The people's voice. [volume] (Helena, Mont.) 1939-1969, 1945-11-23
National Service Life
Insurance Payments

National Service Life
Insurance Payments
Payments under National Servic
Life Insurance.
Under the National Service Life In
surance, benefits are payable in on
of two ways The two methods ar
known as Option and Option 2.
IoPTloN I
The number of monthly benefit pay
ments to be made under Option l de
ponds upon whether the beneficiar.
of the insurance is under or over 81
years of age when the servicemaI
dies.
Beneficiary under 80 years of age
When the first-choice beneficiary (per
son to receive payment) has moi
reached his or her Both birthday al
the time of the death of the service
man, the government guarantees that
it will make monthly payments for
only $40 months go years. to the
| beneficiary Payment will be at the
rate of 1851 per month for each $1,000
of insurance carried by the service
man. Thus, if the insured carried a
$4,000 policy, payments would be
$3.50 per month for 20 years.)
If the beneficiary designated by the
serviceman dies before all 240 pay
ments are made, the balance of the
240 payments are made to the in
sured's widow, children, parents or
brothers and sisters (These people
are known as the permitted class" of
beneficiaries-the only people to
whom National Service Life Insur-
ance payments can be made.)
All payments to anyone, including
the original designated first-choice
beneficiary, stop at the end of 20
years. Thus, a 24-year-old widow who
accepts payments under Option 1 will
not receive payments after she is A
years old.
Beneficiary 80 years of age or over
A beneficiary 80 years old or over des-
ignated by the serviceman as his first
choice to receive benefits of the serv-
icemans insurance will receive month
ly payments for life. The amount of
the monthly payment varies with the
ages of the first-choice beneficiary at
the time of the serviceman's death.
Payment ranges from 1897 per $1,000
of insurance each month at age 30 to
1851 per $1,000 of insurance each
month at age SO and over.
If the first choice beneficiary dies
before 120 monthly payments 40
years. have been made, the number
of payments less than 120 paid the
first choice beneficiary will be made
to another beneficiary within the per
mitted class" Thus, if the first-choice
dies after receiving 80 monthly pay
ments, additional payments will be
made for 40 months to another per
mitted" beneficiary.
OPTION
All first choice of the-servicemen
beneficiaries, no matter what their
ages at the time the serviceman dies,
will receive monthly benefit payments
for life under Option 2. The amount
of the monthly payment varies with
the age of the beneficiary at the time
the insured dies. The payments range
from 1929 per $1,000 of insurance
each month (s32.9O month for
$4,000 policy if the beneficiary is
10 years of age or under to $8.07 per
81 900 per month at age 6S.
Option 2 also guarantees that at
least a given number of payments will
be made under each policy to one or
more beneficiaries. This number of
guaranteed" payments is determined
by the age of the first-choice benefit
ciary and it ranges from 304 guaran-
teed payments in the case of 10
year-old beneficiary. (Beneficiaries
over 6S years of age are not allowed
Option 81
The guaranteed payments" mean
unless the first-choice bene-
ficiary dies. Then the Veterans adj
subtracts the number of
payments made to the first
choice beneficiary from the guaran-
teed number and pays the balance of
the monthly installments-in monthly
another permitted"
Thus: A 31-year-old widow under