Evening star., 1951-02-21
Free Insurance Bill
Covers Servicemen
Killed Since June II
By james MorIow
Associofed Press Stoff Writer


Veterans with National Service
Life Insurance may be puzzled
about a move in Congress to set
up a new kind of CT insurance.
sup to now, men in service could
get this NSLI, insuring themselves
up to $4,000. They had to pay
for 1t, but no one had to buy it.
Roughly 20 per cent of the men
now in service, with dependents,
don't have the insurance.
II a serviceman bought it, he
could drop it when he was dis
charged, and that would end it.
But if he wanted to. he could keep
1t to cover hi min civilian life.
If he kept it, he could have the
cheapest kind, called term insur-
ance, or convert it to a more ex-
pensive permanent policy. In
either case, he'd have to keep on
paying for it, Only about 4 mil
lion World War II veterans have
kept the NSLI they had while in
service
How 1t Would Work.
That's the way the story has
been and is now. But week ago
the House Veterans Committee ap-
proved a new kind of CT insurance.
II it goes through as approved,
this is the way it will work:
Every serviceman will be in
sured for $4,000 by the Govern
ment for as long as he's In service
and for 80 days afterwards. He
won't have to pay for it,, At the
end Of those 80 days, the insur-
ance stops.
If he comes out of the service
disabled he can keep the insur-
ance-it is called "H" policy-but
he'll have to pay for it then. The
maximum "H" policy is $4,000.
If he comes out of the service
totally disabled. then he gets this
same III" policy free for the whole
period of his total disability. The
III" policy in that case is fiat
$4,000.
Retroactive in Deaths.
And this new law would take
care of the survivors of men who
died in service since June 27, 1850,
If they were not protected at the
time Of their death by the present
NSLI insurance.
For example: John Jones was
killed in Korea in July but had
no NSLI insurance. Still, he had
dependents. The new law would
provide $4,000 for them.
Or, Tom Smith was killed in
Korea. He had dependents, too,
but only $4,000 NSLI. Under the
new law those dependents would
get an additional $4,000, to make
the total insurance payment to
them $4,000.
But what of those million
World War II veterans who kept
NSLI insurance after being dis
charged and have been paying
on it ever since? The new law
wouldn't affect them or their pol
Icy In any way. They'd continue
to pay on their NSLI policy.
Back-in- Service Case.
But suppose veteran with this
old NSLI is called back into serv-
ice now and this House commit
tee bill becomes a law. He'd get
q break.
Once back in service, he'd be
covered free with the new $4,000
policy. He could give up his old
NSLI policy.
If he had a permanent NSLI
policy, he'd get back from the
Government, when he gave it up,
the policy's cash surrender value.
If he had the cheaper NSLI
term policy, he'd get nothing back
when he gave it up after return
ing to the service.
But what happens when this
veteran-who went back into serv-
ice mad gave up his NSLI policy
is discharged later on? AS noted
above, the protection of the $10,-
000-for-free policy under the new
law would end 80 days after his
discharge. Is he then left with
out any insurance?
Could Get 1t Back.
No. Once discharged, he could
get back his old NSLI policy:
l. If he had the permanent kind,
he can get it. back by returning
all the money he had received
when he gave it up, plus sum
slightly less than what he would
have paid on it from the time he
gave it up until he wanted it back
again. And he could get this back
without physical examination.
2. If he had the NSLI term in
surance, he could get it back
simply by paying a sum equal to
two monthly premiums. But he'd
have to take physical examina-
tion.
If he was disabled and couldn't
pass the term insurance exam,
he'd get the III" insurance men
toned before, up to $4,000 and
pay for it month by month.
If he was totally disabled, he'd
get a full $4,000 III" policy for
free for the whole period of his
total disability.