Evening star., 1950-08-16
By George Beveridqe

While the first rumblingS al
ready have begun on Capitol Hill
for drastic revisions in the CT
insurance program, no early ac-
ton is expected to change policies
in effect during World War II,
survey showed today.
This means that Serviceman en-
tering the armed forces for tine
first time can get up to $4,000
worth of Government insurance.
Likewise, the veteran who re-
turns to active duty can get $10,-
900 worth of National Service Life
Insurance, but no more, even If
his World War II policy still is in
effect. These are the possibilities
for such veterans:
l. If he has $4,000 worth of
GI insurance, in any form, he
can get no more.
2. If he has no CT policy in eff
feet, he can apply for as much as
$4,000, in amounts of $1,000.
Two Ways to Increase Total.
3. If he has less than $4,000
worth, he can apply for enough
more to bring to total to $4,000
face value. There are two ways
he can do this:
Within 120 days of entrance on
active duty, he can apply for
new term policy, which lasts for
five years, without taking a ply
Sical examination.
Or, he can re-instate his old
CT policy, If it has lapsed. If it
has lapsed for more than three
months, however, he must take a
physical examination.
In most cases, military and Vet
Grams Administration officials said,
it would be most advantageous for
this veteran to apply for a new
policy, rather than to re-inState
his old one.
Since premium payments are
computed on an age basis, premi-
um payments might be slightly
lower for the time being on the
re-instated lapsed policy. AS
soon as the f1ve-year term ex-
pires on this old policy, however,
a new, higher rate goes into
effect. The Serviceman who takes
out a new policy today has the
advantage of a full five years at
the present rate.
Lower-Age Bracket Costs.
For men through the ages Of
10 to 81, the premium rate is IS
cents per thousand. 1t goes up
to 66 cents for those % and %
to 81 for those "a and 25; 6S
for those 26; SO for those 81 and
%, and 10 for those 29.
The servicNnan also can apply
outright for one of the perma-
nent-type NSLI policies, but Off
cials warned that premiums for
them are much higher.
The veteran returning to &C
tive duty who already has per-
manent-type policy, meanwhile.
faces a real dilemma, unless he is
financially able to maintain the
high payments.
Under a bill introduced by Rep
resentative Rogers, Democrat, OF
Florida, VA would take over pay
ment Of such premiums during
military service, If necessary.
Even this, however, would be in
the form of loan, building up a
stable debt to be paid off later.
Two Other Choices.
At the present time, these are
only two bets for veteran-soldierS
unable to keep up the expensive
policies:
l. If the policy has been con-
verted to a permanent-type for
more than a year, 1t can be can
celed, with the policy-holder get
ting the accrued cash value. He
then may apply for the cheaper
term insurance.
2. If the policy has been con-
verted for less than year, the
policy has no cash value. But
the holder gets insurance pro-
lection for certain period with
no further payments.
A danger in the latter case,
however, is that If the soldier
returns to civilian life before the
free insurance period expires, he
cannot take out another CT policy.
For that reason, VA official said,
the best bet would be to pay
premiums through the pne-year
date, then get the policy's cash
value and take out a cheaper
term policy.
The Serviceman who has an
expensive commercial policy faces
a similar dilemma.
If he can meet premium pay
mentS, the armed forces will de-
duct regular amounts from his
pay and pass them along to the
commercial company. II he can't
meet the payments and wants to
hold on to his commercial policy,
his only recourse is a provision
of the old Soldiers and Sailors
Civil Relief Act.
This provision, II the service
man applies for it. allows VA toI
guarantee payment Of premiums
until two years after the holder
returns to civilian life, even If no
current payments are made. At
the end Of the two years, however,
If the man has not brought his
policy up to date, VA cancels the
policy and pays the company the
difference between the amount
due the policyholder. The amount
VA pays then would be debt
against the veteran:
Such debts YeEa cfalked up