VA Life Insurance Programs 

for Veterans and Servicemembers 

Department of Veterans Affairs 

Regional Office and Insurance Center 

Philadelphia, PA 

January 2009 
 

In support of our troops 

 currently serving in 

 Operation Enduring Freedom 

 and 

Operation Iraqi Freedom.
1 

TABLE OF CONTENTS 

I. Insurance Program Mission, Vision and Goals 

Mission And Vision ----------------------------------------------------------- 4 

Goals ---------------------------------------------------------------------------- 5 

II. Program Information

Life Insurance Facts----------------------------------------------------------- 8 

History of VA Life Insurance Programs----------------------------------- 10 

Program Administration ----------------------------------------------------- 12 

III. Program Descriptions

Insurance Highlights --------------------------------------------------------- 14 

United States Government Life Insurance -------------------------------- 15 

National Service Life Insurance -------------------------------------------- 17 

Veterans’ Special Life Insurance ------------------------------------------- 19 

Veterans' Reopened Insurance ---------------------------------------------- 21 

Service-Disabled Veterans Insurance -------------------------------------- 23 

Veterans' Mortgage Life Insurance----------------------------------------- 27 

Servicemembers' Group Life Insurance (SGLI) -------------------------- 30 

SGLI Traumatic Injury Protection Program ------------------------------ 34 

 SGLI Traumatic Injury Year One Review ---------------------- 36 

SGLI Family Coverage ------------------------------------------------------ 40 

Veterans' Group Life Insurance--------------------------------------------- 44 

Servicemembers’ Civil Relief Act------------------------------------------ 49 

IV. Administered Program Policy Provisions

Plans of Insurance ------------------------------------------------------------ 52 

NSLI “V” Term Insurance -------------------------------------------------- 54 

Payment of Premiums-------------------------------------------------------- 57 

Waiver of Premiums --------------------------------------------------------- 58 

Dividend Options ------------------------------------------------------------- 59 

Dividend Hoax --- Don't Believe It ---------------------------------------- 62 

Guaranteed Values ----------------------------------------------------------- 64 

Policy Loans------------------------------------------------------------------- 65 

Conversions ------------------------------------------------------------------- 67 

Paid-Up Additional Insurance ---------------------------------------------- 68 

Annual Insurance Policy Statement ---------------------------------------- 70 

Beneficiary and Option Designations-------------------------------------- 71 

Filing Death Claims ---------------------------------------------------------- 78 

Gratuitous S-DVI ------------------------------------------------------------- 80 

V. How To Contact Us 

Phone Numbers, Fax Numbers, E-mail and Mailing Addresses-------- 82 

 VA Insurance Information Available on the Internet ------------------- 85 

3 

 Insurance Program 

Mission, Vision and 

Goals

I
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

 Visit our Website: www.insurance.va.gov 

4 

Insurance Mission and Vision 

Insurance Program Mission 

VBA’s Insurance program will: 

• provide universally available life insurance benefits to service members 

and their families; 

• provide traumatic injury protection insurance for service members; 

• provide a conversion privilege to either a permanent plan or a renewable 

term insurance policy after a service member’s separation from service; 

• provide life insurance benefits to veterans that may not be available from 

the commercial insurance industry due to lost or impaired insurability 

resulting from military service; 

• provide all benefits and services in an accurate, timely and courteous 

manner and at the lowest achievable administrative cost; 

• provide insurance coverage in reasonable amounts at competitive 

premium rates; and 

• ensure that a competitive, secure rate of return will be earned on 

investments held on behalf of insureds. 

Insurance Program Vision 

VBA’s Insurance program will be an organization that: 

• provides insurance services that are equal or superior to those provided 

by the best commercial insurance companies; 

• provides these services at substantially lower cost than commercial 

companies; 

• provides fast, convenient access for our policyholders and beneficiaries; 

and 

• provides customer communications which are fully explained, clear, 

timely and courteous.
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

 Visit our Website: www.insurance.va.gov 

5 

Administered Insurance Program Goals 

Fiscal Year 2008

*

 Customer Service Goals and Results:

Customer Service Goals For Fiscal Year 2008 Fiscal Year 2008 Actual 

Disbursements (e.g., death claims, loans, etc.) will be 

processed on average within 2.7 workdays. 

1.6 workdays 

Disbursements will be at least 99% accurate. 99.3% accurate 

Toll-free telephone blockage (busy signals) will be 

no more than 2% of call attempts. 

.2% of calls were blocked 

on the first try 

Callers will be put on hold waiting for an insurance 

specialist no more than 20 seconds. 

13 seconds hold time 

Receive high veterans’ satisfaction ratings on at least 

95% of services delivered. 

95.2% of veterans 

surveyed said they were 

satisfied or very satisfied 

Receive low veterans’ satisfaction ratings on no 

more than 2% of veterans’ ratings. 

1.9% of veterans 

surveyed said they were 

unsatisfied or very 

unsatisfied 

*

October 1, 2007 – September 30, 2008 

Fiscal Year 2009

**

 Customer Service Goals:

Customer Service Goals For Fiscal Year 2009 

Disbursements will be processed on average within 

2.5 workdays. 

Disbursements will be at least 99% accurate. 

Abandoned call rate will be no more than 2%. 

Toll-free telephone blockage (busy signals) will be 

no more than 2% of call attempts. 

Callers will be put on hold waiting for an insurance 

specialist no more than 20 seconds.

Receive high veterans’ satisfaction ratings on at least 

95% of services delivered. 

Receive low veterans’ satisfaction ratings on no 

more than 3% of veterans’ ratings. 

Fiscal Year 2009 actuals 

will be available at the 

end of 2009, and will be 

reported in the January 

2010 edition of this 

booklet. 

**October 1, 2008 – September 30, 2009 

7

Program Information
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

 Visit our Website: www.insurance.va.gov 

8 

Life Insurance Facts 

What Is Life Insurance? 

Life insurance provides protection against financial loss resulting from death. It is an insurance 

company's promise to pay a beneficiary a specific amount of money when an insured dies in exchange 

for timely payment of premiums. 

What Is It Intended To Do? 

Life insurance offers security in the event of the insured’s death. Life insurance offers financial 

protection to survivors. It provides dependents with the necessary funds to settle financial obligations 

and to cover the loss of income created by the insured’s death. Life insurance policies are usually 

purchased with a specific intention in mind - to protect a mortgage or an estate, to provide for 

educational costs, for retirement or for charity, etc. 

Why Is Life Insurance Necessary? 

People carry life insurance for many reasons. Among the most common are to pay off a mortgage, or 

personal debts (car loan, credit cards...), educational costs for young children, for beneficiaries to be 

able to maintain their current standard of living, for child care, for immediate financial needs, and 

medical or funeral costs. 

How Might Life Insurance Needs Change Over Time? 

If an individual has finished raising their family, has paid off their mortgage and no longer has major 

financial obligations, then their life insurance needs will be lower than when they were younger. An 

individual may choose to no longer carry their insurance or to reduce their coverage amount to a level 

just sufficient to ensure that their survivors have enough money to pay final expenses (burial, medical, 

estate taxes...). 

How Does Life Insurance Work? 

All aspects of life involve risk, e.g., fire, theft, auto accidents, injury. Insurance provides a means of 

transferring the financial consequences of certain risks from the individual to an insurance company. 

When an individual buys life insurance, they are grouped together with other people who are similar in 

age, sex, and health. Actuaries calculate how many people in each group are likely to die in a period 

of time. The more deaths there are in a group, the more money will be needed to pay death claims, and 

therefore, more money will have to be collected as premiums. Since younger people are less likely to 

die than older people, insurance premiums are generally lower at younger ages. 
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

 Visit our Website: www.insurance.va.gov 

9 

Each year, the insured pays the insurance company for their insurance policy. This money is called a 

premium. The insured also informs the insurance company who should get the insurance money if 

they (the insured) die. This is a called designating a beneficiary. If the insured dies while their policy 

is active, the insurance company will pay the beneficiaries the insurance money. Insurance companies 

can do this because only a small number of people die each year, while many more people pay them 

premiums. The “risk” of death is spread out among many people in order to prevent a financial loss to 

the beneficiaries of the few who will die. 

What Is An Actuary? 

An actuary is a person who is professionally trained in the technical aspects of insurance, particularly 

in the mathematics of insurance, such as calculating premiums, dividends, and proper policy reserves. 

Actuaries assist in estimating the cost of implementing new benefits or benefit enhancements and also 

conduct statistical and financial studies. Actuaries in the U.S. achieve professional status by passing a 

set of examinations given by the Society of Actuaries (SOA). 

Where Does The VA Insurance Program Get Its Actuarial Expertise? 

The Insurance Actuarial Staff is located at the Insurance Center in Philadelphia. The Actuarial Staff is 

responsible for the financial management and actuarial soundness of the life insurance programs that 

are administered and supervised by the Department of Veterans Affairs Regional Office and Insurance 

Center. Among the staff’s responsibilities are the determination of premiums and dividends, 

determining policy values, developing mortality and insurance experience studies, setting appropriate 

reserve levels and financial reporting. The Actuarial Staff is also responsible for the evaluation of the 

financial impact of legislative proposals that will affect the life insurance programs. 

The Actuarial Staff is responsible for the preparation of financial statements for each of the VA life 

insurance programs. These statements present the financial position of each of the life insurance 

programs. Each year, independent auditors audit these statements to ensure that the statements 

accurately reflect the financial position of the programs. This is important because a favorable audit 

opinion means that the life insurance programs are able to meet their obligations to policyholders and 

that all policyholders are being treated equitably. For every fiscal year since 1992, the VA insurance 

program has received an unqualified audit opinion. This means that the independent auditors have 

determined that the financial statements accurately reflect the financial position of the insurance 

programs. 
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

 Visit our Website: www.insurance.va.gov 

10 

History of VA Life Insurance Programs 

War Risk Insurance Act (1914) 

The United States Government first became involved in the insurance business when war broke out 

in Europe in 1914. Although President Wilson declared America neutral, commercial merchant 

ships supplied war materials to the allies in the war against Germany. Owners of these merchant 

ships could not get marine insurance from commercial companies. Congress passed the War Risk 

Insurance Act on September 2, 1914, providing marine insurance protection for merchant ships 

supplying the allies. 

America entered the war against Germany in April 1917. Life insurance issued by commercial life 

insurers either excluded protection against the extra hazards of war, or if such protection was 

included, the premium rates were much higher than the normal rate. The War Risk Insurance Act 

was amended on June 12, 1917, to cover merchant marine personnel. The Act was again amended 

on October 6, 1917, authorizing for the first time issuance of government life insurance to 

members of the armed forces. Over 4 million policies were issued during World War I. 

United States Government Life Insurance (1919-1951) 

The United States Government Life Insurance program (USGLI) was established in 1919 and 

replaced War Risk policies. Individuals could keep this coverage after separation from service. 

National Service Life Insurance (1940-1951) 

The National Service Life Insurance program (NSLI) was established in 1940 to meet the 

insurance needs of World War II military personnel and veterans. Like USGLI coverage, insureds 

could keep their NSLI coverage after discharge from service. 

Servicemen’s Indemnity Insurance (1951-1956) 

In 1951, NSLI was replaced by Servicemen’s Indemnity Insurance, which automatically covered 

active duty service members for $10,000 at no cost to the individual. Service members remained 

covered for 120 days after their discharge. 

Veterans' Special Life Insurance (1951-1956) 

Discharged service members who had Servicemen’s Indemnity Insurance could replace their 

coverage with Veterans' Special Life Insurance (VSLI). VSLI was established in 1951 to meet the 

insurance needs of veterans who served during the Korean Conflict, and the post Korean period 

through January 1, 1957. 
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

 Visit our Website: www.insurance.va.gov 

11 

In the early 1950's, commercial life insurance companies began to view the government's life 

insurance programs for veterans as competition for their business and began lobbying Congress to 

remove the government from the life insurance business. As a result, the Veterans’ Special Life 

Insurance program was closed to new issues at the end of 1956. 

Service-Disabled Veterans Insurance (1951-Present) 

The only new insurance issued between 1957 and 1965 to either service members or veterans was 

Service-Disabled Veterans Insurance (S-DVI). This insurance was (and still is) available to 

veterans with a service-connected disability. 

Veterans' Reopened Insurance (1965-1966) 

Veterans' Reopened Insurance (VRI) was opened in 1965 to provide coverage for certain classes of 

disabled veterans, mainly from World War II and the Korean Conflict. Members who had dropped 

their NSLI or VSLI coverage and who had a service-connected disability, or a non-service 

connected disability that made them uninsurable, had a one-year period to apply for $10,000 of 

coverage. 

Servicemembers' Group Life Insurance (1965-Present) 

To meet the insurance needs of Vietnam Era service members, the government entered into a 

cooperative effort with the private insurance industry. In 1965, the Servicemembers' Group Life 

Insurance (SGLI) program was established. This program provides low-cost term insurance 

protection to service members through a group policy issued by a commercial life insurance 

company. Under this policy, the government agrees to pay the claim costs resulting from the extra 

hazards of service. All other costs of the program are covered by the premiums deducted from 

service members’ pay. 

The SGLI program was expanded in 2001 to provide Family Group Life Insurance (FSGLI) and 

again in 2005 to provide Traumatic Injury Protection Insurance (TSGLI). 

Veterans' Group Life Insurance (1974-Present) 

In 1974, the Veterans' Group Life Insurance (VGLI) program became available to veterans, 

providing term insurance protection after separation from service for those who had SGLI while in 

the service. 

Veterans' Mortgage Life Insurance (1971-Present) 

This program was established to provide mortgage protection life insurance to severely disabled 

veterans who have received grants for the purchase of specially-adapted housing. 
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

 Visit our Website: www.insurance.va.gov 

12 

Program Administration 

The Department Of Veterans Affairs Insurance Center 

The Department of Veterans Affairs Regional Office and Insurance Center (VAROIC) in 

Philadelphia manages the government life insurance programs. For the six insurance programs that 

are administered directly by VA, the Insurance Center is responsible for: 

• collecting premiums 

• processing policy actions (change of address, loans, cash surrenders, etc.) 

• paying death and disability claims 

• offering toll-free telephone service 

• performing all actuarial functions 

• formulating policy, plans and procedures and 

• evaluating performance of the insurance programs. 

• Note: Designing, developing, installing and maintaining application software, which 

supports the life insurance programs, is performed by the Insurance Products Division of 

the Office of Information and Technology, which is co-located in the Philadelphia 

VAROIC. 

The Insurance Center also supervises the Servicemembers’ and Veterans’ Group Life Insurance 

(SGLI/VGLI) programs. The SGLI/VGLI group life insurance policy is issued by Prudential 

Insurance Company of America. SGLI and VGLI provide coverage for members of the uniformed 

services (including family members), reservists and post-Vietnam veterans. The Office of 

Servicemembers' Group Life Insurance (OSGLI) in Roseland, New Jersey is an administrative 

office created by Prudential to administer the day-to-day operations of SGLI and VGLI. 

Size Of VA Insurance Programs 

According to the most recent data available (calendar year 2007), VA was the 6th largest insurer

in the country with 7.1 million individuals insured for $1.32 trillion. This figure includes the 

coverage provided under the SGLI, VGLI and TSGLI programs. 

1.16

1.27

1.32

1.37

1.48

1.56

2.58

4.94

0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5

Dollars in Trillions

Lincoln Financial Group

A IG Lif e Group

V A

IN G U SA Lif e Group

Swiss R einsurance Group

A egon U SA Group

Prud ent ial o f A merica Gro up

M et ropolit an Lif e

2007 RANKINGS BY TOTAL LIFE INSURANCE INFORCE
13

Program Descriptions

• Administered Programs 

° United States Government Life Insurance 

° National Service Life Insurance 

° Veterans’ Special Life Insurance 

° Veterans’ Reopened Life Insurance 

° Service-Disabled Veterans Insurance 

° Veterans' Mortgage Life Insurance 

• Supervised Programs 

° Servicemembers' Group Life Insurance 

3⁄4 Service Member Life Insurance 

3⁄4 Traumatic Injury Protection 

3⁄4 Family Life Insurance 

° Veterans' Group Life Insurance 

III
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

 Visit our Website: www.insurance.va.gov 

14 

INSURANCE HIGHLIGHTS 

(As of September 30, 2008) 

Program Policy 

Prefix

Open Era Issue 

Dates

Number of 

Individuals 

Insured 

Average 

Age

Deaths 

per 1,000

For More 

Information 

See Page 

ADMINISTERED PROGRAMS 

USGLI K January 1, 1919 to 

April 24, 1951 5,532 90.1 158.4 15 

NSLI V October 8, 1940 to 

April 24, 1951 801,860 82.7 82.0 17 

H August 1, 1946 to 

December 31, 1949 N/A N/A N/A 18 

VSLI RS, W April 25, 1951 to 

December 31, 1956 166,984 76.5 35.9 19 

VRI J, JR, JS May 1, 1965 to May 

2, 1966 34,069 83.6 94.1 21 

S-DVI RH April 25, 1951 to 

Present 168,349 60.0 34.9 23 

VMLI N/A August 11, 1971 to 

Present 2,309 56.1 60.7 27 

SUPERVISED PROGRAMS 

SGLI

Member N/A September 29, 1965 to 

Present 2,356,500 29.9 0.96 30 

Spouse N/A November 1, 2001 to 

Present 1,077,000 33.0 0.72 40 

Child N/A November 1, 2001 to 

Present 2,027,000 8.7 0.51 40 

TSGLI N/A December 1, 2005 to 

Present 2,262,500 29.9 N/A 34 

VGLI N/A August 1, 1974 to 

Present 431,281 46.7 4.41 44 

TOTAL NUMBER OF INDIVIDUALS INSURED 7,070,884*

TOTAL FACE AMOUNT OF INSURANCE $1,313,773,303,072

*

TSGLI is a traumatic injury protection rider under SGLI and is, therefore, already included in the total number of 

individuals insured. 
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

 Visit our Website: www.insurance.va.gov 

15 

United States Government Life Insurance - USGLI 

 (Policies Prefixed by K) 

History Of The USGLI Program 

The United States Government Life Insurance program was the government's first venture into life 

insurance. During WWI, the U.S. provided Marine Insurance to protect the interests of ship 

owners and merchants who were providing supplies to the allies in Europe. USGLI was the natural 

outgrowth of this Marine Insurance. The program was established to meet the needs of 

World War I veterans, but remained open to service members and veterans with service before 

October 8, 1940. The government became a self-insurer since private insurance companies were 

unwilling to assume the unpredictable risks associated with a war. By establishing this program, 

Congress intended to avoid the financial burden imposed on the government by the pension 

programs that were established after previous wars. The government became the largest life 

insurer in the U.S. with the coverage provided by this program. 

Premiums Are No Longer Paid 

The USGLI program operates from a strong financial position. 

• We currently have $31.5 million in trust fund reserves set aside. 

• These funds are invested in U.S. Treasury Securities and policy loans. The average rate of 

return for FY 2008 was 5.4%. 

• Because of the strong financial position of this program, all USGLI policies were declared 

paid-up as of January 1, 1983. We no longer collect premiums from policyholders in this 

program.

Dividends Paid To USGLI Policyholders 

Dividends are paid on all but a few USGLI policies. 

• Reserves set aside in the trust funds continue to earn interest each year in excess of what is 

needed to pay future claims, allowing us to pay dividends. 

• In 2009, we will pay approximately $725,000 in dividends to USGLI policyholders. This is 

an average of $136 per veteran. 
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

 Visit our Website: www.insurance.va.gov 

16 

Disability Provisions 

USGLI policies (except Special Endowment at Age 96) contain a provision that matures the policy 

upon the insured's total permanent disability. Under this provision: 

• Proceeds are payable in installments of $5.75 monthly per $1,000 of insurance, as long as 

the insured remains totally and permanently disabled, with 240 payments guaranteed. 

• If the insured dies before all guaranteed installments have been paid, the balance is payable 

to his or her named beneficiary. 

• No additional premium is charged. 

• There is no limit as to the age at which a disability may occur. 

As of September 30, 2008, 25 USGLI policyholders were receiving monthly payments under this 

provision. 

USGLI Historical Information

Opened _________________________________________________ January 1, 1919 

Closed (Non-WWI Veterans) _____________________________ October 8, 1940 

Closed (WWI Veterans) __________________________________ April 24, 1951 

Number of Policies Issued (new issues and conversions

 from War Risk Insurance) ____________________________ 1,153,000 

Face Value of Policies Issued _____________________________ $4,857,600,000 

Average Face Value of Policies Issued _____________________ $4,213 

USGLI Current Information

Number of Veterans Insured ______________________________ 5,532 

Total Amount of Insurance in Force _______________________ $17,020,142 

Average Coverage Per Veteran ____________________________ $3,077 

Average Attained Age ____________________________________ 90.1 

Average Annual Death Rate ______________________________ 158.4 per 1,000 

Total Investments of the USGLI Fund _____________________ $31,506,841 

Average Rate of Return on Investments FY 2008 ___________ 5.4% 

Total Disbursements FY 2008 ____________________________ $6,375,527 

Dividend Distribution 2009 _______________________________ $725,000 

Average 2009 Dividend Per Veteran _______________________ $136 
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

 Visit our Website: www.insurance.va.gov 

17 

National Service Life Insurance - NSLI 

(Policies Prefixed by V or H) 

History Of The NSLI Program 

Most of the policyholders who have insurance under this program served during World War II. 

The program opened October 8, 1940, when it became clear that large-scale military inductions 

were imminent. Over 22 million policies were issued under the NSLI program. The majority of 

policies VA administers directly are NSLI policies. This program remained open until April 25, 

1951, when two new programs were established for Korean War service members and veterans. 

The NSLI program provides for: 

• A maximum amount of $10,000 insurance coverage; 

• Individual policies issued to each policyholder; 

• Certain contractual rights whereby a policyholder can bring a suit against VA in a U.S. 

District Court. Administrative decisions of the Board of Veterans Appeals can be appealed 

to the U.S. Court of Appeals for Veterans Claims. 

Premium Rates “Capped” For Term Policies 

NSLI “V” term policies can be renewed indefinitely. At the older ages, premium rates increase 

significantly to cover the higher death rates at those ages. Although we continually encouraged 

term policyholders to convert to a permanent plan of insurance (which has fixed premium rates), 

many policyholders retained their term coverage. 

As term policyholders reached their sixties and seventies, they found it difficult to pay the high 

premium rates. This situation received much Congressional interest as policyholders petitioned 

their representatives for financial relief. In 1984, the Insurance Actuarial Staff developed a partial 

solution to the problem by “capping” premium rates at the age 70 rate. This means that a term 

policyholder’s premium will never increase over the age 70 premium rate. 

Effective September 11, 2000, “capped” NSLI term policies receive a termination dividend if a 

policy lapses, or if the policyholder voluntarily cancels their policy. The termination dividend will 

be used to purchase paid-up additional whole life insurance. 

Dividends Paid To NSLI Policyholders 

After the reserve level requirements are determined by the Insurance Actuarial Staff, any surplus 

funds are returned to policyholders as a dividend. 

• In 2009, a total of $243.8 million in dividends will be distributed to NSLI policyholders. 

This is an average dividend of $311 per veteran. 

• The 2009 average dividend is about 0.6% lower than that paid in 2008. 
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

 Visit our Website: www.insurance.va.gov 

18 

Disability Provisions 

All NSLI policies provide for 

• A waiver of premiums at no extra cost if the insured becomes totally disabled for six 

months or longer prior to age 65. 

• An optional Total Disability Income Provision covering disability before age 65, providing 

a monthly income of up to $100 per month, as long as total disability continues. 

"H" Insurance 

“H” policies were issued between August 1, 1946, and December 31, 1949, to veterans with 

service-incurred disabilities. These policies were non-participating. 

On November 11, 1998, the ‘Veterans Programs Enhancement Act of 1998’ (Public Law 105-368) 

was signed into law. Included in the legislation was the merger of "H" policies into the regular 

NSLI "V" policies. Under the Act: 

• All “H” policies were converted to “V” policies effective January 1999. 

• Converted policies now have the same premium rates and policy provisions as "V" policies. 

• These previous “H” policyholders now receive dividends. 

NSLI Historical Information 

Opened __________________________________________________ October 8, 1940 

Closed ___________________________________________________ April 24, 1951 

Number of Policies Issued ________________________________ 22,177,000 

Face Value of Policies Issued ______________________________ $173,765,000,000 

Average Face Value of Policies Issued _____________________ $7,835 

NSLI Current Information 

Number of Veterans with 5-year Term Policies _____________ 188,440 

Number of Veterans with Permanent Plan Policies __________ 613,420 

Total Amount of Insurance in Force _______________________ $10,651,255,978 

Average Coverage Per Veteran ____________________________ $13,283 

Average Attained Age ____________________________________ 82.7 

Average Annual Death Rate _______________________________ 82.0 per 1,000 

Total Investments of the NSLI Fund _______________________ $9,816,336,132 

Average Rate of Return on Investments FY 2008 ___________ 5.8% 

Total Disbursements FY 2008 _____________________________ $1,367,409,208 

Dividend Distribution 2009 _______________________________ $243,800,000 

Average 2009 Dividend Per Veteran _______________________ $311 
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

 Visit our Website: www.insurance.va.gov 

19 

Veterans’ Special Life Insurance - VSLI 

 (Policies Prefixed by RS or W) 

History Of The VSLI Program 

This insurance program was established in 1951 to meet the insurance needs of veterans who 

served during the Korean Conflict, and the post-Korean period through January 1, 1957. During 

this period, all service members on active duty were covered for $10,000, at no cost, under a 

program known as Servicemen’s Indemnity. They remained covered for 120 days after their 

discharge. The VSLI program allowed these newly discharged service members to apply for 

$10,000 of contract term insurance. Application had to be made during the 120-day period during 

which they remained covered by Servicemen’s Indemnity. It was during this time that 

representatives of the commercial insurance industry began a major lobbying effort to get the 

government out of the insurance business because the programs were viewed as competition. As a 

result, the VSLI program was closed to new issues at the end of 1956, and coverage for individuals 

in the services was terminated. Approximately 800,000 VSLI policies were issued between 1951 

and 1957. 

Features Of “RS” And “W” Policies 

There are two types of VSLI policies: 

RS - five-year level premium term policies: 

• These were the original policies available in this program. 

• RS policies can remain in force as 5-Year Level Premium Term beyond the age of 50. 

• To provide financial relief from the high premium rates at advanced ages, RS term 

premiums were capped at the age 70 renewal rate effective May 1, 1989. This means 

that the annual premium for these policies will not exceed $68.16 per $1,000 of 

coverage. 

• Effective September 11, 2000, "capped" VSLI term policies receive a termination 

dividend if a policy lapses, or if the policyholder voluntarily cancels their policy. The 

termination dividend will be used to purchase paid-up additional whole life insurance. 

W - five-year level premium term policies: 

• A 1959 legislative change permitted RS policyholders to convert to permanent plans or 

to exchange their policies for a special lower premium term policy. These newer 

policies are identified by the prefix W. 

• To avoid W term policyholders from keeping their policies into advanced ages (when 

premiums are very high), these policies had to be converted to permanent plans before 

age 50, or coverage ceased. There are no longer any W term policyholders eligible for 

this conversion. 
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

 Visit our Website: www.insurance.va.gov 

20 

Dividends Paid To VSLI Policyholders 

In 2009, a total of $67.2 million in dividends will be distributed to VSLI policyholders. 

• This is an average dividend of $406 per veteran. 

• The 2009 average dividend is 1.1% higher than that paid in 2008. 

Disability Provisions 

All VSLI policies provide for: 

• A waiver of premiums at no extra cost based on the insured's total disability lasting six 

months or longer and starting before age 65. 

• An optional Total Disability Income Provision covering disability before age 65, providing 

a monthly income of $10 per $1,000 of insurance, was available at an extra cost. 

VSLI Historical Information 

Opened __________________________________________________ April 25, 1951 

Closed __________________________________________________ December 31, 1956 

Number of Policies Issued ________________________________ 803,111 

Face Value of Policies Issued _____________________________ $7,349,178,500 

Average Face Value of Policies Issued _____________________ $9,151 

VSLI Current Information 

Number of Veterans with 5-year Term Policies (RS) ________ 11,853 

Number of Veterans with Permanent Plan Policies (W) ______ 155,131 

Total Amount of Insurance in Force _______________________ $2,348,218,092 

Average Coverage Per Veteran ____________________________ $14,063 

Average Attained Age ____________________________________ 76.5 

Average Annual Death Rate _______________________________ 35.9 per 1,000 

Total Investments of the VSLI Fund _______________________ $2,135,079,238 

Average Rate of Return on Investments FY 2008 ___________ 6.6% 

Total Disbursements FY 2008 _____________________________ $180,015,613 

Dividend Distribution 2009 _______________________________ $67,200,000 

Average 2009 Dividend Per Veteran _______________________ $406 
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

 Visit our Website: www.insurance.va.gov 

21 

Veterans' Reopened Insurance - VRI 

(Policies Prefixed by J, JR, or JS) 

History Of The VRI Program 

In 1964, Congress enacted legislation providing for a limited reopening of NSLI and VSLI. 

Beginning May 1, 1965, veterans who had been eligible to obtain insurance between October 8, 

1940 and January l, 1957, could once again apply for government life insurance. They had one 

year to apply for this “reopened” insurance that was available only to disabled veterans. 

Approximately 228,000 VRI policies were issued. No term insurance policies were issued in this 

program. 

Premium Rates

Premium rates for this insurance depend on the nature and severity of the disability. 

If the disability is: The premium rate: 

Service-connected varies from standard to a maximum of two to three times the standard 

Non-serviceconnected but 

serious 

varies from two to three times the standard to a maximum of $50 per 

month plus the standard monthly premium rate per $1,000 of insurance 

Favorable claim rates and rising interest levels made possible the following premium changes and 

reductions: 

Effective Date VRI Premium Rate Changes 

October 1970 Premium rates were reduced by an average of 18 percent for all policies 

with "J" prefixes (those policies issued at standard rates). 

October 1976 Premium rates were reduced by an average of 22 percent for all "J" 

policies and 34 percent for all "JR" policies. 

October 1977 All premium paying "JS" policies were declared fully paid-up. 

May 1989 

The administrative cost premium of 42 cents a month per policy was 

eliminated. This additional premium was designed to fund the 

administrative costs of the program. However, when the excess earnings 

of the program became sufficient to fund the program costs, the additional 

premium was no longer necessary. 

Dividends Paid To VRI Policyholders 

The VRI program began paying dividends in 1980 in order to more equitably distribute the surplus 

earnings of the program. A total of $8.1 million in dividends will be paid to VRI policyholders in 

2009. 
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

 Visit our Website: www.insurance.va.gov 

22 

Disability Provisions 

VRI policies provide for: 

• A waiver of premium at no extra cost based on the insured's total disability lasting six 

months or longer, and starting prior to age 65. 

• An optional total disability income benefit covering disability occurring before age 65 for 

"J" policyholders. (This is not available on policies prefixed by "JR" or "JS".) Payments 

are made at the rate of $10 monthly per $1,000 of coverage, as long as the insured remains 

totally disabled. 

VRI Historical Information: 

Opened __________________________________________________ May 1, 1965 

Closed ___________________________________________________ May 2, 1966 

Number of Policies Issued ________________________________ 227,882 

Face Value of Policies Issued ______________________________ $1,601,504,500 

Average Face Value of Policies Issued _____________________ $7,028 

VRI Current Information: 

Number of Veterans Insured _________________________ 34,069 

Total Amount of Insurance in Force _______________________ $382,975,710 

Average Coverage Per Veteran ___________________________ $11,241 

Average Attained Age ___________________________________ 83.6 

Average Annual Death Rate ______________________________ 94.1 per 1,000 

Total Investments of the VRI Fund _______________________ $375,132,159 

Average Rate of Return on Investments FY 2008 __________ 6.0% 

Total Disbursements FY 2008 ____________________________ $53,402,191 

Dividend Distribution 2009 ______________________________ $8,100,000 

Average 2009 Dividend Per Veteran ______________________ $244 
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

 Visit our Website: www.insurance.va.gov 

23 

Service-Disabled Veterans Insurance - S-DVI 

(Policies Prefixed by “RH” or “ARH”) 

History Of The S-DVI Program 

In addition to Veterans' Special Life Insurance, which was provided to healthy veterans, the 

Insurance Act of 1951 also established the Service-Disabled Veterans Insurance (S-DVI) program 

for veterans with service-connected disabilities. S-DVI is open to veterans separated from the 

service on or after April 25, 1951, who receive a service-connected disability rating of 0% or 

greater. New policies are still being issued under this program. During fiscal year 2008, 13,016 

new S-DVI policies were issued. 

Eligibility Requirements For S-DVI Insurance (“RH”) 

In order to be eligible for S-DVI, a veteran must have: 

1. received other than a dishonorable discharge. 

2. been released from active duty after April 25, 1951. 

3. received a rating for a new service-connected disability within the last 2 years. 

9 The veteran does not need to have a 100% rating to be eligible. Veterans 

who receive a new rating of even 0% are eligible for the coverage. 

9 The veteran must apply for the insurance within two years from the date 

they are notified that service-connection has been established. 

Eligibility Requirements For Supplemental S-DVI (“Supplemental RH”) 

The Veterans' Benefits Act of 1992, provided for $20,000 of supplemental coverage to S-DVI 

policyholders. Premiums may not be waived on this supplemental coverage. S-DVI 

policyholders are eligible for this supplemental coverage if: 

1. they are eligible for a waiver of premiums on their S-DVI policy due to total disability. 

2. they apply for the coverage within one year from notice of the grant of waiver. 

3. they are under age 65. 

Between December 1992 and September 2008, VA has approved 33,558 applications for 

“supplemental RH”. 
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

 Visit our Website: www.insurance.va.gov 

24 

Gratuitous S-DVI (“ARH”) 

Congress enacted legislation in 1959 to protect veterans who become incompetent from a 

service-connected disability while eligible to apply for S-DVI, but who die before an application is 

filed. 

“ARH” insurance is: 

1. Issued posthumously; 

2. Payable to a preferred class of the veteran's relatives; 

3. Payable in a lump sum only. 

(Conditions for eligibility and payment of gratuitous S-DVI are discussed in greater detail on page 

76)

Premiums For S-DVI Insurance 

To provide financial relief from the high premium rates at advanced ages, "RH" term premiums 

were “capped” at the age 70 renewal rate effective November 1, 2000. This means that the annual 

premium for these policies will not exceed $69.73 per $1,000 of coverage. 

Premiums charged for S-DVI coverage are: 

• Based on the rates a healthy individual would have been charged when the program began 

in 1951. 

• Waived for totally disabled veterans (44% of S-DVI policies are on premium waiver). 

• Insufficient to pay all of the claims because the program insures many veterans with severe 

disabilities. 

• Supplemented on an annual basis by Congressional appropriations. 

There are no reserves or surplus funds in this program. Therefore, dividends are not paid. 

Disability Provisions 

S-DVI policies (except supplemental coverage) provide for a waiver of premiums benefit at no 

extra cost. In order to qualify for this waiver, the insured must incur a total disability that lasts six 

months or longer and starts before age 65. 

Additionally, waiver can still be obtained even if the total disability commenced prior to the 

effective date of the policy, provided that the total disability is service-connected. This latter 

provision is only applicable to S-DVI policies. 

The optional Total Disability Income Provision is not available under this program. 
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

 Visit our Website: www.insurance.va.gov 

25 

Apply for S-DVI Insurance Online 

Veterans can now apply for Service-Disabled Veterans Insurance by going to the VA insurance 

website at www.insurance.va.gov and following the link to “Apply for Service-Disabled Veterans' 

Insurance Online.” The new AutoForm (Automated Form) application will walk the veteran 

through the application step-by-step. The veteran can review different insurance plans and 

calculate premiums. We'll help the veteran determine if they are eligible for this insurance. The 

application can be saved on our secure server if the veteran is not able to complete it in one 

session. The application is submitted electronically via our secure server. The application can also 

be printed and mailed or faxed to us. 

Application Forms 

The forms listed below are to be used in the following situations: 

If the Veteran The Veteran should file

• would like to apply for S-DVI coverage 

• has a service-connected disability and

• is applying for S-DVI within two years of 

the granting of that disability 

VA Form 29-4364 (Application for ServiceDisabled Insurance) 

• has been awarded S-DVI coverage 

• has a total disability that began prior to 

his/her 65th birthday 

• would like to apply for a Waiver of 

Premiums 

VA Form 29-357 (Claim for Disability 

Insurance Benefits) 

• has been awarded S-DVI coverage 

• is receiving a waiver of premiums and

• is under age 65 and within one year of the 

granting of waiver of premiums 

• would like an additional $20,000 in 

coverage (“supplemental RH”) 

VA Form 29-0188 (Application for 

Supplemental Service Disabled (RH) Life 

Insurance) 

To expedite the processing of their application, the veteran should include a copy of the latest 

rating decision if they received it from VA. 
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

 Visit our Website: www.insurance.va.gov 

26 

S-DVI Historical Information 

Opened __________________________________________ April 25, 1951 

Number of Policies Issued ________________________________________________ 480,635 

Face Value of Policies Issued ____________________________________________ $4,662,904,829 

Average Face Value of Policies Issued _______________________________ $9,702 

S-DVI Current Information 

Number of Veterans with 5-year Term Policies __________ 58,123 

Number of Veterans with Permanent Plan Policies _______________ 110,226 

Total Amount of Insurance in Force ___________________________________ $1,965,272,198 

Average Coverage Per Veteran __________________________________________ $11,674 

Average Attained Age ______________________________________________________ 60.0 

Average Annual Death Rate ______________________________________________ 34.9 per 1,000 

Total Disbursements FY 2008 ___________________________________________ $110,583,185 

Percentage of Policies on Premium Waiver _____________ 44% 
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

 Visit our Website: www.insurance.va.gov 

27 

Veterans' Mortgage Life Insurance 

VMLI 

History Of The VMLI Program 

The Veterans’ Mortgage Life Insurance (VMLI) program began in 1971, and is designed to 

provide financial protection to cover eligible veterans' home mortgages in the event of death. In 

the strict sense of the word, this is actually mortgage insurance. VMLI is issued to those severely 

disabled veterans who have received grants for Specially-Adapted Housing from VA. These grants 

are issued to veterans whose movement is substantially impaired because of their disability. 

The maximum amount of VMLI allowed an eligible veteran is $90,000. The insurance is payable 

if the veteran dies before the mortgage is paid off. We will pay the amount of money still owed on 

the mortgage up to $90,000. The insurance is payable only to the mortgage lender.

Eligibility For VMLI 

The insurance is restricted to those veterans who receive grants for the purchase of SpeciallyAdapted Housing under the authority of title 38, US Code, chapter 21. Grants are available to 

veterans who are entitled to compensation for service-connected, permanent and total disabilities 

for one or more of the following conditions: 

1) Loss or loss of use of both legs. 

2) Blindness in both eyes plus the loss or loss of use of one leg. 

3) Loss or loss of use of one leg with residuals of organic disease or injury that affects balance 

or propulsion. 

4) Loss or loss of use of one leg together with the loss or loss of use of one upper extremity 

that affects balance or propulsion. 

On December 6, 2002, Congress passed legislation allowing veterans to retain their VMLI 

coverage past age 70. Previously VMLI coverage ceased when the insured reached age 70. Note:

Coverage cannot be issued after age 69. 

Coverage Amounts 

VMLI coverage decreases as the insured’s mortgage falls below $90,000. This reduced coverage 

cannot be reinstated. For example, if the insured has a $125,000 mortgage on his or her home, 

then: 

• The maximum amount of VMLI insurance coverage is $90,000. 
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

 Visit our Website: www.insurance.va.gov 

28 

• Coverage will remain at $90,000 until the mortgage balance goes below $90,000. Once the 

mortgage balance goes below $90,000, the insurance coverage will decrease at the same 

rate as the mortgage amount. 

• As the mortgage balance decreases below $90,000, the difference between $90,000 and the 

mortgage balance is “used up” and cannot be reinstated for that particular home. 

However, if the home is sold and a new home is purchased, the veteran becomes eligible once 

again for the maximum amount of coverage. 

Payment of VMLI proceeds 

Certain conditions apply to the payment of VMLI benefits: 

• The insurance is payable at the death of the veteran only to the mortgage holder. 

• No insurance is payable if the mortgage is paid off before the death of the insured or if it 

was paid off by other mortgage insurance before the VMLI payment is made. 

∗ This is important to consider if the veteran is thinking of purchasing mortgage 

insurance in addition to VMLI, or if he or she has obtained a mortgage through a 

state veterans program that requires them to enroll in the state’s insurance program 

(California and Oregon have such programs). Some mortgage insurance programs 

will pay the outstanding mortgage balance first and then pay any remaining money 

directly to a named beneficiary. Others, like VMLI, will pay the outstanding 

mortgage balance only to the mortgage company - no further payments are made. 

Therefore, if there is duplicate coverage, a veteran’s next of kin would be 

encouraged to contact VA first for the payment of VMLI benefits and then file a 

claim with other programs. However, there is no guarantee of an additional payment 

even if the VMLI insurance is paid first. 

• If title to the property is shared by the veteran in any ownership other than joint ownership 

(such as tenancy in common, or fractional shares), then the insurance coverage is only for 

the percentage of the title that is in the veteran's own name. 

The insurance will be canceled for any of the following conditions: 

1) The mortgage is paid in full. 

2) Termination of the veteran's ownership of the property securing the loan. 

3) The request of the veteran. 

4) Failure of the veteran to submit required information. 

5) The veteran stops paying the premiums. 

VMLI Premium Rates 

Effective October 1, 2005, VMLI premiums were reduced. VMLI premiums were automatically 

reduced for virtually all VMLI policyholders by an average of 35 percent. 
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

 Visit our Website: www.insurance.va.gov 

29 

VMLI premiums are determined by the insurance age of the veteran, the outstanding balance of the 

mortgage at the time of application, and the remaining length of time the mortgage has to run. 

Veterans who desire insurance will be advised of the required premium when it is determined. 

Premiums must be paid by deduction from the veteran’s monthly compensation or pension 

payments, if the veteran is receiving such payments. If such payments are not being received, the 

veteran may make direct payments on a monthly, quarterly, semiannual, or annual basis, to the 

VA Insurance Center in Philadelphia, Pennsylvania. 

VMLI Program 

Opened __________________________________________ August 11, 1971 

Number of Veterans Covered _____________________________ 2,309 

Total Amount of Insurance in Force _______________________ $164,745,952 

Average Coverage Per Veteran ____________________________ $71,349 

Average Attained Age ____________________________________ 56.1 

Average Annual Death Rate ______________________________ 60.7 per 1,000 
 QUESTIONS? Call OSGLI Toll Free: 1-800-419-1473 

 Visit our Website: www.insurance.va.gov 

30 

Servicemembers' Group Life Insurance 

SGLI 

History Of The SGLI Program 

The Servicemembers' Group Life Insurance (SGLI) program was established in 1965, for Vietnam 

Era service members. SGLI is supervised by the Department of Veterans Affairs and is 

administered by the Office of Servicemembers' Group Life Insurance (OSGLI) under terms of a 

group insurance contract. This program provides low-cost term insurance protection to service 

members. 

Eligibility For SGLI 

Full-time coverage is available for: 

• Commissioned, warrant and enlisted members of the Army, Navy, Air Force, Marine Corps 

and Coast Guard 

• Commissioned members of the National Oceanic and Atmospheric Administration and the 

Public Health Service 

• Cadets or midshipmen of the four United States Service Academies 

• Ready Reservists scheduled to perform at least 12 periods of inactive training per year 

• Members of the Individual Ready Reserves who volunteer for assignment to a mobilization 

category 

Part-time coverage is available for eligible members of the Reserves and ROTC who do not qualify 

for full-time coverage. 

The participation rate for fiscal year 2008 was 99% for active duty and 93% for Ready Reserve. 

Coverage Amounts 

Effective September 1, 2005, the maximum SGLI coverage was increased to $400,000. This 

coverage is: 

• Automatic at the time of entry into a period of active duty or reserve status. 

• Available only in $50,000 increments up to the maximum of $400,000 of insurance. 

Members may decline coverage or may elect reduced coverage by completing form SGLV-8286. 

However, if such a member later wishes to obtain or increase coverage, proof of good health will 

be required. 

NOTE: Reservists called to active duty, are automatically insured for$400,000 regardless of 

whether or not they had previously declined coverage, or elected a lesser amount of coverage 

while on reserve duty. They can reduce or decline coverage when they are called to active duty by 

completing form SGLV-8286. 
 QUESTIONS? Call OSGLI Toll Free: 1-800-419-1473 

 Visit our Website: www.insurance.va.gov 

31 

SGLI Premiums Rates 

Effective July 1, 2008, the basic SGLI premium rate was decreased from 7.0 cents per month per 

$1,000, to 6.5 cents per month per $1,000. 

The tables below show illustrative premium rates for both full-time and part-time Active Duty and 

Reservists:

Active Duty/Reservists 

Full-Time Coverage 

Monthly Premium*

(All Ages)

Active Duty/Reservists 

Part-Time Coverage 

Annual Premium*

(All Ages)

Amount of 

Insurance 

Effective 

July 1, 2008

Amount of 

Insurance 

Effective 

July 1, 2008

$50,000 $3.25 $50,000 $3.25 

$100,000 $6.50 $100,000 $6.50 

$150,000 $9.75 $150,000 $9.75 

$200,000 $13.00 $200,000 $13.00 

$250,000 $16.25 $250,000 $16.25 

$300,000 $19.50 $300,000 $19.50 

$350,000 $22.75 $350,000 $22.75 

$400,000 $26.00 $400,000 $26.00 

* These premiums do not include the $1.00 premium for TSGLI coverage. To calculate the total 

premium that would be due, add $1.00 to each rate shown. (e.g., for $200,000 of insurance 

coverage the premium would be $14, for $400,000 of insurance coverage, the premium would 

be $27, etc.) 

Coverage Periods 

Full-time coverage is effective: 

• throughout a member’s period of active duty or qualifying reserve status. 

• for a 120-day free period following separation or release from active duty or reserve status. 

Full-time coverage is also effective for up to two years* for members who are totally 

disabled at the time of separation. 

* On June 15, 2006, the President signed P.L. 109- 233, the Veterans’ Housing Opportunity & 

Benefits Improvement Act of 2006 extended the free coverage period from one year to two 

years. As a result of this change, service members who have a SGLI policy and are totally 
 QUESTIONS? Call OSGLI Toll Free: 1-800-419-1473 

 Visit our Website: www.insurance.va.gov 

32 

disabled from the time they separate from service can now keep their SGLI coverage for up to 

two years at no cost to them. Although this coverage is free, it must be applied for to the 

OSGLI after separation. 

Part-time coverage is effective: 

• only on the days of active duty or active duty for training and for periods of travel to and 

from such duty. 

• for a free period of 120 days if a member under part-time coverage incurs a disability or 

aggravates a preexisting disability while performing a period of duty. 

Beneficiary Selection 

Any beneficiary can be named. If none is selected, the insurance is distributed, by law, in the 

following order: 

1) spouse, or if none, 4) executor of estate, or if none, 

2) children, or if none, 5) other next of kin. 

3) parents, or if none, 

In an effort to protect spouses of service members, effective September 1, 2005, the President 

signed into law a measure which requires that a spouse of a service member must be notified by 

their branch of service if the member chooses not be insured under SGLI or to be insured for less 

than the maximum amount. The law also requires the spouse be notified if the service member 

names someone other than the spouse or child of the member as the beneficiary. 

Payment Of Policy Proceeds 

SGLI proceeds can be paid in a lump sum or over a 36-month period. 

If the proceeds are to be paid in a lump sum, then beneficiaries of SGLI and VGLI will receive the 

payment of their insurance proceeds via an “Alliance Account”. An Alliance Account is an 

interest bearing draft account with an account book similar to a checking account. Insurance 

proceeds are deposited in the beneficiary’s name and the beneficiary can write drafts for any 

amount up to the full amount of the proceeds. The Alliance Account: 

• earns interest at a competitive rate 

• is guaranteed by Prudential Insurance Company of America 

• gives the beneficiary time to make important financial decisions while their funds are secure 

and earning interest 

• gives the beneficiary immediate access to their money at all times 

Note: Beneficiaries cannot deposit additional funds into the Alliance Account.
 QUESTIONS? Call OSGLI Toll Free: 1-800-419-1473 

 Visit our Website: www.insurance.va.gov 

33 

Beneficiary Financial Counseling Services (BFCS) is an extra benefit offered to beneficiaries of 

SGLI and VGLI policies as well as TSGLI claimants, at no charge. Once a claim is settled, a 

beneficiary or claimant can receive free professional financial advice provided by FinancialPoint 

by calling toll-free at 1-888-243-7351 (SGLI or VGLI) or 1-800-428-3416 (TSGLI). BFCS offers: 

• Personalized Service – The beneficiary receives a financial plan tailored to their situation 

with action steps addressing their specific needs. 

• Objective Advice – The beneficiary benefits from the advice of financial professionals who 

have no products to sell, do not receive a commission for their services and are not 

affiliated with any banks or investment firms. 

• Convenience – The beneficiary can speak with a financial counselor at any time to get 

answers to questions they may have about their financial plan. 

Accelerated Benefits Option (ABO) gives terminally-ill SGLI and VGLI policyholders access to 

the death benefits of their policies before they die. This is a one-time benefit only. The member 

may receive a portion of the face value of the insurance in a lump-sum payment subject to the 

following: 

• Terminally ill insureds will have access of up to 50 percent of the face amount of their 

coverage during their lifetime. 

• This money will be available in increments of $5,000. 

• An insured must have a medical prognosis of life expectancy of nine months or less. 

Insurance Options After Separation From Service 

When released from active duty or the Reserve, members with full-time SGLI coverage can convert 

their coverage to Veterans Group Life Insurance or to an individual permanent plan commercial 

life insurance policy with any one of 43 participating commercial insurance companies. 

SGLI Program – Member Coverage 

Opened ___________________________________________ September 29, 1965 

Number of Members Covered _____________________________ 2,356,500 

Total Amount of Insurance in Force _______________________ $889,829,800,000 

Average Coverage Per Member ____________________________ $377,607 

Average Attained Age ____________________________________ 29.9 

Average Annual Death Rate _______________________________ 0.96 per 1,000 
 QUESTIONS? Call OSGLI Toll Free: 1-800-419-1473 

 Visit our Website: www.insurance.va.gov 

34 

Questions About TSGLI?

• Visit our website: 

www.insurance.va.gov 

or 

• call OSGLI toll-free: 

1-800-419-1473 

SGLI Traumatic Injury Protection Program 

TSGLI 

History Of The TSGLI Program 

The Traumatic Injury Protection (TSGLI) Program became effective December 1, 2005. TSGLI is 

automatic coverage for those covered under SGLI. It provides insurance payments to members 

who suffer certain serious traumatic injuries in service. The purpose of the program is to provide 

short-term financial assistance to traumatically injured service members in order to lessen the 

economic burden on them and their families during an often extensive recovery and rehabilitation 

process. 

Eligibility For TSGLI Coverage 

Who is covered under TSGLI

All service members who have SGLI coverage are automatically covered by TSGLI. It is not 

optional coverage. TSGLI coverage applies to active duty members, reservists, funeral honors 

duty and one-day muster duty. 

Who is not covered under TSGLI

This coverage does not apply to spouses and children covered under Family SGLI, nor to those 

covered under the VGLI program. 

A member who wants to file a claim for the traumatic injury benefit should contact their uniformed 

service to begin the certification process (go to www.insurance.va.gov/sgliSite/TSGLI/TSGLI.htm

for contact information). Each uniformed service will determine a member’s eligibility for 

traumatic injury protection benefits and will provide certification for payment to the member. 

Coverage Amounts 

TSGLI payments will range from $25,000 to a maximum of $100,000, depending on the type and 

severity of injury. TSGLI does not provide payments for losses due to illness or disease. (For 

injuries that are covered by, or excluded from TSGLI, see “Injuries Covered by TSGLI” and 

“Losses Excluded From TSGLI Payment” below.) 

TSGLI benefits are also payable retroactively to any member (whether they were insured for SGLI 

or not) who suffered a qualifying traumatic injury between 

October 7, 2001 and December 1, 2005 in Operation Enduring 

Freedom or Operation Iraqi Freedom. 

TSGLI Premiums 

Premiums for the traumatic injury coverage are $1.00 per month 

and are deducted from the service member’s pay. 
 QUESTIONS? Call OSGLI Toll Free: 1-800-419-1473 

 Visit our Website: www.insurance.va.gov 

35 

Injuries Covered by TSGLI 

TSGLI covers certain specific losses as listed in the “TSGLI Schedule of Losses” (go to 

www.insurance.va.gov/sgliSite/TSGLI/TSGLI.htm for this schedule). These losses include the 

following categories and certain combinations thereof: 

• Total and permanent loss of sight, speech, or hearing 

• Amputation of hand (includes loss of four fingers on the same hand or loss of thumb) 

• Amputation of foot (includes loss of all toes) 

• Loss of four toes on the same foot or loss of big toe 

• Limb salvage 

• Quadriplegia, paraplegia, hemiplegia, or uniplegia 

• Burns 

• Facial reconstruction 

• Coma from traumatic injury 

• Inability to carry out the activities of daily living due to traumatic brain injury 

• Inability to carry out the activities of daily living due to other traumatic injury 

• Continuous 15-day inpatient hospital care due to traumatic injury 

Losses Excluded From TSGLI Payment 

The following losses are excluded from TSGLI payment: 

1) Losses caused by: 

a) a mental disorder. 

b) a mental or physical illness or disease, unless the illness or disease is caused by 

(1) a pyogenic (pus forming, often from a wound) infection, biological, chemical, or 

radiological weapon, or 

(2) accidental ingestion of a contaminated substance.

c) attempted suicide, 

d) self-inflicted wounds, 

e) diagnostic procedures, preventive medical procedures such as inoculations, medical or surgical 

treatment for an illness or disease, or any complications arising from such procedures or 

treatment, or 

f) the member’s willful use of an illegal or controlled substance, unless administered or consumed 

on the advice of a medical professional. 

2) Injuries sustained while committing, or attempting to commit, a felony. 
 QUESTIONS? Call OSGLI Toll Free: 1-800-419-1473 

 Visit our Website: www.insurance.va.gov 

36 

Significant New Changes in the SGLI Traumatic Injury Protection 

(TSGLI) Program 

The TSGLI Year-One Review 

TSGLI coverage became effective on December 1, 2005 for all participants in the 

Servicemembers Group Life Insurance (SGLI) program. As the original program was 

being implemented, VA announced that it would implement a Year One Review of TSGLI. This 

review would be undertaken to assure that the TSGLI program was meeting its intended purpose, that 

all appropriate conditions were being covered, and that the program was operating efficiently and 

effectively. VA wanted to ensure that the TSGLI program is fulfilling its mission to provide shortterm financial assistance to severely injured service members and their families and to improve the 

administration of the program. 

VA, in cooperation with DoD, undertook a complete evaluation of the losses covered by the TSGLI 

program as well as the definitions of eligibility. They met with and requested information from a 

variety of medical experts, performed independent research, made site visits to medical treatment 

facilities, had discussions with advocacy groups and case managers, received input from the claims 

processors in the branches of service, and conducted a comprehensive analysis of over 200 completed 

cases. Since TSGLI was broadly modeled after Accidental Death and Dismemberment (AD&D) 

benefits in the commercial insurance industry, VA also examined industry trends relating to AD&D 

benefits over the last two years. 

Program Design Enhancements 

The TSGLI legislation mandated coverage of certain specific losses: the total and permanent loss of 

sight, speech or hearing, amputation of hand or foot, loss of thumb and index finger, quadriplegia, 

paraplegia, or hemiplegia, burns, coma, or the inability to carry out the activities of daily living 

resulting from traumatic injury to the brain. The legislation also authorized the Secretary of Veterans 

Affairs, in collaboration with the Secretary of Defense, to prescribe additional losses. 

The following program design changes, all of which were brought to the Team’s attention by medical 

professionals and other stakeholders who are involved with the TSGLI program, were made part of the 

TSGLI regulation changes, which became effective on November 26, 2008. 

Expansion of Covered Losses 

1) Loss of Sight 

Loss of Sight lasting 120 days or more is considered as "permanent”, qualifying the service member 

for the same payment rate as for permanent loss of sight ($100,000 for both eyes, $50,000 for one eye). 

2) Uniplegia 

Uniplegia (complete and total paralysis of one limb) has been added to the schedule of losses with 

payment at $50,000. 
 QUESTIONS? Call OSGLI Toll Free: 1-800-419-1473 

 Visit our Website: www.insurance.va.gov 

37 

3) Amputation of the Hand 

The definition of amputation of the hand has been expanded to include loss of four fingers (on the 

same hand) or loss of thumb, with payment remaining at $50,000 for one affected hand and $100,000 

for both hands. 

4) Amputation of the Foot 

The definition of amputation of the foot has been expanded to include loss of all toes, with the 

payment remaining at $50,000 for one affected foot and $100,000 for both feet. 

5) Loss of Four Toes 

A new category has been created for loss of four toes (on the same foot and not including the big toe) 

with payment at $25,000 for one affected foot and $50,000 for both feet. 

6) Loss of Big Toe 

A new category has been created for the loss of the big toe, with payment at $25,000 for one affected 

foot and $50,000 for both feet. 

7) Limb Salvage 

Coverage has been expanded to include limb salvage (multiple surgeries intended to save a limb rather 

than amputate) with payment equivalent to amputation. 

8) Burns 

The burn standard, currently 3rd degree (full thickness) burns to at least 30% of face or body, has been 

expanded to include 2nd degree (partial thickness) burns to at least 20% of the face or body. 

9) Hospitalization as a Proxy for ADL Loss 

Continuous 15-day inpatient hospital care is deemed a proxy for the first ADL eligibility period for 

Other Traumatic Injury (OTI) and Traumatic Brain Injury (TBI) claims. 

10) Facial Reconstruction 

Facial Reconstruction, required as a result of traumatic avulsion of the face or jaw that causes 

discontinuity defects, has been added to the schedule of losses, with payment levels of $25,000 to 

$75,000, depending upon the severity of the injury. 

Claims Assistance, Outreach and Administrative Efficiency Enhancements 

1) Case Management Model 

A case management approach for TSGLI claims, as recommended by the Team, is being implemented 

at the major Military Treatment Facilities. This model utilizes dedicated on-site staff to control and 

shepherd a patient’s claim through all aspects of the claims process. 

2) TSGLI Claimants Who Are Incompetent to Pursue a Claim 

VA has included a provision in the revised TSGLI regulation that would authorize a Military Trustee 

under the authority of 37 U.S.C. § 602 to file claims and receive TSGLI payments on behalf of 

incompetent members. 
 QUESTIONS? Call OSGLI Toll Free: 1-800-419-1473 

 Visit our Website: www.insurance.va.gov 

38 

3) Improved Claim Form

A new TSGLI claim form has been introduced. The form was revised based on feedback from 

claimants, case managers, medical professionals, TSGLI processing offices, and usability testing 

results. The new claim form is available on the VA Insurance website under “Traumatic SGLI” at 

http://www.insurance.va.gov/sgliSite/TSGLI/TSGLI.htm. 

4) Schedule of Losses 

A simplified presentation of the Schedule of Losses has been developed and made available on the VA 

Insurance website at http://www.insurance.va.gov/sgliSite/TSGLI/TSGLI.htm. 

5) TSGLI and Combat-related Injury and Rehabilitation Pay (CIP) 

In May 2008, CIP was replaced by the Pay and Allowance Continuation (PAC) program. PAC 

authorizes the continuation of pay and allowances for up to one year to service members who incur a 

wound, injury or illness in the line of duty while serving in a combat operation or combat zone and are 

hospitalized for treatment. The Review Team had received anecdotal evidence that interaction with 

CIP was one factor in the lengthy delays in initiating TSGLI claims, since receipt of TSGLI was a 

triggering event for the termination of CIP. Many CIP-eligible members delayed applying for TSGLI 

as long as possible to allow CIP to continue. One of the improvements that the PAC program has over 

the CIP program is that it de-links a member’s entitlement from TSGLI. 

Eligibility and Effective Date of Changes 

VA published regulations implementing the program changes effective November 26, 2008. 

Entitlement Dates

All new and revised losses are retroactive to the earliest eligibility date of the TSGLI program, 

October 7, 2001. 

Losses due to traumatic events from October 7, 2001 through November 30, 2005 must have been 

incurred in Operations Enduring Freedom (OEF) or Operation Iraqi Freedom (OIF), which means: 

• during deployment outside of the United States on orders in support of OEF or OIF 

or

• while serving in a geographic location that qualified the service member for the Combat Zone 

Tax Exclusion under the Internal Revenue Service Code. 

Note: If this criteria is met, it does not matter whether the service member had SGLI coverage during 

this retroactive period. 

For losses due to traumatic events incurred from December 1, 2005 to the present, the loss can occur 

anywhere, regardless of OEF/OIF status, as long as the member was covered by SGLI at the time of the 

traumatic event. 
 QUESTIONS? Call OSGLI Toll Free: 1-800-419-1473 

 Visit our Website: www.insurance.va.gov 

39 

New Applications

If service members or veterans wish to file a claim based on the new or revised losses, their branch of 

service TSGLI office will be able to provide them with claim filing guidance, appropriate claim forms, 

and claims processing information regarding the new, existing, and revised losses. The branches of 

service will determine eligibility based on the program additions and changes. Contact information for 

the branch of service TSGLI offices is available on the VA insurance website at 

http://www.insurance.va.gov/sgliSite/TSGLI/TSGLI.htm. 

Previously Filed Claims (Denied Claims and Claims where less than 

$100,000 Paid)

If the service member or veteran previously filed a claim, their branch of service TSGLI office will 

determine their eligibility for any new TSGLI benefits based on the program changes. Based on 

guidance provided by VA, the branch of service TSGLI offices will automatically reconsider all 

previously denied claims and all claims in which less than $100,000 has been paid to determine if 

new benefits under the revised program provisions are payable. 

In either situation, if service members or veterans are determined eligible for a benefit, they will be 

contacted to confirm their current address and banking information without any action on their part. 

In addition, VA is conducting data mining from the Joint Patient Tracking and Veterans Tracking 

Applications (JPTA/VTA) to identify veterans who may have suffered one or more of the new losses 

or who have losses under the former criteria but never filed a claim. 

To expedite the process, service members or veterans who believe they could qualify under the new 

program changes should contact their branch of service TSGLI office to ensure that: 

1. Their previous claim is being reviewed for a new eligibility determination 

2. All the required information is of record; and 

3. Their current contact and banking information is up to date. 

Additional VA Assistance to the Branches of Service in Support of TSGLI 

Program Enhancements 

VA provided extensive training to the branches of service TSGLI staffs, medical professionals, patient 

care coordinators and other stakeholders regarding the program changes. VA also prepared a detailed 

Procedures Guide for use by the branches, worked closely with them to develop outreach letters and 

procedures, and is closely monitoring the branches’ progress in identifying and paying those who are 

eligible under the new criteria. 
 QUESTIONS? Call OSGLI Toll Free: 1-800-419-1473 

 Visit our Website: www.insurance.va.gov 

40 

Servicemembers’ Group Life Insurance Family Coverage 

FSGLI 

History Of The FSGLI Program 

The Veterans' Survivor Benefits Improvements Act of 2001 extended life insurance coverage to 

spouses and children of members insured under the SGLI program. 

Eligibility For SGLI Family Coverage 

Family coverage is available for the spouses and dependent children of: 

• Active duty service members and 

• Members of the Ready Reserve of a uniformed service 

Note: Family coverage is available only for members insured under the SGLI program. Family 

coverage is not available for those insured under the VGLI program. 

Coverage Amounts 

SGLI coverage for spouses and children is issued automatically. Coverage is issued based on the 

information in the service member’s personnel record. 

Group Covered Coverage Amounts 

Spouse 

Up to $100,000 coverage can be purchased for a spouse in increments of 

$10,000. SGLI coverage for a spouse may not be greater than the amount of the 

service member’s coverage. For example, if the service member has $50,000 of 

SGLI coverage, the spouse can only be covered for up to $50,000. 

Children 

Each dependent child of every active duty service member or reservist insured 

under SGLI is automatically insured for $10,000 at no additional cost. 

Note: The maximum benefit under family coverage for any one child is 

$10,000. This means that if both parents are insured under SGLI, the maximum 

payment upon the death of the child is $10,000.

Members may decline coverage or may elect reduced coverage for their spouse by completing form 

SGLV-8286A, Family Coverage Election. If such a member later wishes to obtain or increase 

coverage for their spouse, the member must complete Form SGLV 8285A and provide proof of 

insurability (good health of the spouse). 
 QUESTIONS? Call OSGLI Toll Free: 1-800-419-1473 

 Visit our Website: www.insurance.va.gov 

41 

Coverage for Stillborn Children 

The Veterans’ Benefits Improvement Act of 2008 (Public Law 110-389) was passed on 

October 10, 2008. This law provides coverage for stillborn children as insurable dependents under 

the FSGLI program. Previously, child coverage under SGLI had by law excluded stillborns from 

coverage under FSGLI. VA is drafting a regulation that will provide for the definition of a 

stillborn child in FSGLI. It is anticipated that the required regulation will be published in the 

Federal Register in mid-2009. At that time, the program will begin making payments for deaths of 

stillborn children of SGLI members occurring on or after October 10, 2008. 

SGLI Family Coverage Premiums 

Premiums for family SGLI are automatically deducted from a service member’s pay and will 

continue to be deducted from pay until the service member’s separation from service. Coverage 

will continue, at no extra cost, for 120 days following separation from service. 

Premiums are not withheld for children since coverage for children is free. 

Effective July 1, 2006, premiums for SGLI spouse coverage were reduced. The table below shows 

the monthly premiums for a spouse based on age and amount of coverage.

Servicemembers’ Group Life Insurance - Spouse Coverage 

Monthly Premium Rates - Effective July 1, 2006

Age of Spouse Amount of 

Insurance 34 & 

Below 35-39 40-44 45-49 50-54 55-59 60 &Over

$100,000 $5.50 $7.00 $9.00 $14.00 $27.00 $40.00 $52.00 

90,000 4.95 6.30 8.10 12.60 24.30 36.00 46.80 

80,000 4.40 5.60 7.20 11.20 21.60 32.00 41.60 

70,000 3.85 4.90 6.30 9.80 18.90 28.00 36.40 

60,000 3.30 4.20 5.40 8.40 16.20 24.00 31.20 

50,000 2.75 3.50 4.50 7.00 13.50 20.00 26.00 

40,000 2.20 2.80 3.60 5.60 10.80 16.00 20.80 

30,000 1.65 2.10 2.70 4.20 8.10 12.00 15.60 

20,000 1.10 1.40 1.80 2.80 5.40 8.00 10.40 

10,000 0.55 0.70 0.90 1.40 2.70 4.00 5.20 

Because premiums are automatically deducted from the member’s pay for spouse coverage, and the 

existence of children for claim purposes is determined from military records, it is important that 

the information in the member’s personnel and payroll files concerning their spouse and 

children is accurate and up to date.
 QUESTIONS? Call OSGLI Toll Free: 1-800-419-1473 

 Visit our Website: www.insurance.va.gov 

42 

Termination Of Family Coverage 

Coverage for a spouse will end 120 days after any of the following events: 

• The date the service member elects in writing to terminate their spouse's coverage 

• The date the service member elects in writing to terminate their own SGLI coverage 

• The date of the service member’s death 

• The date the service member separates from service 

• The date of the service member’s divorce from spouse 

Note: A spouse can convert his or her coverage to an individual permanent plan life insurance 

policy with any one of 43 participating commercial insurance companies. See information under 

"Conversion Of Family Coverage" below.

Coverage for a child will end 120 days after any of the following events: 

• The date the service member elects in writing to terminate their own coverage 

• The date the service member separates from service 

• The date of the service member’s death 

• The date the service member’s child is no longer their dependent. A child is considered to 

be a dependent if: 

 the child is unmarried and is under the age of 18. This includes all natural born 

children, legally adopted children and stepchildren who are members of the service 

member’s household. 

 the child is unmarried, between the ages of 18 years and 22 years and is pursuing a 

course of instruction at an approved educational institution. 

 the child is unmarried and becomes permanently incapable of self-support before the 

age of 18. 

Conversion Of Family Coverage 

A spouse may elect to convert his or her coverage to an individual permanent plan life insurance 

policy with any one of 43 participating commercial insurance companies within 120 days 

following one of the “termination of family coverage” events listed above. Spouses wishing to 

exercise this conversion privilege should contact OSGLI at their toll-free number in order to obtain 

a conversion package with the appropriate information. 

There are no conversion options available to children. 
 QUESTIONS? Call OSGLI Toll Free: 1-800-419-1473 

 Visit our Website: www.insurance.va.gov 

43 

Payment Of Policy Proceeds 

Payments of Family SGLI proceeds are made as follows: 

For the death of: Proceeds are paid to: 

A spouse The service member 

A child of one SGLI participant The service member 

A child of two married SGLI 

participants 

The service member who was eligible for SGLI 

coverage the longest 

A child of two separated or 

divorced SGLI participants The service member who has custody of the child 

It is important to understand that family insurance coverage belongs to the SGLI insured member 

and not to the spouse. 

SGLI Program – Family Coverage 

Opened __________________________________________________ November 1, 2001 

Number of Spouses Covered ______________________________ 1,077,000 

Total Amount of Spouse Insurance in Force ________________ $106,258,100,000 

Average Attained Age of Spouses _________________________ 33.0 

Average Annual Death Rate of Spouses _________________ 0.72 per 1,000 

Number of Children Covered ______________________________ 2,027,000 

Total Amount of Child Insurance in Force __________________ $20,270,000,000 

Average Attained Age of Children _________________________ 8.7 

Average Annual Death Rate of Children ________________ 0.51 per 1,000 

For more information on SGLI Family Coverage, please visit our website at: 

http://www.insurance.va.gov/sgliSite/FSGLI/sglifam.htm 
 QUESTIONS? Call OSGLI Toll Free: 1-800-419-1473 

 Visit our Website: www.insurance.va.gov 

44 

 Veterans' Group Life Insurance 

VGLI 

History Of The VGLI Program 

In 1974, the Veterans' Group Life Insurance (VGLI) program became available. VGLI, like SGLI, 

is supervised by the Department of Veterans Affairs, but is administered by the Office of 

Servicemembers' Group Life Insurance (OSGLI). VGLI provides for the conversion of SGLI 

coverage to a lifetime renewable term policy of insurance protection after a service member’s 

separation from service. 

Eligibility For VGLI 

Full-time coverage is available for the following members: 

• Full-time SGLI insureds who are released from active duty or the Reserves. 

• Ready Reservists who have part-time SGLI coverage, and who, while performing active 

duty or inactive duty for training for a period of less than 31 days, incur a disability or 

aggravate a preexisting disability that makes them uninsurable at standard premium rates. 

• Members of the Individual Ready Reserve (IRR) and Inactive National Guard (ING). 

Coverage Amounts 

Effective September 1, 2005, the maximum amount of VGLI was increased to $400,000. VGLI is 

issued in multiples of $10,000 up to the maximum $400,000 but not for more than the amount of 

SGLI coverage the member had in force at the time of separation from active duty or the reserves. 

VGLI Renewal 

Members may renew their VGLI coverage under the following conditions: 

• Members who have separated from service may renew their VGLI coverage annually for 

life. 

• Members of the IRR or ING may renew their VGLI as long as they remain in the IRR or 

ING. 

• Rather than renew, a member also has the right at any time to convert VGLI to an 

individual permanent plan life insurance policy with any one of 43 participating 

commercial insurance companies. The member can convert their VGLI in $10,000 

increments. 

How To Apply For VGLI 

Application by Mail

VGLI applications are mailed to eligible members three times: generally within 60 days after 

separation; just prior to 120 days after separation when the SGLI free coverage period ends; and 
 QUESTIONS? Call OSGLI Toll Free: 1-800-419-1473 

 Visit our Website: www.insurance.va.gov 

45 

again shortly before the end of the 16-month application period. Applications are mailed to the 

address shown on the member’s DD Form 214 or equivalent separation orders. It is the member's 

responsibility, however, to apply within the time limits, even if they do not receive an application 

in the mail. Applications for VGLI coverage should be mailed to The Office of Servicemembers' 

Group Life Insurance, P.O. Box 41618, Philadelphia, PA 19176-9913. (Questions and general 

correspondence should be mailed to Office of Servicemembers' Group Life Insurance, 80 

Livingston Avenue, Roseland, New Jersey 07068-1733.) 

On-line Application 

Veterans can now apply for VGLI coverage through the VGLI Online Access portal on the Web. 

The veteran is walked through each step of the application process, from retrieving data 

automatically if OSGLI already has it on file, to presenting medical questions, if necessary, which 

can be completed on-line. Applications are evaluated instantly, and the veteran is informed 

immediately if his or her coverage is approved or if the application has been referred to OSGLI for 

further review. To apply on-line, go to the VA Insurance website, follow the link to the 

“Servicemembers’ and Veterans’ Group Life Insurance” website at 

http://www.insurance.va.gov/sgliSite/default.htm and click on “VGLI Online Access”. 

Time Limits To Apply For VGLI 

To be eligible, a member must apply for VGLI within the following time limits: 

• Ordinarily, a member must submit an application to the OSGLI with the required premium 

within 120 days following separation from service. 

• If a member is totally disabled at the time of separation from active duty and is granted 

extended free SGLI coverage by OSGLI, he or she will be automatically enrolled in VGLI 

at the end of the two year extension period. 

• Individuals who are assigned to the IRR and ING have 120 days after assignment to apply, 

without evidence of good health, and one year after that with evidence of good health. 

• If an application or the initial premium has not been submitted within the time limits above, 

VGLI may still be granted if an application, the initial premium and evidence of 

insurability (good health) are submitted to OSGLI within 1 year and 120 days following 

separation from service. Applications will not be accepted after one year and 120 days.

• An application for an incompetent member may be made by a guardian, committee, 

conservator or curator. In the absence of a court-appointed representative, the application 

may be submitted by a family member or anyone acting on the member’s behalf. 

Payment Of Premiums 

Once a VGLI application is approved, the OSGLI will send the insured a certificate of coverage 

and will begin billing the insured monthly. There are several options available for the payment of 

premiums. For some of these options, the insured will receive a discount of premiums. 
 QUESTIONS? Call OSGLI Toll Free: 1-800-419-1473 

 Visit our Website: www.insurance.va.gov 

46 

Frequency of 

Payment 

Methods of Payment Available Premium 

Discount Rate 

Monthly Allotment from military retirement pay No Discount

Deduction from VA compensation payments 

Check 

On-demand deduction from checking account or credit card 

Quarterly Check 2.50% Discount

On demand deduction from checking account or credit card 

Semi-annually Check 3.75% Discount

On demand deduction from checking account or credit card 

Annually Check 5.00% Discount

On demand deduction from checking account or credit card 

VGLI Premium Rates 

VGLI premium rates are determined by age group and amount of insurance. VGLI is available in 

$10,000 increments. 

As of July 1, 2008, VGLI premium rates were reduced for those ages 30 to 64, which comprise 85 

percent of those insured under the program. Sample rates are shown below: 

VGLI Monthly Premium Rates

Amount of Insurance Age $400,000 $300,000 $200,000 $100,000 $50,000 $10,000 

Thru 29 $32.00 $24.00 $16.00 $8.00 $4.00 $0.80 

30 thru 34 40.00 30.00 20.00 10.00 5.00 1.00 

35 thru 39 52.00 39.00 26.00 13.00 6.50 1.30 

40 thru 44 68.00 51.00 34.00 17.00 8.50 1.70 

45 thru 49 88.00 66.00 44.00 22.00 11.00 2.20 

50 thru 54 144.00 108.00 72.00 36.00 18.00 3.60 

55 thru 59 268.00 201.00 134.00 67.00 33.50 6.70 

60 thru 64 432.00 324.00 216.00 108.00 54.00 10.80 

65 thru 69 600.00 450.00 300.00 150.00 75.00 15.00 

70 thru 74 900.00 675.00 450.00 225.00 112.50 22.50 

75 & Over 1,800.00 1,350.00 900.00 450.00 225.00 45.00 

High Cost of Term Insurance at Older Ages 

To lessen the high cost of term insurance at the older ages, veterans should consider gradually 

reducing the amount of their VGLI coverage, as they get older since their insurance needs may 

lessen. The following is a suggested coverage reduction schedule that will allow the veteran to 

maintain a level premium while reducing coverage: 
 QUESTIONS? Call OSGLI Toll Free: 1-800-419-1473 

 Visit our Website: www.insurance.va.gov 

47 

Age Group Coverage Level Premium 

65-69 $150,000 $225 

70-74 $100,000 $225 

 75 & over $50,000 $225 

Following this schedule the veteran’s monthly premium would remain at $225.00 after age 65. 

Beneficiary Selection 

Any beneficiary can be named. If none is selected, the insurance is distributed, by law, in the 

following order: 

1) spouse, or if none, 

2) children, or if none, 

3) parents, or if none, 

4) executor of estate, or if none, 

5) other next of kin. 

Payment Of Policy Proceeds 

VGLI proceeds can be paid in a lump sum or over a 36-month period. 

If the proceeds are to be paid in a lump sum then beneficiaries of VGLI will receive the payment of 

their insurance proceeds via an “Alliance Account”. An Alliance Account is an interest bearing 

draft account with an account book similar to a checking account. Insurance proceeds are 

deposited in the beneficiary’s name and the beneficiary can write drafts for any amount up to the 

full amount of the proceeds. The Alliance Account: 

• earns interest at a competitive rate 

• is guaranteed by Prudential Insurance Company of America 

• gives the beneficiary time to make important financial decisions while their funds are secure 

and earning interest 

• gives the beneficiary immediate access to their money at all times 

Note: Beneficiaries cannot deposit additional funds into the Alliance Account. 

Beneficiary Financial Counseling Services (BFCS) is an extra benefit offered to beneficiaries of 

SGLI and VGLI policies as well as TSGLI claimants, at no charge. Once a claim is settled, a 

beneficiary or claimant can receive free professional financial advice provided by FinancialPoint by 

calling toll-free at 1-888-243-7351 (SGLI or VGLI) or 1-800-428-3416 (TSGLI). BFCS offers: 

• Personalized Service – The beneficiary receives a financial plan tailored to their situation 

with action steps addressing their specific needs. 
 QUESTIONS? Call OSGLI Toll Free: 1-800-419-1473 

 Visit our Website: www.insurance.va.gov 

48 

• Objective Advice – The beneficiary benefits from the advice of financial professionals who 

have no products to sell, do not receive a commission for their services and are not 

affiliated with any banks or investment firms. 

• Convenience – The beneficiary can speak with a financial counselor at any time to get 

answers to questions they may have about their financial plan. 

Accelerated Benefits Option (ABO) gives terminally-ill SGLI and VGLI policyholders access to 

the death benefits of their policies before they die. This is a one-time benefit only. The member 

may receive a portion of the face value of the insurance in a lump-sum payment subject to the 

following: 

• Terminally ill insureds will have access of up to 50 percent of the face amount of their 

coverage during their lifetime. 

• This money will be available in increments of $5,000. 

• An insured must have a medical prognosis of life expectancy of nine months or less. 

On-line Policy Access 

VGLI policyholders can access their policies online by going to the VA insurance website at 

www.insurance.va.gov and following the link to the “Servicemembers’ and Veterans’ Group 

Life Insurance Web site.” First time users can enter their Social Security Number and last 

name. After submitting this information they are then given the opportunity to create their 

own User ID and Password. The policyholder will then have access to his/her Veteran's 

Group Life Insurance record. Policyholders can view and verify account information, such as 

status of their coverage, payment and billing information, and beneficiary information. 

Address changes, name changes, and changes to coverage amounts can also be done on-line. 

In addition, veterans whose coverage has lapsed due to non-payment of premiums can apply 

online to have their coverage reinstated. 

VGLI Program 

Opened __________________________________________ August 1, 1974 

Number of Veterans Covered _____________________________ 431,281 

Total Amount of Insurance in Force _______________________ $55,635,915,000 

Average Coverage per Veteran ____________________________ $129,002 

Average Attained Age ____________________________________ 46.7 

Average Annual Death Rate ______________________________ 4.41 per 1,000 

FOR INFORMATION ON CONTACTING OSGLI, PLEASE SEE PAGE 84 
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

 Visit our Website: www.insurance.va.gov 

49 

Servicemembers’ Civil Relief Act 

(SCRA) 

History Of The Servicemembers’ Civil Relief Act 

Congress and state legislatures have long recognized that military service can often place an 

economic and legal burden on service members. The Soldiers’ and Sailors’ Civil Relief Act of 

1918 was passed in order to protect the rights of service members while serving on active duty. 

Service members were protected from such things as repossession of property, bankruptcy, 

foreclosure or other such actions while serving in the military. This Act remained in effect until 

shortly after World War I when it expired. The Soldiers’ and Sailors’ Civil Relief Act of 1940 

(SSCRA) was passed in order to protect the rights of the millions of service members activated for 

World War II. The SSCRA has remained in effect until the present day and has been amended 

many times since 1940 to keep pace with the changing military. In December 2003, Congress 

passed legislation renaming SSCRA as the Servicemembers’ Civil Relief Act (SCRA). The SCRA 

updates and strengthens the civil protections enacted during World War II. 

Eligibility For Protection of Life Insurance Coverage under SCRA 

Under SCRA, the U.S. Department of Veterans Affairs (VA) will protect, from default for 

nonpayment of premiums, up to $400,000 of life insurance for service members called to active 

duty. The protection provided by this legislation applies during the insured's period of military 

service and for a period of two years thereafter. The following are conditions for eligibility for 

protection: 

• The policy must be whole life, endowment, universal life or term insurance. 

• The policy must have been in force on a premium-paying basis for at least six months at the 

time the service member applies for benefits and prior to the date of the insured’s entry into 

military service. 

• Benefits from the policy cannot be limited, reduced or excluded because of military service. 

Policies for which an additional amount of premium is charged due to military service are 

not eligible for protection under SCRA. 

The service member must apply for protection of their life insurance by filing VA Form 29-

380 “Application For Protection Of Commercial Life Insurance Policy” with his/her 

insurance company and forwarding a copy of the application to VA. 
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

 Visit our Website: www.insurance.va.gov 

50 

Benefits Of SCRA Life Insurance Protection 

Once the service member has applied for protection of their life insurance policy and VA 

determines that the policy is eligible for protection under SCRA: 

• The service member is still responsible for making premium payments. However, the 

policy will not lapse, terminate, or be forfeited because of the service member’s failure to 

make premium payments or to pay any indebtedness or interest due during their period of 

military service or for a period of two years thereafter. 

• The right of the service member to change their beneficiary designation or select an 

optional settlement for a beneficiary are not affected by the provisions of this Act. 

Limitations Of SCRA Life Insurance Protection 

Once the service member has applied for protection of their life insurance policy and VA 

determines that the policy is eligible for protection under SCRA: 

• Premium payments are only deferred, not waived. During this period, the government 

does not pay the premiums on the policy but simply guarantees that the premiums will 

be paid at the end of the service member’s period of active duty.

• A service member cannot receive dividends, take out a loan, or surrender the policy for 

cash without the approval of VA. (Dividends or other monetary benefits shall be added to 

the value of the policy and will be used as a credit when final settlement is made with the 

insurer.) 

• If the policy matures as a result of the insured’s death, or any other means, during the 

protected period, the insurance company will deduct any unpaid premiums and interest due 

from the settlement amount. 

Termination Of Period Under SCRA 

The service member has up to two years after their military service terminates to repay the unpaid 

premiums and interest to the insurer. If the amount owed is not paid before the end of the two 

years, then: 

• the insurer treats the unpaid premiums as a loan against the policy. 

• the government will pay the insurer the difference between the amount due and the cash 

surrender value (if the cash surrender value of the policy is less than the amount owed.) 

• the amount the United States government pays to the insurance company under the SCRA 

Act, becomes a debt due the government by the insured. 

• If the policy matures as a result of the insured’s death, or any other means, during the 

protected period, the insurance company will deduct any unpaid premiums and interest due 

from the settlement amount. 
51 

Administered 

Program Policy 

Provisions 

For policies directly administered by VA: 

USGLI, NSLI, VSLI, VRI, S-DVI 

(For information about the VMLI program, 

please see pages 27-29.) 

For information about policies supervised by 

VA (SGLI and VGLI), please see pages 30-45 

and page 84. IV
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

 Visit our Website: www.insurance.va.gov 

52 

 

Plans of Insurance 

Some of the features of the different insurance plans are described below: 

5-Year Level Premium Term 

• Available on all programs except "J," "JR," "JS" 

• Renewable every five years 

• May be converted to a permanent plan 

• Provides low cost protection at younger ages but premiums increase substantially at the older 

ages 

• Provides protection only and has no cash or loan 

values*

• When premiums are not paid, the protection 

stops*

Modified Life At Age 65 

• Available on all programs except "K" 

• Can only be purchased before the insured attains insurance age 61 

• Affords a permanent plan of insurance at a premium that is lower than the Ordinary Life Plan 

premium 

• Provides an automatic reduction by 1⁄2 of the face amount of the insurance on the day before the 

insured’s 65th birthday. (The premium remains the same. The decreased amount of insurance 

may, without medical examination, be replaced with an Ordinary Life policy at an additional 

premium by making application no later than the day before the insured’s 65th birthday.) 

Modified Life At Age 70 

• Available on all programs except "K” 

• Has the same provisions as the Modified Life at Age 65 plan, except that reduction happens on 

the day before the insured’s 70th birthday 

• Conversion to this plan can be made through insurance age 69 

Ordinary Life (“Whole Life”) 

• Available on all programs 

• Premiums remain constant 

• Premiums are payable for the lifetime of the insured 

* Effective September 11, 2000, “capped” 

NSLI and VSLI term policies receive a 

termination dividend that protects against the 

lapse of the policy. For more information see 

page 17 for NSLI policies and page 19 for 

VSLI policies. 
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

 Visit our Website: www.insurance.va.gov 

53 

30-Payment Life 

• Available on all programs 

• Premiums are slightly higher 

than on Ordinary Life 

• Premiums are payable for 30 

years from the effective date of 

the policy 

20-Payment Life 

• Available on all programs 

• Premiums are higher than on 

30-Payment Life 

• Premiums are payable for 20 

years 

20-Year Endowment 

• Available on all programs 

• Premiums are payable for 20 years from the effective date of the policy 

• Provides for payment of the face amount of the policy (less any indebtedness) to the 

policyholder at the end of the 20 years 

• Policy proceeds paid in lump sum or on an installment basis 

Endowment At Age 60 

• Available on all programs except "K" 

• Provides for the payment of the face amount (less any indebtedness) on the anniversary date 

nearest the insured's 60th birthday 

Endowment At Age 65 

Same as Endowment at Age 60 except proceeds payable on the anniversary date nearest the 

insured's 65th birthday 

Endowment At Age 96 

• Available to "K" policyholders, age 65 or older, who were still carrying insurance under the 

term plan 

• Regular endowment plan maturing at age 96 with a level premium from the date of issue 

• Does not provide permanent and total disability benefits, or waiver of premium 

• Provides a waiver of premiums provision to be purchased for an additional premium at the time 

the insurance was exchanged 

Distribution of Policies Inforce By Plan of 

Insurance September 30, 2008

Ordinary Life

"Whole Life"

27%

Modified Life

Age 70

6%

Modified Life

Age 65

6%

5-Year Level

Premium Term

22%

Other**

3% 20-Payment Life

24%

30-Payment Life

11%

Endowment 

Policies*

1%

* Includes endowment at ages 60, 65 and 96 and 20 and 30 year endowment policies

** Includes paid-up addition only policies. Also includes reduced paid-up and extended

 policies (see page 50 for an explanation of these polices).
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

 Visit our Website: www.insurance.va.gov 

54 

NSLI “V” Term Insurance 

High Cost of Insurance for Older Veterans 

The high cost of term insurance for older veterans has long been a concern of the Insurance 

Program. Many World War II veterans chose to retain the NSLI term coverage they obtained 

while in service, but unfortunately failed to convert it to a permanent plan of insurance. Term 

insurance becomes very expensive at older ages. As of September 2008, there are approximately 

188,000 NSLI veterans who have term policies. 

The “Capping” of VA Term Policies 

In 1984, a VA regulation was approved which “capped” premiums on NSLI term policies at the 

age 70 rate. 

• When the insured veteran renews at age 70 or older, the capped rate of $61.80 per month 

for $10,000 of insurance goes into effect. 

• This rate will remain level for the remaining lifetime of the policy. 

Dividends on VA Term Policies With “Capped” Premiums 

One consequence of “capping” premiums on term policies is a reduction in dividends that a 

policyholder receives. Dividends are a refund of excess premiums paid that are not needed to pay 

for the costs of death claims. Since term policyholders over the age of 70 had their premiums 

reduced as a result of the “capping”, less premiums are received. For this reason, a reduction had 

to be made to dividends paid on term policies that have had their premiums capped. This reduction 

was made in order to offset the loss of premium income to the NSLI trust fund. However, it should 

be noted that term policyholders are better off after premium “capping” than before premium 

“capping.” The premium savings realized as a result of the premium “capping” at the age 70 rate is 

greater than the amount by which dividends are reduced. 

Long-term Cost of Term Policies 

NSLI term policies have been in effect for more than 50 years. 

• The total amount of premiums paid, or net premiums paid (premiums minus dividends), 

very often exceeds the face amount of insurance, which is not unusual for term insurance. 

• However, in return for their premiums, those insureds received many years of insurance 

protection. 
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

 Visit our Website: www.insurance.va.gov 

55 

The Importance of “Net” Payment Cost of Insurance 

When looking at the cost of a term policy, the following should be kept in mind: 

1. the premiums paid on the policy 

2. the dividends received on the policy 

The “net” payment on the policy is the premiums paid on the policy minus the dividends received 

on the policy. 

Consider the following typical NSLI term policy: 

Veteran’s 

Age 

Amount of 

Insurance 

Number of 

Years Policy 

is in Effect 

Total 

Premiums 

Paid on 

Policy 

Total 

Dividends 

Received on 

Policy 

“Net” 

Payments on 

Policy 

82 $10,000 60 years $18,500 $9,000 $9,500 

The resulting “net” payment on this policy (premiums minus dividends) is $9,500. This 

policyholder received 60 years of insurance protection for a net cost of $9,500, an average of $158 

per year. 

Excess Revenues Returned as Dividends 

VA does not make any profit on NSLI. 

• The law specifies that NSLI be operated as a Trust Fund. Its revenues are used exclusively for 

the benefit of its policyholders and may not be used for any other government program. 

• Any excess revenues resulting from favorable experience are returned to NSLI policyholders in 

the form of dividends. 

The Cost of Declaring All NSLI Term Policies “Paid-up” 

The VA Insurance Service has examined the option of declaring all NSLI term policies “paid-up”. 

In other words, policyholders would no longer have to pay premiums. However: 

• the federal outlay which would be required to accomplish this is approximately $637 million. 

There are currently about 188,000 NSLI term policyholders. 

• since the NSLI program is, by law, self-supporting, it appears unlikely that these policies will 

be declared paid-up, in light of the large cost involved. 
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

 Visit our Website: www.insurance.va.gov 

56 

VA Regulation Provides Paid-Up Insurance on VA Term Policies 

In 2000, the Department of Veterans Affairs put into effect a regulation to provide paid-up 

insurance on term policies. Prior to this regulation, term policies did not have paid-up insurance. 

• Under the regulation, veterans who have NSLI term insurance (renewal age 71 or older) 

and decide to stop paying premiums on their policies are given a termination dividend that 

is used to purchase a reduced amount of paid-up insurance. 

• This paid-up insurance insures the veteran for life and no premium payments are required. 

The amount of insurance remains level. 

• The amount of paid-up insurance depends on the age of the veteran at the time he stops 

paying his term premiums. A veteran age 80 with $10,000 of insurance would receive 

about $4,500 of paid-up life insurance. (See table below.) 

• This paid-up insurance has cash values, which increase each month. 

• This paid-up insurance continues to pay dividends. 

• The insured can cash surrender these paid-up additions at any time. 

An insured over the age of 71 who has a $10,000 term NSLI policy and decides he or she no longer 

wants to pay premiums can do so. The policy automatically has a termination dividend on that 

date and that termination dividend will be used to purchase a limited amount of paid-up insurance 

(PUA). The following table illustrates the termination dividend and amount of PUA that the 

termination dividend can purchase at various attained ages for such an insured. 

Insured’s age at 

policy lapse 

Basic insurance 

amount at policy 

lapse 

Termination 

dividend at date of 

lapse* 

Amount of PUA 

purchased with 

the termination 

dividend*

72 $10,000 $367 $602 

75 10,000 1,494 2,284 

80 10,000 3,212 4,452 

85 10,000 4,786 6,109 

90 10,000 6,249 7,421 

95 10,000 8,887 9,331 

*

All figures are rounded to whole dollars. 
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

 Visit our Website: www.insurance.va.gov 

57 

Payment of Premiums 

Methods Of Payment 

An insured has several options for paying 

premiums: 

• Direct payment (a check or money 

order payable to the Department of 

Veterans Affairs) 

• Allotment from military retirement pay 

• Deduction from VA benefits (if they 

are receiving VA pension or 

compensation) 

• Deduction from the insured’s checking 

account (VA MATIC) 

∗ Paying premiums by allotment, 

deduction or VA MATIC protects against lapse. These options also save premium payment 

costs such as checks or money orders and postage. 

• Applying annual dividends to automatically pay premiums. 

∗ Insureds who apply their dividends to pay premiums also receive the same lapse protection 

and payment savings, provided their dividend is sufficient to pay the full annual premium. If 

it is not, the insured is billed for the difference. 

Other Payment Options Available 

An insured may provide for advance premium payments to be made quarterly, semiannually, annually, 

or as far in advance as the insured wishes. Insureds who pay premiums in advance benefit from: 

• a premium discount 

• a reduction of the insured’s risk of lapse due to non-payment of premiums, and 

• a savings in premium payment costs. 

Premium Due Dates 

Premiums are due the same day of the month as the day the policy became effective as shown on the 

insurance policy (called the “anniversary date”). If the policy was effective on the first day of the 

month, premiums are due on the first day of the month. For any month not having a date 

corresponding to the effective date of a policy (i.e., 29th, 30th, or 31st), the due date is always the last 

day of the month. 

Grace Period 

Insureds are allowed 31 days after the due date to pay any premium except the first one. If the 

insurance becomes a claim (insured dies) during the grace period, the unpaid premium will be 

deducted from the amount payable to the beneficiary. 

Distribution of Methods of Premium Payments 

September 30, 2008

Waiver

9%

PAID-UP Policies

33%

Direct Payment*

39%

Deduction from 

VA benefits

8%

Allotment from 

service or 

retirement pay 7%

VA MATIC

4%

* Included in Direct Payments are policyholders who apply their annual

 dividends to automatically pay premiums.
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

 Visit our Website: www.insurance.va.gov 

58 

WAIVER OF PREMIUMS 

Waiver Of Premiums 

A waiver of premiums provision is included, at no extra cost, on the following policies: 

• NSLI 

• USGLI (except endowment at age 96) 

• VSLI 

• VRI 

• S-DVI policies (except supplemental S-DVI coverage) 

Currently, there are 101,436 veterans whose premiums are being waived (9 percent of all 

policyholders.) 

Eligibility For Waiver Of Premiums 

To qualify for a waiver of premiums: 

• The insured must be totally disabled; this means they have a mental or physical disability that 

prevents them from engaging in substantially gainful employment. 

• The total disability must begin before the insured’s 65th birthday, and must continue for at 

least six consecutive months. 

• The total disability may not begin prior to the effective date of the policy. (Exception: waiver 

may be granted if total disability commenced prior to the effective date only on S-DVI policies, 

provided the total disability is due to a service-connected disability.) 

Application For Waiver Of Premiums 

To apply for a waiver of premiums an insured should: 

• File VA Form 29-357, Claim for Disability Insurance Benefits. (However, any 

communication that shows intent to apply for the benefit, either expressed or implied, will 

be accepted as an informal claim.) 

• File promptly because, in most cases, premiums can only be waived up to one year prior to 

receipt of a claim. The only instance when premiums can be waived beyond one year is if 

the evidence shows circumstances beyond the insured’s control prevented the filing of a 

timely claim. This usually means a mental disability. 

Once waiver is granted, it is subject to review at regular intervals. The waiver can be terminated at 

any time if the insured returns to gainful employment, recovers from his or her disability, or fails to 

cooperate in the review procedure. 

For more detailed information, see VA pamphlet 29-14 (revised January 1979), Information About 

Waiver Of Premiums And Total Disability Income Provision. 
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

 Visit our Website: www.insurance.va.gov 

59 

Dividend Options 

The amount of dividend paid to a veteran depends on the age of the veteran, the type of insurance, and 

the length of time the policy has been in force. Dividends are paid on the following programs: 

• United States Government Life Insurance (“K”) 

• National Service Life Insurance (“V”) 

• Veterans’ Special Life Insurance (“RS” and “W”) 

• Veterans’ Reopened Insurance (“J,” “JR” and “JS”) 

Dividend Options Available 

A policyholder may choose from several dividend options that are available: 

• Cash: Paid to policyholder by U.S. Treasury check or directly deposited into the 

policyholder’s bank account. 

• Credit: Held in an account for the insured with interest 

° Can be used to prevent policy lapse 

° Will be refunded upon the insured’s 

request 

° Will be included in the award to the 

beneficiary(ies) at the time of the 

insured’s death 

• Deposit: Held in an account for insured 

with interest 

° Available only on permanent plan 

policies 

° Can be used, with the net cash value, to purchase reduced paid-up insurance, or extended 

insurance if the policy lapses - except for "K" or "JS" policies (see page 64 for more 

information about reduced paid-up and extended insurance) 

° Will be refunded upon the insured’s request 

° Will be included in the award to the beneficiary(ies) at the time of the insured’s death 

• Premium: Applied to pay premiums in advance 

Dividend Credit and Deposit Interest Rates

 Program 2009

 USGLI (K) 5.00% 

 NSLI (V) 5.25% 

 VSLI (RS & W) 6.00% 

 VRI (J, JR, JS) 5.50%
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

 Visit our Website: www.insurance.va.gov 

60 

• Paid-up Additions (PUA'S): Used as a net single premium to purchase additional paid-up 

insurance 

° Available only on “V,” “RS,” “W,” “J,” “JR” and “JS” policies 

° Will be whole life if the basic insurance is a term or whole life policy 

° Will be endowment if the basic insurance is an endowment policy 

As of September 30, 2008, 348,802 veterans have policies with paid-up additions totaling 

$6,566,851,253. 

• Indebtedness: Applied toward a loan or lien on a policy 

• Net Cash: Used to pay an annual premium with any remainder paid to the policyholder under 

the cash option 

• Net PUA: Used to pay an annual premium with any remainder used to purchase paid-up 

additional insurance 

• Net Loan-Lien: Used to pay an annual premium with any remainder used to reduce an 

outstanding loan or lien 

Distribution of Dividend Options 

September 30, 2008

Cash

48%

Net Loan-Lien

1%

Premium

2% Deposit

1%

Credit

11%

Paid-up 

Additions

21%

Indebtedness

2%

Net Cash

7%

Net PUA

7%

Dividends were paid on 1,255,700 

policies during Fiscal Year 2008
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

 Visit our Website: www.insurance.va.gov 

61 

ESTIMATED DISTRIBUTION OF 2009 DIVIDENDS BY STATE OF RESIDENCE 

 USGLI NSLI VSLI VRI TOTAL

NO. OF 

INSUREDS 

AMOUNT OF 

DIVIDENDS*

NO. OF 

INSUREDS 

AMOUNT OF 

DIVIDENDS*

NO. OF 

INSUREDS 

AMOUNT OF 

DIVIDENDS*

NO. OF 

INSURED

S 

AMOUNT OF 

DIVIDENDS*

NO. OF 

INSUREDS 

AMOUNT OF 

DIVIDENDS*

 

Alabama 71 $8 9,849 $3,220 1,718 $698 355 $86 11,993 $4,012 

Alaska 6 1 898 316 152 70 25 5 1,081 392 

Arizona 143 20 18,418 5,836 3,350 1,328 652 164 22,563 7,348 

Arkansas 67 8 6,226 1,971 1,101 435 236 58 7,630 2,472 

California 1,151 161 80,507 26,376 14,732 6,122 2,457 596 98,847 33,255 

Colorado 98 17 12,999 4,161 2,299 953 378 95 15,774 5,226 

Connecticut 55 7 13,448 3,934 3,023 1,248 750 183 17,276 5,372 

Delaware 18 2 2,709 798 581 217 102 25 3,410 1,042 

D. of Columbia 18 3 1,321 454 253 111 44 9 1,636 577 

Florida 503 69 71,151 22,880 13,919 5,680 3,461 830 89,034 29,459 

Georgia 106 14 16,463 5,338 3,301 1,339 570 140 20,440 6,831 

Hawaii 23 4 5,435 2,293 1,641 766 245 52 7,344 3,115 

Idaho 25 3 3,805 1,131 639 269 152 37 4,621 1,440 

Illinois 132 14 31,476 9,670 9,116 3,867 861 228 41,585 13,779 

Indiana 53 5 12,060 3,582 2,835 1,133 340 85 15,288 4,805 

Iowa 67 8 9,522 3,039 2,096 948 295 79 11,980 4,074 

Kansas 45 5 7,894 2,437 1,519 649 222 60 9,680 3,151 

Kentucky 46 6 7,405 2,321 1,498 598 304 74 9,253 2,999 

Louisiana 49 6 8,073 2,619 1,710 736 342 86 10,174 3,447 

Maine 15 3 4,293 1,258 910 345 180 44 5,398 1,650 

Maryland 106 19 16,085 5,411 2,998 1,258 580 145 19,769 6,833 

Massachusetts 95 12 22,868 6,209 5,533 2,144 1,870 438 30,366 8,803 

Michigan 93 8 23,600 6,537 5,714 2,196 860 206 30,267 8,947 

Minnesota 73 9 18,152 5,209 3,570 1,398 769 173 22,564 6,789 

Mississippi 26 4 5,171 1,685 849 344 167 45 6,213 2,078 

Missouri 95 11 15,521 4,615 3,441 1,377 504 128 19,561 6,131 

Montana 16 2 3,264 1,011 583 249 90 21 3,953 1,283 

Nebraska 40 4 5,683 1,761 1,126 509 282 77 7,131 2,351 

Nevada 58 8 5,422 1,635 1,144 433 227 54 6,851 2,130 

New 

Hampshire 

18 3 4,414 1,303 1,020 386 168 38 5,620 1,730 

New Jersey 90 10 26,167 7,830 7,856 3,181 1,944 488 36,057 11,509 

New Mexico 34 5 5,234 1,715 916 372 179 44 6,363 2,136 

New York 110 12 49,536 15,024 13,613 5,574 3,625 881 66,884 21,491 

North Carolina 136 18 18,158 5,954 3,875 1,669 671 170 22,840 7,811 

North Dakota 11 2 2,043 589 444 176 110 27 2,608 794 

Ohio 93 9 30,777 9,005 6,363 2,507 1,385 335 38,618 11,856 

Oklahoma 55 8 8,121 2,536 1,248 505 290 68 9,714 3,117 

Oregon 144 18 10,719 3,324 1,794 706 305 75 12,962 4,123 

Pennsylvania 122 11 44,541 12,584 10,089 3,821 2,320 552 57,072 16,968 

Rhode Island 25 3 3,720 991 773 290 250 56 4,768 1,340 

South Carolina 81 11 10,330 3,320 2,188 878 309 76 12,908 4,285 

South Dakota 14 2 2,538 758 596 263 124 30 3,272 1,053 

Tennessee 89 10 11,236 3,548 2,335 939 436 115 14,096 4,612 

Texas 318 59 43,010 14,079 7,312 2,986 1,201 302 51,841 17,426 

Utah 44 7 5,588 1,625 1,030 392 212 50 6,874 2,074 

Vermont 7 1 1,876 567 440 173 49 12 2,372 753 

Virginia 281 48 21,573 7,480 3,588 1,472 605 148 26,047 9,148 

Washington 269 36 18,489 5,798 2,794 1,098 538 130 22,090 7,062 

West Virginia 22 2 3,721 1,142 961 373 190 46 4,894 1,563 

Wisconsin 74 6 18,025 5,349 4,077 1,637 737 175 22,913 7,167 

Wyoming 5 1 1,462 458 272 118 45 11 1,784 588 

U.S. Possess. 4 1 1,212 419 210 86 164 38 1,590 544 

Canada 3 0 537 186 109 45 13 2 662 233 

Philippines 0 0 93 26 8 3 3 1 104 30 

Foreign 6 1 1,242 483 277 130 34 7 1,559 621 

 

TOTAL 5,348 $725 784,080 $243,800 165,539 $67,200 33,227 $8,100 988,194 $319,825 
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

 Visit our Website: www.insurance.va.gov 

62 

*

AMOUNT OF DIVIDENDS is in thousands of dollars 
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

 Visit our Website: www.insurance.va.gov 

63 

Dividend Hoax --- Don't Believe It 

False dividend announcements which declare that Congress has recently passed a bill which entitles 

veterans and service members to a dividend based upon their prior years of service, are part of a 

recurring problem of misinformation that dates back to 1965. Unfortunately, this misinformation 

unnecessarily raises the expectations of veterans and service personnel and detracts from our ability to 

serve our veterans. 

The dividend "hoax", as we refer to it, had its origins in a special dividend that the Department of 

Veterans Affairs (VA), then known as the Veterans Administration, did pay to World War II veterans 

who had National Service Life Insurance policies. Approximately $2.7 billion was paid in 1950 to 

over 16 million of these veterans under the "1948 special dividend." 

Some time in 1965, the special dividend news announcements of 15 years earlier resurfaced and were 

mistakenly published by several newspapers. The special dividend had already been paid out to 

virtually all eligible government life insurance policyholders and there was no new special dividend. 

VA moved quickly to educate the news media, but some well-meaning individuals and organizations 

began to publish the announcements in smaller publications, newsletters and flyers. The actual scope 

of the original dividend became fictionalized and some publications declared the dividend available to 

all veterans (not just World War II) and even to those who never carried government life insurance 

while in the service. The latest rumor is that active servicepersons, reservists and persons separated 

within the last few years are eligible. 

The 1948 special dividend program required veterans to apply for the payment. Over the years the 

dividend story has prompted hundreds of thousands of veterans and current service members to write 

and "apply" for this benefit. Although the number of letters has fluctuated, we have received as many 

as 15,000-20,000 inquiries per week about this dividend in the past. Because of the volume of these 

requests for a nonexistent benefit, Congress passed a law in 1970 that prohibited payment of any 

special dividend declared prior to 1952 unless the application was received before 1954. There has 

been no recent legislation authorizing any "special" dividends. 

Dividends are not payable to current service members insured under Servicemembers’ Group Life 

Insurance (SGLI) or Veterans' Group Life Insurance (VGLI). SGLI and VGLI are group term policies 

and do not pay dividends. 

For your information, VA continues to pay routine dividends on several policy series, but only to 

veterans who have kept their policies in force. These veterans receive their dividends automatically on 

the anniversary date of their individual policy. They do not have to apply. 
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

 Visit our Website: www.insurance.va.gov 

64 

The following is an example of a typical application for this special dividend: 

GOVERNMENT OWES VETERANS MONEY

A bill passed in Congress gives Veterans a dividend of 55 cents to $1,000 of their G. I. Insurance for 

each month of service. This is regardless of whether or not you still carry this insurance. You will 

not receive this dividend unless you ask for it. The Veterans Administration urges you to apply 

regardless of whether you had insurance or not. They will check for you. 

Years of Service 2 years $264

3 years $316

4 years $528

Veterans Center 

P.O. Box 8075 

Philadelphia, PA 19101 

Include Your: 

Name 

Address 

GI Insurance No. (if known) Birthdate 

Branch of Service Service Number 

Enlistment Date Discharge Date 

***********IF YOU KNOW OF ANY VETS - PASS THE WORD************

I would like to take advantage of the G.I. Insurance Dividend now being offered to Veterans. Please 

send any monies that I qualify for to the address below: 

Respectfully: 

 Name 

 Address 

Date 

*******IF YOU KNOW OF ANY VETS - PASS THE WORD*******

This is the response that VA sends to a veteran who submits such an application for this “special 

dividend”: 

A false and misleading rumor sweeping the nation is plaguing us at the Department of Veterans Affairs and 

leading thousands of veterans such as you to write us requesting dividends on insurance that you may have had in 

force while on active duty in the U.S. Armed Forces. 

Congress did not pass any new law giving veterans a dividend based on the amount of months their 

insurance was in force while on active duty. The information you received regarding such a dividend is a 

hoax.

Also false is the rumor that individuals who are currently serving or who served in the military after 1965 and are 

or were insured under the SGLI (Servicemembers’ Group Life Insurance) program are entitled to a refund. There 

have never been any dividends, rebates or refunds due to surplus funds in the SGLI program. 

You can help us to eliminate these rumors by passing this information along to any of your friends or to any 

veterans’ group to which you belong. 

Thank you. SGL 300 

Department of Veterans Affairs Ed 2/93 

H

O

A

X

H 

O 

A 

X 
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

 Visit our Website: www.insurance.va.gov 

65 

Guaranteed Values 

An important feature of permanent plan policies is that the premiums the policyholder pays build up 

a reserve (cash) value. This provides the policyholder with extra protection and more 

financial flexibility. Permanent plan policies have the following guaranteed values:

• Cash Value 

The cash value is the reserve plus any dividends held on deposit less any 

indebtedness. If a policyholder is considering surrendering their policy for its cash value, 

they should first consider the alternative of taking a policy loan, since policies that are 

surrendered for cash cannot be reinstated. 

After premiums have been paid or waived for at least one year, the policyholder may apply 

for the cash value by submitting a completed VA Form 29-1546, Application for Cash 

Surrender Value or Policy Loan, or a written request stating the insured’s wish to surrender 

the policy for the cash value. 

• Loan Value 

Policy loans may be granted up to 94 percent of the reserve value, less any indebtedness. We 

suggest applying for a policy loan rather than the cash surrender value if a policyholder needs 

cash and the policy is not lapsed. After premiums have been paid or waived for at least one 

year, the policyholder may apply for a loan by submitting VA Form 29-1546, Application for 

Cash Surrender Value or Policy Loan, or a written request for a policy loan, specifying the 

amount desired. (See pages 65-66 for loan rates and additional information.) 

• Extended Insurance 

A permanent plan policy that lapses after being in force for at least three months will 

automatically be extended as term insurance. Under this insurance the policyholder will be 

protected for a limited period of time as determined by the amount of the net cash value of 

the policy. The amount of the extended insurance will be the face amount of the policy less 

any indebtedness. 

• Reduced Paid-Up Insurance 

A policyholder may use the net cash value (cash value minus any indebtedness) to buy a 

reduced amount of paid-up insurance if the policy is not lapsed. This insurance will remain 

in force for the life of the policyholder, or to the end of the endowment period. No further 

premium payments are required. The cash value continues to increase and dividends 

continue to be earned. The policyholder may cash surrender the paid-up insurance for less 

than the face value of the policy, depending on the length of time the policy has been in 

effect. The policyholder can also obtain a loan on the policy at any time. 
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

 Visit our Website: www.insurance.va.gov 

66 

Policy Loans 

Policy loans are available on permanent plans of insurance. 

• The policyholder can take up to 94% of the reserve (cash) value of their 

policy less any indebtedness.

• The policy cannot be lapsed, and premiums must be paid or waived at least 

one year before a policy has loan value. 

Loan Interest Rates 

• As of November 2, 1987, all new policy loans have a variable interest rate with a minimum

rate of 5% and a maximum rate of 12%. 

• Rate changes are tied to the “ten-year constant maturities”, a U.S. Treasury securities index. 

• Each year the U.S. Treasury securities index is reviewed. If required, because of a change 

in the index, loan rates are adjusted effective October 1. 

The current loan interest rate for adjustable rate loans is 5% (until at least 

September 30, 2009). 

Interest Rates on NSLI Policy Loans∗

Prior to Jan. 11, 1971 4% 

Jan. 11, 1971 - Jul. 28, 1981 5% 

Jul. 29, 1981 - Nov. 1, 1987 11% 

Nov. 2, 1987 - Sept. 30, 1992 8% 

Oct. 1, 1992 - Sept. 30, 1993 7% 

Oct. 1, 1993 - Sept. 30, 1995 5% 

Oct. 1, 1995 - Sept. 30, 1998 6% 

Oct. 1, 1998 - Sept. 30, 2000 5% 

Oct. 1, 2000 - Sept. 30, 2001 6% 

Oct. 1, 2001 - Sept. 30, 2009 5% 

*Interest on USGLI ("K" prefix) loans is fixed, by law, at 5%. 

-
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

 Visit our Website: www.insurance.va.gov 

67 

Applying For a Policy Loan 

A policyholder can now apply for a loan through two methods: 

• Filing VA Form 29-1546, Application for Policy Loan. This application can either be 

faxed toll-free to 1-888-748-5828 or mailed to: 

Department of Veterans Affairs 

Regional Office and Insurance Center 

P.O. Box 7327 

Philadelphia, Pennsylvania 19101 

• Policyholders can now also apply for a policy loan by going to the VA insurance website at 

www.insurance.va.gov and following the link to “Online Policy Access.” The insured 

must have applied for, and received, a VA-issued PIN. Once they have received their PIN, 

they must also select a personal password to access the policy loan request page. See page 

83 for more information on “On-line Policy Access.” 
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

 Visit our Website: www.insurance.va.gov 

68 

Conversions 

Advantages Of Converting To A Permanent Plan 

Term insurance is attractive at young ages because it gives low-cost financial protection. 

However, at the older ages it becomes very expensive, making the premiums difficult to pay. 

Policyholders who think they will want insurance protection at the older ages, should consider 

converting to a permanent plan of insurance at as young an age as possible. Although the premium 

rates are initially higher than for term policies issued at the same ages, permanent plan premiums 

stay the same throughout the life of the policy. 

Policyholders who are considering converting to a permanent plan should consider the following: 

• Their present and future needs for life insurance 

• Their ability to pay present or future premiums 

• The earlier they convert to a permanent plan, the lower the premium will be 

(Permanent plans that are available for conversion from a term plan are discussed on pages 

52 and 53.) 

The guaranteed conversion of a term policy to a permanent plan policy is an important feature for 

policyholders, especially for those policyholders who have health problems. A policyholder can 

convert from a term policy to a permanent plan policy without providing evidence of good health. 

Application For Conversion 

A policyholder can apply for conversion by submitting VA Form 29-0152, Application for 

Conversion, or a written request for conversion specifying the plan desired and the amount of 

insurance to be converted. 

If the term policy is lapsed but eligible for reinstatement, the policyholder must apply for 

reinstatement and meet health requirements. The applications for reinstatement and conversion 

should be submitted at the same time. 

Term insurance may be converted to permanent plan insurance in multiples of $500 but not less 

than $1,000. A policyholder can convert either a portion of their term coverage or the total 

amount. 

Payment Of Premiums 

If the policyholder pays by check, at least one monthly premium for the new plan should 

accompany the conversion application. 

If premiums are paid by deduction from VA benefits, allotment from retired pay, or by deduction

from the insured’s checking account (VA MATIC), VA will take care of any change in deduction 

or allotment that is needed. If the new premium exceeds the amount available by deduction or 

allotment, future premiums must be paid by check or other remittance. 
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

 Visit our Website: www.insurance.va.gov 

69 

 Paid-Up Additional Insurance 

Availability Of Paid-Up Additional Insurance (Paid-Up Additions) 

Since July 1, 1972, policyholders with participating policies can apply their annual dividends to 

purchase paid-up additional insurance (PUA). Paid-up additions are available on the following 

programs: 

• National Service Life Insurance (“V”) 

• Veterans’ Special Life Insurance (“RS” and “W”) 

• Veterans’ Reopened Insurance (“J,” “JR” and “JS”) 

Annual Insurance Policy Statements are mailed to policyholders each year on the anniversary date 

of their policy. In addition to policy information, the annual statement reflects any new paid-up 

additions credited to the policyholder's account. (See page 68 for more information on the Annual 

Insurance Policy Statement.) 

Paid-Up Additional Insurance: A Way Of Increasing Coverage 

Purchasing paid-up additions is the only way policyholders can increase their coverage (except for 

supplemental S-DVI). It is therefore, a very popular 

dividend option. Approximately 349,000 veterans have 

policies with paid-up additions, representing $6.6 

billion of extra coverage. 

How PUA Works 

If an insured chooses this option, his or her annual dividend is automatically applied as a single 

premium to purchase an amount of paid-up insurance. The amount of paid-up insurance is 

determined by: 

• the age of the policyholder, and

• the plan of basic insurance in force, and

• the amount of the dividend. 

Paid-up additions have cash 

and loan values, and earn 

dividends that automatically 

purchase more paid-up 

coverage. 
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

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70 

The following table illustrates the amount of paid-up additional insurance that can be purchased 

using the same dividend amount but at different attained ages: 

Amount of Whole Life PUA Purchased Attained Age Dividend Amount 

“V”, “RS”, “W”, “J” “JR”, JS” 

70 $300 $517 $477 

75 $300 $459 $434 

80 $300 $416 $399 

The paid-up additional coverage purchased is of the same type as the basic coverage: 

If the basic coverage is: the PUA coverage purchased is: 

endowment paid-up endowment insurance which matures at 

the same time as the basic contract 

all other plans (including term) paid-up whole life insurance 

The PUA dividend option is especially desirable for: 

• Disabled policyholders who often cannot obtain commercial life insurance, or must pay 

high premiums for coverage. In many cases, this is the only means by which they can 

obtain additional life insurance. 

• Policyholders who do not need extra coverage but want to lower their premiums by 

periodically reducing their basic insurance as new paid-up additions are purchased. (They 

keep the same amount of coverage but pay premiums on a smaller portion of that coverage.) 

• Term policyholders whose premiums continue to rise as they become older. (They too can 

reduce their basic insurance and replace it with paid-up additions, thereby paying premiums 

on a smaller portion of coverage). 

Since the PUA dividend option first became available in July 1972, an NSLI policyholder (now 

age 87) with a $10,000 Ordinary Life policy issued in 1945 could have purchased $58,249 of extra 

coverage. 

Changes In PUA Amounts And Cost 

Because reserves on paid-up additions had earned higher interest rates, the following changes were 

made at no cost to the policyholders: 

• In 1987, and again in 1990, the cost to purchase paid-up additions with annual dividends 

was lowered, i.e., more PUA could be purchased with the same amount of dividends. 

These decreases resulted in approximately a 25 percent reduction in the cost to purchase 

paid-up additions with annual dividends. 

• Also, existing paid-up additions were automatically increased by approximately 25 percent 

(over $770 million) overall. The increase for individual policies depended on the 

policyholder’s age and plan of insurance. 
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

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71 

Annual Insurance Policy Statement 

The Annual Insurance Policy Statement provides an insured with information about their VA 

insurance including: 

• The type of policy and effective date of the policy 

• Amount of insurance (Basic and Paid-Up Additions) 

• Cash and loan values 

• Outstanding indebtedness 

• Premium information 

• Dividend information 

• Date of the latest beneficiary designation 

An Annual Statement is mailed to the insured on the policy anniversary date of each policy. 

THIS IS NOT A BILL 

ANNUAL INSURANCE POLICY STATEMENT

POLICYHOLDER FILE NUMBER POLICY NUMBER MAILING DATE 

JOHN Q VETERAN F V 0000 00 00 V 0000 00 00 01/17/09 

2009 POLICY INFORMATION 

PLAN 

ORDINARY LIFE 

Basic $10,000 

Paid-Up Additions - Whole Life - $39,836 

Effective Date 1/21/59 

TOTAL COVERAGE $ 49,836 

CASH/LOAN 

VALUES 

Values As Of 02-20-08 

Basic Policy $ 6,806.37 

Paid Up Additions $ 24,903.48 

TOTAL NET CASH VALUE $ 31,709.85 

TOTAL NET LOAN VALUE $ 29,807.26 

The current estimated amount to be paid to 

survivors is shown below: 

Survivor Benefit $ 49,836.00 

PREMIUMS Basic 

PREMIUM 

$124.20 

MODE 

Annual 

HOW PAID 

Direct 

OTHER DATA 

A. 

LOANS/ 

LIENS 

TYPE INTEREST RATE PRINCIPAL 

Loan 5% $ 3,596.99 

TOTAL PRINCIPAL $ 3,596.99 

B. 

DIVIDEND 

OPTION 

Current option: NET PUA 

Your 2009 dividend of $1,374.84 paid 1/17/09 was applied under the Net PUA option. A letter 

regarding payment of this dividend was sent under separate cover. 

INSURANCE DIVIDENDS ARE NOT SUBJECT TO FEDERAL INCOME TAX 

C. We added new features to our web site, WWW.INSURANCE.VA.GOV. You may now access 

your beneficiary designation and apply for a policy loan online. You may also access current 

information about your policy. Click on the link, “Online Policy Access”. You may obtain the 

Personal Identification Number (PIN), which is needed to log on, at this web site. The PIN will be 

mailed to you. 

D. The current interest rate for new loans, and existing variable rate loans is 5%. This rate will 

remain in effect until October 1st, when it is subject to change. To apply for a loan, send a 

request over your signature to: P.O. Box 7327, Philadelphia, PA 19101-7327. 

BENEFICIARY INFORMATION 

Your last beneficiary designation of record was made in 2008. 

If you have any questions, call 1-800-669-8477 or visit us at www.insurance.va.gov

VA FORM 

JAN 1994 29-0258
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

 Visit our Website: www.insurance.va.gov 

72 

Beneficiary and Option Designations 

Beneficiary Selection 

An insured may select any person, firm, corporation or other legal entity (including his or her 

estate) as beneficiary, either individually or as trustee. If no beneficiary survives the insured, 

payment is made to the insured's estate in one sum. The insured also has the right to select how 

the insurance proceeds will be paid to his or her beneficiary(ies). 

The Insured Has The Right To Name And Change A Beneficiary 

The insured is the sole owner of his or her policy. This ownership means: 

• The insured can at any time change his or her beneficiary(ies), without the knowledge 

or consent of the current beneficiary(ies). 

• A state court order, property settlement, or divorce decree cannot compel an insured 

to name or change his or her beneficiary(ies). 

• Ownership of the policy may not be transferred to any other person or entity, 

including a trust. However, a trust may be designated as beneficiary.

• A beneficiary change cannot be made by Last Will and Testament. 

• A beneficiary designation should not contain language that restricts the insured’s right 

to change the beneficiary, or remove the insured as owner of the insurance policy. 

Settlement Options Available For Payment Of Policy Proceeds 

The insured has the right to select how the insurance proceeds will be paid to his or her 

beneficiaries. An option change can be made by Last Will and Testament. Most VA Forms 

contain a preprinted “Lump Sum” in the option block because most insureds choose this option. 

If the insured wants the beneficiary to receive monthly installments rather than a lump sum, the 

“Lump Sum” must be crossed off and replaced by the desired option (2, 3 or 4). The settlement 

options available for payment of policy benefits are: 

Option 1: Lump sum payment for the face amount of the policy less any indebtedness. 

Option 2: Equal monthly installments with interest over 36 to 240 months. (The insured 

selects the number of monthly installments in multiples of 12, such as 36, 48, 60, 

72, etc.) 

Option 3: A monthly life income with 120 payments guaranteed (240 for USGLI policies). 

Option 4: Equal monthly installments are made until the face amount of the policy less any 

indebtedness is paid. If the principal beneficiary lives beyond this period, payments 

continue throughout their lifetime. 

It should be noted that although payments under Option 3 may be higher than those under Option 

4, if payments are being made under Option 3 and the principal beneficiary dies soon after the 
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

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73 

guaranteed payments are made, no further payments will be made to a contingent beneficiary, 

even if the full face amount of the policy less any indebtedness has not been paid. However, 

under option 4, payments would continue to the contingent beneficiary until the face amount of 

the policy has been paid. 

If A Beneficiary Dies Before Receiving The Insurance Proceeds 

General information:

If a beneficiary survives the insured but dies before he or she receives some or all of the proceeds, 

the following rules apply: 

• If the proceeds were payable under an installment option, and the beneficiary dies before all of 

the guaranteed installments are paid, the present value of the unpaid installments is payable in 

one sum to the insured’s estate (NSLI policies) or to the estate of the last surviving beneficiary 

(USGLI policies). 

• If the proceeds are payable in a lump sum payment, the proceeds are paid to the beneficiary’s 

estate. To allow the proceeds go to the contingent beneficiaries in a “common disaster” 

situation, rather than to the principal beneficiary’s estate, the phrase “provided the principal 

beneficiary survives me for___ days” may be added. Any number of days up to a maximum of 

30 may be shown. 

Special circumstances involving children of a beneficiary:

If the insured designated more than one principal beneficiary or designated both principal and 

contingent beneficiaries, the share of a beneficiary who predeceases the insured will be paid to the 

surviving beneficiaries according to the pre-printed phrase on the application “or to the 

survivor(s)”. If this automatic distribution is not desired, the insured can cross it out or 

designate that the share of a deceased beneficiary go to that beneficiary’s “issue” (children). 

This is referred to as a “per stirpes” distribution. These situations are illustrated below: 

4. BENEFICIARY DESIGNATION

A. SHOW FULL NAME AND ADDRESS OF 

EACH BENEFICIARY ENTERED IN THE 

PRINCIPAL AND CONTINGENT 

BENEFICIARY AREAS BELOW

B. BENEFICIARY’S 

SOCIAL 

SECURITY NO. 

(If known. See 

instruction No. 5 

on reverse) 

C. RELATIONSHIP 

TO INSURED 

D. SHARE 

TO EACH 

(Use 

fractions, 

such as 1/2, 

2/3, or “all”)

E. OPTION 

FOR EACH 

PRINCIPAL 

Ann Jones 

123 Any Street 

Anywhere, USA 00000

000-00-0000 Daughter 1⁄2 LUMP 

SUM 

Bill Smith 

123 Any Street 

Anywhere, USA 00000

000-00-0000 Son 1⁄2 LUMP 

SUM 

OR TO SURVIVOR(S) LUMP 

SUM 

CONTINGENT 

(Person(s) who get proceeds if all of the 

Principal Beneficiaries die before the insured. If 

none, write “none“)

None 

OR TO SURVIVOR(S) LUMP 

SUM

5. REMARKS (Include any additional information which will clarify your intent regarding the 

payment of your insurance. Also, list the policy number of any other policy on which the 

beneficiary is not to be changed) 

In the event my children predecease me I would like their share 

to go to their children

An insured designates his children, Ann and Bill as 

his beneficiaries, each getting 1⁄2 of the insurance 

benefits. Ann has one child and Bill has two 

children. If Ann dies before the insured and before

Bill then 

IF the insured crossed out the phrase “or to the 

survivor(s)” and wrote “the share of a deceased 

beneficiary go to his or her children”, then 

• Ann’s child will get half of the insurance 

benefits 

• Bill will get half of the insurance benefits 

(this is the “per stirpes” distribution) 

IF the insured DID NOT cross out the phrase “or to 

the survivor(s)” nor did he write “the share of a 

deceased beneficiary go to his or her children”, then

• Bill will get all of the insurance benefits 
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

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74 

Designation Of Beneficiary And Optional Settlement (Completing the 

Form) 

It is important that the insured submit a properly completed and updated beneficiary and 

settlement option selection. If the insured is uncertain about his or her beneficiary and option 

designation, he or she can obtain the information from the Insurance Center in Philadelphia. The 

submission of a new designation, reflecting the insured’s current intentions, will replace any prior 

designation for the same policy. 

IMPORTANT - SEE INSTRUCTIONS 

ON REVERSE

OMB Approved No. 2900-0020 

Respondent Burden: 10 minutes 

DESIGNATION OF BENEFICIARY 

GOVERNMENT LIFE INSURANCE

DO NOT WRITE IN SPACE BELOW - FOR VA USE 

ENTERED BY VA DATE RECORDED SIGNATURE OF VA INSURANCE OFFICIAL 

1A. NAME OF INSURED AND MAILING ADDRESS FOR INSURANCE PURPOSES (Type or print)

 Mr. John Smith

(First, middle, last name)

 123 Any Street 2A. INSURANCE FILE NUMBER 

(Number and street or rural route) F V 0000 00 00

 AnyWhere, U.S.A 00000

(City or P.O., State and ZIP Code)

2B. SOCIAL SECURITY NUMBER 

 000 00 0000

3. DAYTIME TELEPHONE NUMBER 

 (Include Area Code) 

 (000) 000-0000

1B. IS THIS A CHANGE OF ADDRESS FOR YOUR INSURANCE  YES  NO 

4. BENEFICIARY DESIGNATION 

A. SHOW FULL NAME AND ADDRESS OF EACH 

BENEFICIARY ENTERED IN THE PRINCIPAL AND 

CONTINGENT BENEFICIARY AREAS BELOW 

B. BENEFICIARY’S SOCIAL 

SECURITY NO. (If 

known. See instruction 

No. 5 on reverse) 

C. RELATIONSHIP TO 

INSURED 

D. SHARE TO EACH 

(Use fractions, 

such as 1/2, 2/3, 

or “all”)

E. OPTION 

FOR EACH 

PRINCIPAL 

Sally P. Smith 

123 Any Street 

Anywhere, USA 00000 

000-00-0000 Wife ALL LUMP 

SUM 

 

OR TO SURVIVOR(S) 

CONTINGENT 

(Person(s) who get proceeds if all of the Principal 

Beneficiaries die before the insured. If none, write “none“)

Ann Jones 

123 Any Street 

Anywhere, USA 00000 

000-00-0000 Daughter 1⁄2 LUMP 

SUM 

Bill Smith 

123 Any Street 

Anywhere, USA 00000 

000-00-0000 Son 1⁄2 LUMP 

SUM 

 

OR TO SURVIVOR(S) 

5. REMARKS (Include any additional information which will clarify your intent regarding the payment of your insurance. Also, list the policy number of any other 

policy on which the beneficiary is not to be changed) 

I understand that this change cancels all prior beneficiary and option selections; and unless indicated in Item 5, Remarks, this change applies to all Government 

Life Insurance policies under the above file number. 

6. SIGNATURE OF INSURED (Do not print) 

(Sign Here)

7. DATE 

1/1/09

8. NAME AND ADDRESS OF WITNESS (Type or print)

Sally P. Smith, 123 Any Street, Anywhere, USA 00000

If you have any questions concerning designating a beneficiary, call us toll free at 1-800-669-8477. 

VA FORM 

JAN 1999 

29-336 SUPERSEDES VA FORM 29-336, OCT 1998, 

WHICH WILL NOT BE USED. 
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

 Visit our Website: www.insurance.va.gov 

75 

The following factors should be kept in mind when completing a beneficiary and option selection 

form: 

• One beneficiary designation applies to all policies unless otherwise specified. VA Form 

29-336, Designation of Beneficiary and Optional Settlement (dated June 1982 or later) 

does not contain a separate block to list the insured’s policy numbers. Unless otherwise 

specified in the remarks block on these forms, a designation applies to all policies. 

• Most VA Forms 29-336 contain a preprinted “Lump Sum” as the option. If the insured 

wants the beneficiary to receive monthly installments rather than a lump sum, the 

“Lump Sum” must be crossed off and replaced by the desired option (2, 3 or 4). If 

option 2 is selected, the number of monthly installments should be shown. Payments 

under this option are 36 to 240, in multiples of 12. 

• A beneficiary change cannot be made by Last Will and Testament. (VA regulations do 

permit an option selection for government life insurance policies to be made by Will.)

• Principal and contingent beneficiaries should be clearly differentiated on the form. Where 

the insured lists multiple principal or contingent beneficiaries, their shares should be clearly 

shown and should always add up to “1” (for example, 1⁄2+1⁄2). 

Policyholders can now view an image of their most recent beneficiary designation online using 

the VA Insurance website. The insured must have applied for, and received, a VA issued PIN. 

Once they have received their PIN, they must also select a personal password to view their 

beneficiary designation. See 83 for more information on “Online Policy Access.” 

Typical INCORRECT Beneficiary Designations 

The following are examples of beneficiary designations that may delay payment of the insurance 

proceeds because the designations are unclear: 

• How did the insured intend for his children to share the proceeds in the following designation? 

4. BENEFICIARY DESIGNATION

A. SHOW FULL NAME AND ADDRESS OF 

EACH BENEFICIARY ENTERED IN THE 

PRINCIPAL AND CONTINGENT 

BENEFICIARY AREAS BELOW

B. BENEFICIARY’S 

SOCIAL SECURITY 

NO. (If known. See 

instruction No. 5 on 

reverse) 

C. RELATIONSHIP 

TO INSURED 

D. SHARE TO 

EACH (Use 

fractions, such 

as 1/2, 2/3, or 

“all”)

E. OPTION 

FOR EACH 

PRINCIPAL 

Ann Jones 

123 Any Street 

Anywhere, USA 00000

000-00-0000 Daughter ALL 

LUMP 

SUM 

Bill Smith 

123 Any Street 

Anywhere, USA 00000

000-00-0000 Son ALL 

LUMP 

SUM 

OR TO SURVIVOR(S) 

CONTINGENT 

(Person(s) who get proceeds if all of the Principal 

Beneficiaries die before the insured. If none, 

write “none“)

Sally P. Smith 

123 Any Street 

Anywhere, USA 00000 

000-00-0000 Wife ALL LUMP 

SUM 

OR TO SURVIVOR(S) 

− If the insured wanted his children to 

share equally he should have written 

“1⁄2” for each child in the SHARE TO 

EACH block. 

− If the insured wanted Ann to be the 

principal beneficiary and Bill to be 

the contingent, then Bill’s 

information should have been written 

in the contingent portion of the 

application. 
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

 Visit our Website: www.insurance.va.gov 

76 

• Who did insured intend as the principal beneficiary to receive the insurance proceeds? 

4. BENEFICIARY DESIGNATION

A. SHOW FULL NAME AND ADDRESS OF 

EACH BENEFICIARY ENTERED IN THE 

PRINCIPAL AND CONTINGENT 

BENEFICIARY AREAS BELOW

B. BENEFICIARY’S 

SOCIAL SECURITY 

NO. (If known. See 

instruction No. 5 on 

reverse) 

C. RELATIONSHIP 

TO INSURED 

D. SHARE TO 

EACH (Use 

fractions, such 

as 1/2, 2/3, or 

“all”)

E. OPTION 

FOR EACH 

PRINCIPAL 

Sam Jones, 

Administrator for my 

estate 

123 Any Street 

Anywhere, USA 00000 

000-00-0000 Friend ALL LUMP 

SUM 

OR TO SURVIVOR(S) 

CONTINGENT 

(Person(s) who get proceeds if all of the Principal 

Beneficiaries die before the insured. If none, 

write “none“)

NONE 

OR TO SURVIVOR(S) 

• VA cannot make a beneficiary use the benefits for any specific purpose designated by the 

insured. 

4. BENEFICIARY DESIGNATION

A. SHOW FULL NAME AND ADDRESS OF 

EACH BENEFICIARY ENTERED IN THE 

PRINCIPAL AND CONTINGENT 

BENEFICIARY AREAS BELOW

B. BENEFICIARY’S 

SOCIAL SECURITY 

NO. (If known. See 

instruction No. 5 on 

reverse) 

C. RELATIONSHIP 

TO INSURED 

D. SHARE TO 

EACH (Use 

fractions, such 

as 1/2, 2/3, or 

“all”)

E. OPTION 

FOR EACH 

PRINCIPAL 

James Jackson who 

will pay my funeral 

expenses 

123 Any Street 

Anywhere, USA 00000 

000-00-0000 Friend ALL LUMP 

SUM 

OR TO SURVIVOR(S) 

CONTINGENT 

(Person(s) who get proceeds if all of the Principal 

Beneficiaries die before the insured. If none, 

write “none“)

NONE 

OR TO SURVIVOR(S) 

• According to the following beneficiary designation, did the insured intend for the proceeds to go 

to his friend, Ann Smith, or does the insured want Ann Smith to hold the proceeds for his minor 

aged children until they are of age? 

4. BENEFICIARY DESIGNATION

A. SHOW FULL NAME AND ADDRESS OF 

EACH BENEFICIARY ENTERED IN THE 

PRINCIPAL AND CONTINGENT 

BENEFICIARY AREAS BELOW

B. BENEFICIARY’S 

SOCIAL SECURITY 

NO. (If known. See 

instruction No. 5 on 

reverse) 

C. RELATIONSHIP 

TO INSURED 

D. SHARE TO 

EACH (Use 

fractions, such as 

1/2, 2/3, or “all”)

E. 

OPTION 

FOR 

EACH 

PRINCIPAL 

Ann Smith, Guardian 

for my children 

123 Any Street 

Anywhere, USA 00000 

000-00-0000 Friend ALL LUMP

SUM 

OR TO SURVIVOR(S) 

CONTINGENT 

(Person(s) who get proceeds if all of the Principal 

Beneficiaries die before the insured. If none, 

write “none“)

NONE 

OR TO SURVIVOR(S) 

VA cannot make James Jackson pay the 

insured’s funeral expenses. If the intent of 

the insured is to pay his own funeral expenses 

a better designation would be: 

− “Funeral Director” as one principal 

beneficiary with the share “funeral 

bill only” 

and 

− “James Jackson” as a second principal 

beneficiary with the share 

“remainder”. 

Did the insured intend the benefits go to his 

estate (with Sam Jones as the administrator 

for the estate) or to Sam Jones his friend 

(who just happens to be the administrator for 

the insured’s estate)? 

− If the proceeds were to go to his friend 

“Sam Jones” the insured should have 

written “Sam Jones” as the principal 

beneficiary.

− If the proceeds were to go to the 

insured’s estate the insured should have 

written “My estate” as the principal 

beneficiary.

If the insured intended for the proceeds to go 

to his children (including minors) a more clear 

designation would show: 

− “My children” as the principal with 

“equal shares” written in the shares 

section. 

or 

− Ann Smith, in trust for my children as 

the principal with “equal shares” written 

in the shares section. 

Both these designations will ensure the 

proceeds are shared equally among ALL of the 

insured’s existing children 
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77 

Alternate Beneficiary Legislation 

On December 16, 2003, the President signed a law that authorizes the Department of Veterans 

Affairs to pay National Service Life Insurance (NSLI) and United States Government Life 

Insurance (USGLI) to a contingent beneficiary or beneficiaries, when the principal beneficiary 

does not claim the insurance within two years of the date of the insured’s death. 

This means that: 

• If the principal beneficiary, who has been named by the insured, does not claim the 

insurance within two years of the insured’s death, then payment may be made as if that 

principal beneficiary had predeceased the insured. 

• If there is a contingent beneficiary, or beneficiaries, who have been designated by the 

insured, the insurance may then be paid to the contingent beneficiary or beneficiaries. 

• If neither the principal nor contingent beneficiary files a claim for the insurance within 

four years of the insured’s death, VA is authorized to pay the insurance to another person 

who, in the judgment of the Secretary, is equitably entitled. 

• Once payment is made in this manner, proceeds are not payable to any other individual. 

Insured’s State Of Mind 

The following rules apply when completing a beneficiary and option designation: 

• If it appears that the insured does not fully understand their actions or is not acting 

completely freely, a statement from the witness or another party who is present will help 

VA to determine whether the designation is valid. The statement should be submitted to 

VA with the designation, and should list all pertinent details, including the insured’s reason 

for making the beneficiary designation, if known. Mental illness, drugs or alcohol 

intoxication can cause lack of full understanding. Other factors such as duress or undue 

influence can result in the insured not acting freely in making the designation. 

• If an insured is incompetent, his or her legal representative (guardian, conservator, etc.) 

may make a beneficiary designation on the insured’s behalf with the authorization of a 

court order. If the designation can be made while the insured is lucid it should be done in 

the presence of a physician who should verify in writing that the insured had the capacity to 

understand the consequences of the action. Although the physician’s statement is not 

required, it will help VA determine whether the designation is valid. 
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

 Visit our Website: www.insurance.va.gov 

78 

• An insured or claimant can sign by a mark (“X”) if: 

ο the insured is unable to sign due to physical disability, 

ο the insured is of sound mind, AND 

ο the “X” is witnessed by two people not named on the designation. 

!!! Important Facts !!! 

; One Beneficiary Designation applies to all of your policies unless you specify 

otherwise. 

; Make sure the distribution of shares equals 1 (e.g. 1⁄2+1⁄2). 

; A beneficiary change cannot be made by Last Will and Testament, but a 

settlement option change can. 

; NOBODY can order the insured to change their beneficiary, including State 

Courts or Divorce Orders. 

FOR MORE DETAILED INFORMATION, SEE VA PAMPHLET 29-77-3 (REVISED MAY 1990), 

FACTS ABOUT BENEFICIARY AND OPTION DESIGNATIONS.
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

 Visit our Website: www.insurance.va.gov 

79 

Filing Death Claims 

All death claims, (except SGLI and VGLI), should be mailed or faxed to the Insurance Center in 

Philadelphia: 

Mailing Address: Toll-free fax number:

OR

Department of Veterans Affairs 

1-888-748-5822 

Regional Office and Insurance Center 

P.O. Box 7208 

Philadelphia, Pennsylvania 19101 

How To File A Claim

If the beneficiary is: He or she must file: 

a principal beneficiary • photocopy of death certificate showing date and cause of death 

of insured 

• Claim Form, VA Form 29-4125, Claim for One Sum Payment1

a contingent beneficiary • death certificates for the insured and principal beneficiary(ies) 

• Claim Form, VA Form 29-4125, Claim for One Sum Payment1

a representative of the 

estate 

• death certificate(s) 

• copies of letters testamentary, letters of administration, or a 

court order of distribution along with claims from the entitled 

parties2

• claim form signed by the executor or administrator of the estate 

a minor or incompetent • death certificate(s) 

• a claim from the next of kin, personal representative (guardian, 

custodian, etc.) or logical person to receive payment for the 

minor or incompetent 

• letters of guardianship, conservatorship, etc. (if any) 

• address of minor or incompetent 

filing for VMLI benefits • insured’s death certificate 

• a payoff statement from the veteran’s mortgage lender showing 

the outstanding mortgage balance owed as of the veteran’s 

death 

1

If the beneficiary wants monthly payments, he or she should use Claim Form, VA Form 29-4125k 

for USGLI policies OR VA Form 29-4125a for NSLI policies, Claim for Monthly Payments

instead of the claim forms mentioned above. If a lifetime income option (3 or 4) is selected the 

beneficiary’s birth certificate (or other official proof of age) must be submitted. 

2

If these are not available, a statement that there will be no administration of the estate, and VA 

Form 29-541, Certificate Showing Residence and Heirs of Deceased Veteran, must be filed. 
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

 Visit our Website: www.insurance.va.gov 

80 

NOTE:

∗ Photocopies of death certificates are acceptable. 

∗ A letter claiming the proceeds and showing a mailing address for the check may be used instead of 

a VA Claim Form (29-4125, etc.). The claimant should be sure to show the insurance file number 

and to sign the letter. 

∗ Payment cannot be made if it would cause the insurance to escheat to a State (this happens where 

there are no heirs to pay so the assets of the estate default to the State). 

The following factors should be kept in mind when filing a death claim:

• Most death awards are authorized by the Insurance Center within 10 days of receipt of the 

documents needed for payment. 

• An insured’s Will can be used as evidence that he or she intended a lump sum payment, 

regardless of when it was executed. The Will does not have to specifically mention the 

insurance, nor must it be probated. 

• If the award check is to be mailed to the claimant’s bank account, the account number and 

type of account (checking or savings) must be shown on the claim in addition to the name 

and address of the bank. 

• Award checks can be directly deposited into a claimant’s account. The claimant must 

provide their checking or savings deposit account number as well as their social security 

number. Claimants must also provide the name, address, phone number, and the routing 

transit number for their financial institution. 

• A beneficiary may assign all or a portion of his or her share of the insurance to a restricted 

class of the insured’s relatives. 

• Any additional questions on filing a death claim please call 1-800-669-8477. 
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

 Visit our Website: www.insurance.va.gov 

81 

Gratuitous S-DVI 

(Policies Prefixed by "ARH")

Eligibility Requirements For Gratuitous S-DVI 

Gratuitous Service-Disabled Veterans’ Insurance (S-DVI) is granted posthumously to veterans 

who: 

• Met the basic eligibility requirements for S-DVI (prefixed “RH”); and 

• Did not apply for S-DVI because of a continued mental incompetence due to a serviceconnected disability; and 

• Died before the appointment of a guardian or within two years of such appointment. 

Application For Gratuitous S-DVI Benefits 

VA must receive an application for payment of Gratuitous S-DVI within two years from the date of 

the veteran’s death. However, if the person making the claim is mentally or legally incompetent at 

the time the right to apply for Gratuitous S-DVI expires, they may apply within one year after their 

incompetency ends. 

Payment Of Gratuitous S-DVI 

Gratuitous S-DVI is granted in an amount that, together with any other United States Government 

Life Insurance or National Service Life Insurance in force, totals $10,000. Gratuitous S-DVI is 

payable to the beneficiary only as a lump sum payment. 

Payment of Gratuitous S-DVI is made to the following beneficiaries in the order named: 

1) To the widow or widower of the insured, if living. If not, 

2) To the child or children of the insured, if living, in equal shares. If not, 

3) To the parent or parents of the insured, if living, in equal shares. 
82 

 How To Contact Us 

V
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

 Visit our Website: www.insurance.va.gov 

83 

Phone Numbers, Fax Numbers and Mailing Addresses 

Points of Contact for VA Administered Policies (USGLI, NSLI, 

VSLI, VRI, S-DVI, VMLI) 

There are several ways for a policyholder to contact VA about their VA Life Insurance. Besides 

the old fashioned letter in a mailbox, policyholders can contact the Insurance Center through a tollfree number, by facsimile, by e-mail and through the world wide web.

Insurance Toll Free Service -- 1-800-669-8477 

Customers calling the Insurance Toll Free Service can speak to an Insurance 

Specialist or use the Insurance Interactive Voice Response (IVR) System. 

Insurance Specialists are available 8:30 AM to 6:00 PM (Eastern Time) Monday - Friday 

(The best days to call are Wednesdays through Fridays).

Insurance Interactive Voice Response (IVR) System 

The Insurance IVR system allows customers using the toll-free telephone number to access 

their own insurance records 24 hours per day, 7 days per week. The Insurance IVR system 

provides four basic functions for callers: 

1. Informational letters and forms: By making a touch-tone input, callers can have the 

following letters and forms mailed to them: 

Forms/Applications Informational Letters/Statements: 

Beneficiary Designation Premium status letter 

Application for a loan or cash surrender Dividend status letter 

Loan and cash values letter 

Annual policy statement 

2. Policy information: Callers can hear detailed insurance policy information within 

three major categories: 

• Dividends 

• Loan and cash values 

• General policy and premium information 

3. Voice mail: During the hours when Insurance Specialists are not available, 6:00 PM to 

8:30 AM (Eastern Time) on weekdays, and 24 hours per day on the weekends, callers 

can leave voice messages requesting information and service. An Insurance Specialist 

will respond to the messages by the next business day. 
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

 Visit our Website: www.insurance.va.gov 

84 

4. Pre-recorded informational messages: Callers also have the option to listen to prerecorded information after hours and weekends concerning a variety of insurance 

topics. 

Toll-Free Facsimile Service 

Philadelphia: Death Claims: 1-888-748-5822 

 All other requests or questions: 1-888-748-5828 

Mailing Addresses for VA Administered Policies (USGLI, NSLI, VSLI, 

VRI, S-DVI, VMLI) 

Department of Veterans Affairs 

Regional Office and Insurance Center 

P.O. Box (SEE BELOW FOR P.O. BOX NUMBER)

Philadelphia, Pennsylvania 19101 

Contact Us Link for VA Administered Policies (USGLI, NSLI, VSLI, VRI, 

S-DVI, VMLI) 

To contact us via the Internet, use the following link-- 

https://insurance.va.gov/inForceGliSite/mypolicy/mypolicy.htm

For correspondence concerning: 

• Death, waiver of premium or VMLI Claims, 

and S-DVI applications: P.O. Box 7208

• Loans and Cash Surrenders: P.O. Box 7327 

• Premium and Loan/Lien Payments: P.O. Box 7787 

• All Other Insurance Mail: P.O. Box 42954
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

 Visit our Website: www.insurance.va.gov 

85 

Points of Contact for VA Supervised Policies (SGLI, VGLI) 

If you are looking for information about the SGLI and VGLI programs and cannot find answers to 

your questions on the SGLI/VGLI portion of the Insurance website (see below) you can call, email or write to the Office of Servicemembers’ Group Life Insurance (OSGLI). OSGLI 

administers the SGLI and VGLI programs including the processing and payment of claims. 

OSGLI can be reached at: 

Toll-free telephone 1-800-419-1473 

E-mail Death and Accelerated benefit claims: 

osgli.claims@prudential.com

All other inquiries: osgli.osgli@prudential.com

Toll-free fax Death and accelerated benefits claims: 1-877-832-4943 

All other fax inquiries: 1-800-236-6142 

General Correspondence The Office of Servicemembers' Group Life Insurance 

80 Livingston Avenue 

Roseland, New Jersey 07068-1733

New VGLI Applications 

and VGLI Reinstatements 

OSGLI 

PO Box 41618 

Philadelphia, PA 19176-9913 

Non-toll-free telephone 

(To contact OSGLI from 

overseas) 

973-548-5699 

Non-toll-free fax 

(To contact OSGLI from 

overseas) 

973-548-5300 

Website http://www.insurance.va.gov/sgliSite/default.htm
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

 Visit our Website: www.insurance.va.gov 

86 

VA Insurance Information Available on the Internet 

Insurance information is available through the Internet at www.insurance.va.gov

Through the VA insurance website, an insured can access two insurance sites from our home 

page: 

3⁄4 The VA Insurance Website and

3⁄4 The SGLI & VGLI Website 

The VA Insurance Website contains information about: 

 National Service Life Insurance (NSLI, VSLI, VRI) 

 Service-Disabled Veterans Insurance 

 United States Government Life Insurance 

 Veterans Mortgage Life Insurance 

On-line Policy Access is available for all of these policies except VMLI (see “On-line 

Policy Access” below). 

The SGLI & VGLI Website contains information about: 

 Servicemembers’ Group Life Insurance 

 Veterans' Group Life Insurance 

 Family SGLI (FSGLI) 

 Traumatic Injury Protection (TSGLI) 

 Other SGLI/VGLI policy features 

On-line Policy Access is available for VGLI policyholders.

(see “On-line Policy Access” below) 

On-line Policy Access is not available for SGLI policyholders. 

On-line Policy Access 

Insureds can now access their insurance policy information online at our website by 

clicking on the link “On-line Policy Access”. 

To access VA administered policies (USGLI, NSLI, VSLI, VRI, S-DVI): 

• A Personal Identification Number (PIN) is necessary to access this information and 

can be requested at this website by clicking on the “PIN Request Link”. This link 

takes the insured to the “Government Life Insurance PIN Registration” webpage. 

The following information is required to receive a PIN number: 

 Insurance File number 

 Social Security number 

 Date Of Birth 
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

 Visit our Website: www.insurance.va.gov 

87 

Once the PIN number is received in the mail the insured will have access to information 

about their policy plan, values, premium status, dividends, loans, and beneficiary 

designation. Policyholders can also apply for a policy loan online. An additional 

password is required to access this feature. 

To access VA supervised policies (Veterans' Group Life Insurance): 

First time users must enter their Social Security Number and last name. After submitting this 

information they are then given the opportunity to create their own User ID and Password. 

NOTE: This feature is not yet available for Servicemembers' Group Life Insurance 

(SGLI) policyholders. 

Apply for S-DVI Insurance Online 

Veterans can now apply for Service-Disabled Veterans’ Insurance with the click of a button. The 

new AutoForm (Automated Form) application will walk the veteran through the application stepby-step. The new application offers the following advantages: 

Ease of Use - The step-by-step format and online help screens take the guesswork out of applying. 

The applicant can review different insurance plans and calculate premiums with the click of a 

mouse. We'll even help the veteran determine if they are eligible for this insurance. 

Flexibility – The application does not have to be completed all in one session. The application can 

be saved on our secure server until the applicant can get back to it. 

Convenience - The application can be submitted electronically via our secure server. We begin 

working on it right away. The application can also be printed and mailed or faxed to us. 

Life Insurance Needs Calculator 

This interactive website feature helps veterans determine if they have enough life insurance 

to meet their family’s needs. VA’s Life Insurance Needs Calculator provides veterans with 

an estimated amount of life insurance necessary to support their survivors. The calculator 

is located in the SGLI/VGLI section of the VA website. 

By using the following information that the veteran inputs: 

• current assets (these include such things as investments, bank accounts, savings 

bonds, social security benefits, retirement funds, etc.) 

• net income survivors will need (the annual income that will provide the standard 

of living desired for survivors minus the annual income available to survivors) 

• financial obligations (these include such things as car loans, credit card debt, 

funeral/burial expenses, children’s educational expenses, mortgages, etc.) 

the calculator suggests the amount of life insurance the veteran should have. 

Note: VA’s Life Insurance Needs Calculator does not include every financial situation that may affect a 

veteran. The Calculator should be used as a guide only and is not a substitute for a financial planner. 

Financial information is not saved or transmitted to VA.
 QUESTIONS? Call us Toll Free: 1-800-669-8477 

 Visit our Website: www.insurance.va.gov 

88 

Insurance Website Features 

Among the many options available on our website an insured can: 

Link to the Department of Veteran’s Affairs Home Page which provides links for all 

Veterans Benefits & Services. 

View various information on all of VA’s life insurance programs, including SGLI and 

VGLI such as: 

• insurance benefits for service-disabled veterans 

• how to file a death or waiver of premium claim 

• dividend options available 

• Frequently Asked Questions about VA life insurance, SGLI, SGLI Family 

coverage, TSGLI, and VGLI 

• buying life insurance 

Apply for • Service-Disabled Veterans’ Insurance using the AutoForm (Automated 

Form) application. (See “Apply for S-DVI Insurance Online” on page 

86.)

• A policy loan (See “Applying For a Policy Loan” on page 66.)

Calculate the estimated amount of life insurance necessary to support their survivors should 

the veteran die. (See “Life Insurance Needs Calculator” on page 86.)

Access their insurance policy information. (All policies except VMLI and SGLI.) (See 

“On-line Policy Access” on page 85.)

Ask questions about, or request an action be taken on, their VA life insurance policy. 

Search a database to determine if VA is holding unclaimed insurance funds. This money 

represents death awards, dividend checks and premium refunds that were mailed 

to policyholders. These payments were returned to VA by the Post Office because 

they could not be delivered. 

View, 

Download 

or Print 

• this VA Life Insurance Programs handbook 

• the SGLI/VGLI handbook, which provides a comprehensive overview of 

these programs. 

• SGLI forms and VA insurance forms such as Designation of Beneficiary, 

Application for Reinstatement, Claim for Disability Insurance Benefits, and 

many others. 

Contact • the VA Insurance Center 

• the Office of Servicemembers' Group Life Insurance 
www.insurance.va.gov