSLI\--The effective date of the TDIP will be:

\(1\) The same date the policy becomes effective, if the policy and TDIP
are applied for at the same time, and all requirements are met. The
effective date of the TDIP may not be more than 3l days from the date of
the physical examination report or health statement.

\(2\) The last prior premium due date, if the policy is dated back or
has been previously issued, and all requirements are met; except that
when application is sent to the VA on a premium due date, the TDIP will
be effective as of that date.

\(3\) Prior to January 1, 1965, the TDIP effective date segment of the
master records on the term plan was changed to the 1965 policy
anniversary date. In addition, the TDIP age was changed to show the age
on ilk birthday nearest the 1965 policy anniversary. The effective date
and age on these policies will not be changed on subsequent renewals.

\(4\) The effective date of the \$5 (except HD riders) or \$10 age 60
TDIP is retained when exchanged for a \$10 age 65 TDIP. A \$5 age 60
TDIP (HD) rider exchanged for a \$10 age 65 TDIP rider will have current
effective date, as though the HD rider never existed.

b\. USGLI The effective date of the TDIP will be:

\(1\) The same date the policy becomes effective, if the policy and TDIP
are applied for at the same time, and all requirements are met.

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December 22, 1978 M29-l, Part I\
Change 8

\(2\) The last prior premium due date, if the policy is dated back or
has been previously issued and all requirements are met, unless the
applicant requests that it be effective as of the corresponding due date
in the following month.

16.04 AGE

a\. Permanent Plan

\(I\) NSLI-When application for TDIP is made at the same time as
insurance or subsequent to the effective date of the insurance policy,
the TDIP premium rate is based on the insured\'s age on his or her
birthday nearest the effective date of the TDIP.

\(2\) USGLI-When application is made for insurance and TDIP at the same
time, the TDIP premium rate is based on the insured\'s age on his or her
birthday nearest the effective date of the TDIP. When application for
TDIP is made subsequent to the effective date of the insurance, the TDIP
premium rate is based on the insurance issue age and duration in years
and months from the effective date of the insurance to the date the
rider is to be added. However, the issue age of the rider is shown as
the insured\'s age on his or her birthday nearest the effective date of
the TDIP.

b\. Term Insurance

\(1\) NSLI-When TDIP is added to a term policy on a date other than the
last renewal date, the TDIP premium rate is based on the insured\'s age
at renewal. At the next renewal, the age for the TDIP is the same as the
insurance age. The \$10 age 65 TDIP premium charged on the first renewal
after age 55 will remain constant until the insured\'s 65th birthday.
The \$10 age 65 TDIP rates on term insurance after age 55 are the same
as TDIP rates on Ordinary Life.

\(2\) USGLI-When application for TDIP is made as of the date of renewal,
the TDIP premium rate is based on the insurance age. When the TDIP is
added to a term policy as of a date subsequent to the effective date of
the term policy, a special calculated TDIP premium rate is based on the
issue age of the insurance policy and duration in years and months from
the effective date of the term policy to the effective date of the
rider. However, the issue age of the rider is shown as the insured\'s
age as of the effective date of the rider. The TDIP premium on term
insurance is the same as a TDIP premium on an Ordinary Life plan. The
premium rate for TDIP on the term policy does not increase at time of
renewal and is payable through the month in which the insured attains
age 65.

16.05 BENEFITS

a\. NSLI benefits are:

\(1\) \$5 Age 60 TDIP-This provision was available from August 1, 1946
to November l, 1958, with exception of those insured\'s with
service-incurred injury or disability who had only until January 1, 1950
to apply. The latter were classified as HD riders. The provision
provides a monthly income of \$5 for each \$ l ,000 of insurance in
force, as long as the insured is totally disabled, provided total
disability begins before \[the insured\'s\] 60th birthday or the
anniversary date of the policy nearest the 60th birthday, whichever is
later, and \[the insured\] remains so disabled for at least 6
consecutive months. The 6-month period may extend beyond the insured\'s
60th birthday or the anniversary date of the policy nearest the 60th
birthday, whichever is later.

\(2\) \$10 Age 60 TDIP-This provision was available from November 1,
1958, to January 1, 1965. It provides a monthly income of \$10 for each
\$1,000 of insurance in force, as long as the insured is totally
disabled, if total disability begins before his or her 60th birthday and
continues for at least 6 consecutive months. The 6-month period may
extend beyond the 60th birthday.

\(3\) \$10 Age 65 TDIP-This provision became effective January l, 1965
and is still available. It provides a monthly income of \$10 for each
\$1,000 of insurance in force, as long as the insured is totally
disabled, if the total disability begins before his or her 65th birthday
and continues for at least 6 consecutive months. The 6-month period may
extend beyond the 65th birthday.

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M29-1, Part 1 December 22, l978

Change 8

\(4\) Monthly Payments-The monthly income payments described above begin
with the first day of the 7th consecutive month (not calendar month) of
continuous total disability and will continue for as long as the insured
remains totally disabled. These monthly payments do not reduce the face
amount of the policy.

\(5\) Waiver of Premiums-Payment of premiums on this provision will be
waived during continuous total disability beginning with the first
monthly premium due after the start of disability. Premiums paid to
cover a period during which the waiver is effective will be refunded in
cash, without interest.

\(6\) Application for Benefits-The insured must submit an application
for TDIP benefits and must file proof of total disability while the TDIP
is in force, or within 1 year after the provision has ceased to be in
effect. \[Application\] for TDIP benefits should \[be made on\] VA Form
29-357, Claim for Disability Insurance Benefits. \[ \] Total disability
must have started after the date of application for TDIP, or the
effective date of the provision, whichever is later. If the insured dies
without filing an application and it is determined that the insured\'s
failure to file such application was due to circumstances beyond his or
her control, the application and required proof may be filed by the
beneficiary within 1 year after the death of the insured. Any monthly
income payments due the insured because of total disability and not paid
during his or her lifetime, will be paid to the beneficiary in a lump
sum, without interest.

b\. USGLI benefits are:

\(I\) TDIP authorized by the Amendment of May 29, 1928, to section 311
of the WWI Veterans Act of 1924. This provision was available between
May 29, I928, and July 3, 1930. Benefits are available for the life of
the policy. It provides a monthly disability income of \$5.75 for each
\$1,000 of insurance, if the insured becomes totally disabled and
remains so disabled for a period of 12 months or more. When an insured
has been receiving monthly disability income from TDIP and from TPD
(total permanent disability) and recovers, the insurance will be rerated
to a reduced amount but the TDIP will not be reduced. Therefore, under
these conditions, the TDIP amount may be larger than the insurance
amount on the rerated policy.

\(a\) Monthly Payments-The monthly disability income payments commence
after the 1-year waiting period and date back to the date the disability
began. The payments will continue as long as the insured is totally
disabled.

\(b\) Waiver of Premiums-Premiums for the TDIP and the insurance will be
waived as of the date the total disability began and will continue as
long as the insured is totally disabled.

\(2\) TDIP authorized by the Amendment of July 3, 1930, to Section 311
of the WWI Veterans Act of 1924 (38 U.S.C. 748). This provision is still
available to eligible applicants and provides a monthly disability
income of \$5.75 for each \$1,000 of insurance. These disability income
payments are payable if the insured becomes totally disabled before his
or her 65th birthday and is continuously so disabled for a period of 4
consecutive months or more. The 4-month period may extend beyond the
65th birthday. When an insured has been receiving monthly income from
TDIP and from TPD and recovers, the insurance will be rerated to a
reduced amount but the TDIP will not be reduced. Therefore, under these
conditions, the TDIP amount may be larger than the insurance amount on
the rerated policy.

\(a\) Monthly Payments-The monthly disability income payments commence
as of the first day of the 5th consecutive month (not calendar month) of
continuous total disability.

EXAMPLE: Total disability occurred January 17. Benefits begin May 17,
not May 1. Benefit payments will continue as long as the total
disability exists and they will not reduce the face amount of the
insurance.

\(b\) Waiver of Premiums-Premiums for the insurance and the TDIP will be
waived beginning with the first monthly premium falling due after the
monthly disability income becomes payable and will continue as long as
such monthly income is paid.

\(3\) Application for Benefits-The insured must submit an application
for total disability benefits and must file required proof of such
disability while flu TDIP is in force, or within 1 year after the
provision has ceased

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December 22, I978 M29-1, Part I\
Change 8

to be in effect. \[Application\] for TDIP benefits should \[be made on\]
VA Form 29-357, Claim for Disability Insurance Benefits. \[ \] Total
disability must have started after the date of application for TDIP, or
the effective date of the provision, whichever is later. If the insured
dies without filing an application and it is determined that the
insured\'s failure to file such an application was due to circumstances
beyond his or her control, the application and required proof may be
filed by the beneficiary within I year after the death of the insured.
Any monthly income payments due the insured because of total disability,
and not paid during his or her lifetime, will be paid to the beneficiary
in a lump sum, without interest.

\(4\) Payment of TDIP Benefits and Total Permanent Disability
Benefits-The payment of monthly benefits under the TDIP may be
concurrent with or independent of the insured\'s right to receive TPD
benefits under the policy. The payment of TPD benefits under the policy
will not reduce the amount of the monthly payments under the TDIP, nor
will the monthly income payments under the TDIP reduce the amount of
monthly installments payable for TPD under the policy.

16.06 PAYMENT OF TDIP PREMIUMS

a\. NSLI Premium Payments

\(l\) \$5 Age 60 TDIP-Premiums for this provision are payable to the
anniversary date of the policy nearest the insured\'s 60th birthday, or
until the end of the premium-paying period of the policy, if earlier.

\(2\) \$10 Age 60 TDIP-Premiums for this provision are payable through
the month in which the insured attains age 60, or until the end of the
premium-paying period of the policy, if earlier.

\(3\) \$10 Age 65 TDIP-Premiums for this provision are payable either to
the insured\'s 65th birthday, or to the end of the premium-paying period
on the basic policy, whichever is earlier. In the case of
limited-payment life policies, premiums may be paid either to (a) the
end of the premium-paying period of the basic policy if this occurs
before the 65th birthday or, at the option of the insured, to (b) the
insured\'s 65th birthday. Except for J-JR-JS insurance, when a policy is
paid-up and the TDIP is added, premiums for the provision may be paid
until the insured reaches his or her 65th birthday or they may be paid
in a one-sum payment. Under the J-JR-JS program, the additional premium
for the TDIP rider is payable either to the insured\'s 65th birthday, or
to the end of the premium-paying period of the policy, whichever is
earlier.

b\. USGLI Premium Payments

\(1\) TDIP Issued Prior to July 3, 1930. Premiums for the benefit, when
attached to Ordinary Life, 20-Payment Life, 30-Payment Life, and 5-Year
Convertible Term policies, are payable throughout the life of the
policy, irrespective of the period during which premiums are required on
the insurance contract. Premiums for this benefit, when attached to an
endowment policy, are payable to the maturity date of the policy.

\(2\) TDIP Issued on or After July 3, 1930

\(a\) Premiums for the provision are payable to the end of the
premium-paying period for the insurance or to age 65, whichever is
earlier, in the following cases:

l\. 20-Payment Life policy and the provision have the same effective
date.

2\. 30-Payment Life policy and the provision have the same effective
date.

3\. Any endowment policy with the provision.

\(b\) Premiums are payable to age 65 in the following cases:

l\. 20-Payment Life policy and the provision have different effective
dates.

[2]{.underline}. 30-Payment Life policy and the provision have different
effective dates.

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M29-l, Part I December 22, I978

Change 8

3\. 5-Year LPT policy with the provision.

4\. Whole Life (745) policy with the provision.

5\. Ordinary Life policy with the provision.

6\. Reduced paid-up policy with the provision.

16.07 PREMIUM RATES

a\. TDIP Premiums for NSLI

\(1\) VA Pamphlet 29-23 \[ \] provides premium rates for the \$10 age 65
TDIP, \$10 age 60 TDIP and \$5 age 60 TDIP (ND). \[The TDIP premium
rates on term riders due prior to October I970 will be obtained from the
local Actuarial Staff.\]

\(2\) Premiums for \$5 age 60 TDIP (HD) riders \[will be furnished by
the local Actuarial Staff.\]

b\. TDIP Premiums for USGLI

\(1\) When the TDIP and the insurance have the same effective date,
premiums for the provision may be obtained from VA Pamphlet 9-2.

\(2\) When the TDIP effective date is later than the effective date of
the insurance the premium for the provision must be calculated by the
local Actuarial Staff.

16.08 REQUIREMENTS FOR ADDING AND EXCHANGING TDlP

a\. Application. Application for the TDIP should be made on forms
prescribed by the VA, whenever possible. However, any statement in
writing over the signature of the insured giving the essential
information, together with evidence of good health, will be considered
as a qualifying application. The prescribed forms are:

\(1\) VA Form 29-I 606, Application for Total Disability Income
Provision (Medical), for all NSLI applicants age 41 (more than 6 months
after their 40th birthday) and over for the \$10 age 65 rider. This form
should also be used by an applicant age 41 and over for exchange of a
\$5 age 60 ND rider; and for exchange of a \$5 age 60 HD rider,
regardless of age, for the \$10 age 65 TDIP; and by all applicants for
USGLI TDIP.

\(2\) VA Form 29-1606a, Application for Total Disability Income
Provision (Nonmedical), for NSLI applicants age 40 (within 6 months
after their 40th birthday) and under. This form is also to be used by an
applicant age 40 and under to exchange a \$5 age 60 ND rider for the
\$10 age 65 TDIP. A medical examination will not be required for these
insureds unless there is a medical history, or a condition exists which
may be questionable for disability insurance purposes.

\(3\) VA Form 29467a, Application for Exchange of Total Disability
Income Provision, for those NSLI policyholders who want to exchange
their \$10 age 60 TDIP for the \$10 age 65 TDIP. No evidence of good
health is required, but the applicant may not be totally disabled and
the exchange must be made before his or her 55th birthday.

b\. Premiums. Payment of the first monthly premium for the TDIP must
accompany the application, or be of record.

16.09 TERMINATION OF TDIP

The protection afforded by TDIP will cease under any of the following
conditions:

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August 3l, 1971 M29-1, Part I\
Change 2

used by an applicant age 41 and over for exchange of a \$5 age 60 ND
rider and\] for exchange ()f a S5 age 60 I HD rider, regardless of age,
for (the\] \$10 age 65 TDlP and \[by\] all applicants for USGLI TDIP.

\(2\) VA form 29-1606a, Application for Total Disability income
Provision (Nonmedical) for NSLI applicants age 40 \[(within 6 months
after their 40th birthday)\] and under. (This form is also to be used by
an applicant age 40 arid under to exchange a \$5 age 60 ND rider for the
\$10 age 65 TDIP.\] A medical examination will riot be required for
these insureds unless there is a medical history, or a condition
(exists\] which may be questionable for disability insurance purposes.

\(3\) VA Form 29-467a, Application for Exchange of Total Disability
Income Provision, for those NSLI policyholders who want to exchange
their \$10 age 60 TDlP for the \$10 age 65 TDIP. No evidence of good
health is required but the applicant may not be totally disabled and the
exchange must be made before his 55th birthday.

16-6a

December 22, l978 M29-1, Part l\
. Change 8

a\. Insured attains age specified in rider and is not totally disabled.

b\. Basic insurance policy lapses.

c\. TDIP rider lapses.

d\. Cancellation requested by insured.

\(1\) The effective date of change for the cancellation will be the due
date of the premium for the premium month in which the request was
submitted, if the total disability premium for that month has not been
paid. If the premium for that month has been paid, the effective date of
change will be the next premium due date.

\(2\) Total disability premiums paid and earned prior to the effective
date of change for the cancellation are not subject to refund.

e\. Five-year LPT policy expires.

f\. Policy matures as an endowment and insured is not totally disabled.

g\. Policy surrendered for cash or extended insurance.

h\. Policy surrendered for paid-up insurance of less than \$I,000.

l\. Death of insured.

j\. VA makes a determination of fraud by the insured in the application
for the insurance or the TDIP.

**16.10 REINSTATEMENT OF TDIP**

a\. TDIP attached to a lapsed policy may be reinstated with the policy
if the insured meets the requirements and submits the required proof of
good health.

b\. Normally, an applicant who meets the health requirements to
reinstate lapsed insurance also meets the health requirements for the
TDIP. However, a lapsed policy in force under extended term insurance
may be reinstated without a health statement or other medical evidence
if reinstatement is made not less than 5 years prior to the date such
extended insurance would expire. In any case in which the extended term
insurance under an endowment policy provides protection to the end of
the endowment period, reinstatement may be made without meeting the
requirements of good health. These rules apply to USGLI and NSLI
programs but on J-JR-JS policies, application for reinstatement must
also be made within 5 years from the date of lapse. While the
requirements of good health are waived in reinstating the insurance on
these cases, the applicant must meet the requirements of good health to
reinstate the TDIP that was in force on the date of lapse.

c\. On an NSLI policy that has lapsed with a \$5 age 60 TDIP or a \$I0
age 60 TDIP, upon reinstatement of the insurance the insured may, if he
or she has not reached his or her 55th birthday, reinstate and change
the provision to \$10 age 65 TDIP.

d\. If the TDIP was in force at the time a permanent plan policy was
surrendered for its cash value while the insured was in active service,
it may be reinstated or replaced at the same time and under the same
conditions as provided in 38 U.S.C. 781, for reinstatement or
replacement of the policy to which it was attached. Reinstatement or
replacement shall not be denied if the insured became totally disabled
prior to the date of \[ \] application. If the applicant is totally
disabled at the time of application for reinstatement or replacement and
such disability had existed for less than 6 consecutive months on NSLI,
or Less than 4 consecutive months on USGLI, benefit payments will
commence the first day of the 7th consecutive month on NSLI, or 5th
consecutive month on USGLI. If such disability had existed for at least
6 consecutive months on NSLI, or 4 consecutive months on USGLI, benefit
payments will commence on the first monthly anniversary date of total
disability on or subsequent to the effective day of reinstatement or
replacement but in no event more than 6 months prior to receipt

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M-29-l, Part l December 22, l978

Change 8

of required proof. The TDIP will be issued under the same terms and
conditions and in an amount which does not exceed the TDIP which was
attached to the permanent plan surrendered.

e\. When 5LPT insurance with TDIP has lapsed and the insured wishes to
reinstate, he or she must submit the required proof of good health. He
or she must also submit two monthly insurance premiums to reinstate the
insurance and two monthly TDIP premiums to reinstate the provision.

16.11 MEDICAL EXAMINATIONS FOR TDIP

a\. Except as provided in subparagraph b below, when a physical
examination is required in connection with an application for, or
reinstatement of TDIP, such examination may be made by a medical officer
of the United States Army, Navy, Air Force, or Public Health Service, or
it may be made free of charge by a full- or part-time salaried
physician, \[or any individual authorized by the VA to perform such
examinations at a VA facility.\] Such examination may also be made at
the applicant\'s own expense, by a physician duly licensed for the
practice of medicine by a State, possession of the United States,
Commonwealth of Puerto Rico, or the District of Columbia, or by a duly
licensed osteopathic physician who is a graduate of a recognized and
approved college of osteopathy and who is listed in the current
directory of the American Osteopathic Association. Such examination may
not be made by a physician \[or an individual\] who is related to the
applicant by blood or marriage or associated with the \[veteran\] in
business.

b\. A physical examination required in connection with an application
for TDIP to be added to J insurance must be made at the applicant\'s own
expense by a physician duly licensed for the practice of medicine by a
State, possession of the United States, Commonwealth of Puerto Rico, or
the District of Columbia, or by a duly licensed osteopathic physician
who is a graduate of a recognized and approved college of osteopathy and
who is listed in the current directory of the American Osteopathic
Association. Such examination may not be made by a physician \[or an
individual\] who is related to the applicant by blood or marriage, or
associated with him or her in business. However, the facilities of the
VA may be used for a physical examination in connection with
reinstatement of J-JR-JS insurance of TDIP attached thereto.

16.12 GRACE PERIOD

Upon termination of a TDIP award the insured will be allowed a grace
period of 31 days from the due date of the first premium payable after
such termination or 3 I days from the date of notice mailed to the
insured\'s last address of record, advising him of the termination of
the award and the amount and due date of the first premium payable,
whichever is the later date. If the premiums are not paid within the 31
days, the insurance policy and the TDIP shall lapse in accordance with
the terms and conditions of the policy and the provision. The notice
sent to the insured shall be by registered mail or by certified mail.
The failure of the insured to furnish a correct current address where
mail will reach him or her promptly shall not be grounds for an
extension of time.

16.13 CONVERSION AND TDIP

a\. When an application for conversion and an application for TDIP,
including proof of good health, are received at the same time, and the
applicant requests the conversion be effective as of a future date
within 120 days of the application and the TDIP be issued on the
permanent plan, action will be taken to issue the TDlP with a current
effective date on the term insurance. The insured will be informed of
the action. He or she will also be informed of the additional premium to
be remitted to keep the TDIP in force on the term insurance, and will be
told that the application for TDIP will have to be acted on within
31days or be disapproved. If the TDIP is to be effective as of a future
date, a new application will have to be submitted at that time. If the
insured does not agree with the action taken, the TDIP on the term
insurance will be canceled and any money applied to pay premiums on the
rider will be refunded.

b\. NationaI Service Life Insurance. When term insurance with TDIP-age
65 is converted and the TDIP was issued or last renewed at the rate for
age 54 or under, the TDIP is processed in the usual way; that is the
premium for the rider on the permanent plan is the rate for a new issue
of the permanent plan TDIP-age 65 at the insured\'s age on the date the
conversion is effected. The effective date will be as of the effectived
date of conversion.

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October l, l973 M29-l, Part I\
Change 5

days of the application and the TDIP be issued on the permanent plan,
action will be taken to issue the TDIP with a current effective date on
the term insurance. The insured will be informed of our action. He will
also be informed of the additional premium to be remitted to keep the
TDIP in force on the term insurance. He will be told that the
application for TDIP had to be acted on within 31 days or be
disapproved. If the TDIP is to be effective as of a future date a new
application will have to be submitted at that time. If the insured does
not agree

16-8a

December 22, l978 M29-l, Part l\
Change 8

However, when a 5-LPT policy with TDIP-age 65, issued or renewed at age
55 or older, is converted with the premium for the permanent plan rider
scheduled for payment to age 65, the premium rate for the rider will be
the same on the permanent plan as it was on the term policy. When a
5-LPT policy with TDIP-age 65, issued or renewed at age 55 or older, is
converted with the premium for the permanent plan rider scheduled for
payment to age 64 or under, the premium rate will be furnished by the
Chief Actuary (299A). Also, if the term TDlP premium rate is for age 55
or over and was obtained from a source other than VA Pamphlet \[ \]
29-23, the case will be sent to the Chief Actuary (299A) for computation
of the TDIP premium rate on the converted contract.

\[b. When term insurance with TDIP-age 60 is converted and the TDIP was
last renewed at the rate for age 54 or under, the TDIP is processed in
the usual way; that is, the premium for the rider will be the rate for
the TDIP- age 60 at the insured\'s age on the date the conversion is
effected. The effective date will be as of the effective date of
conversion. However, when a 5-LPT with TDIP-age 60 renewed at age 55 or
older is converted, the TDIP premium rate for the permanent plan rider
will be the same as it was on the term policy.\]

c\. United States Government Life Insurance. When term insurance with
TDIP is converted and the TDIP is continued on the permanent plan, the
term TDIP will not be terminated. If the permanent plan is ordinary
life, the rider will not be changed. It will have the original effective
date and premium. On the other available permanent plans, the rider will
have the original effective date but a new premium will be payable. On
current conversion, the effective date of the TDIP will be earlier than
the effective date of the permanent plan policy on which it is a rider.

16.14 REDUCTlON AND TDIP

a\. When a policy with TDIP is reduced in amount, the effective date and
age on the TDIP will not change.

b\. The amount of the TDIP premium will be at the same rate as that on
the original contract and will be adjusted in proportion to the amount
of TDIP continued.

16.15 CHANGE OF PLAN AND TDlP

a\. When a permanent plan with TDIP is changed to another plan, the
effective date of the rider will not be changed. In most cases, there
will be an adjustment in TDIP premiums from the effective date of the
rider to the date of change. This adjustment must be paid when the
change is made. Thereafter, the rider will have a new premium.

b\. After limited-payment life contracts become paid-up by payment of
all the required premiums, the insured may change the plan to one with a
higher reserve under the USGLI program and to a higher or lower reserve
plan under the NSLI programs, provided all other requirements are met.
Also, if the paid-up limited-payment life policy had a TDIP attached
which was also paid-up when the plan was changed, the TDIP will be
continued on the new plan as a fully paid-up rider.

16.16 CHANGE OF PREMIUM-PAYMENT PERIOD

a\. When an insured with a limited-payment life policy, that will be
paid-up before his or her 65th birthday, has a TDlP-age 65, on which he
or she is paying premiums to age 65, requests the payment period be
changed so that the rider and the policy will become paid-up at the same
time, the adjustment required is the regular premium shortage
calculation; i.e., the difference in premiums with interest.

b\. When the insured had originally elected to pay the TDIP premiums to
the end of the premium-paying period of the policy and requests the
payment period be changed to end at age 65, the adjustment will be the
regular premium overage calculation; i.e., the difference in premiums
without interest. The request for this change in the payment period of
the rider must be made in the first year of the TDIP-age 65.

l-

M29-1, Part I December 22, l978

Change 8

c\. When the account is a paid-up limited-payment life policy with TDIP
premiums being paid to age 65 and the insured asks to pay the single
premium, the adjustment required is the single premium computed as of
the date the TDIP-age 65 was acquired, with interest to the date of
payment minus the premiums paid on the TDIP- age 65. Interest will not
be allowed on the premiums paid.

d\. When a request is received to pay the single premium rather than to
continue paying the monthly premiums, the insured will be furnished the
information. He or she will also be furnished the amount needed to pay
the monthly premiums in advance to age 65 with a comparison between the
two methods of payment. He or she will be told that, although the single
premium is somewhat less than the amount needed to pay premiums in
advance should total disability or death occur before becoming 65 years
of age, no part of the single premium is refunded. However, when
premiums are paid in advance, any premiums paid beyond the date of total
disability or date of death are refunded.

16.17 RESTORATION OF TDIP-AGE 60

a\. When an insured has a paid-up TDIP-age 60 and exchanges for the
TDIP-age 65 and later lapses the TDIP- age 65 and fails to reinstate,
after normal lapse procedure has been followed and if the insured has
not reached his or her 60th birthday, the TDIP-age 60 will be restored.
Premiums paid on the TDIP-age 65 will not be refunded. The TDIP segment
in the master record will be changed and the insured notified of the
action taken and that he or she now has coverage on the TDIP to age 60.
If the insured meets the requirements, the TDIP-age 65 may be
reinstated.

b\. If, within 90 days after the paid-up TDIP-age 60 is exchanged for
the TDIP-age 65, the insured makes it clear he or she did not understand
the new rider and would not have requested the exchange had he or she
known additional premiums for the TDIP-age 65 were required, the
TDIP-age 60 will be restored and any premiums paid on the TDIP-age 65
refunded. The insured will not be allowed to obtain the TDIP-age 65 at a
later date. The TDIP segment in the master record will be changed and
the insured notified of the action taken and that he or she now has
coverage on the TDIP to age 60.

c\. In either case, the RPO (record printout) will be noted to show the
action taken and will be filed in the insurance folder.

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