Sent in by Veterans News and Information Services
From VA For Immediate Release
Washington, D.C. -- Changes in government life insurance
programs signed into law by President Clinton on Veterans Day
will allow terminally ill veterans to receive accelerated death
benefits.
The Veterans Programs Enhancement Act establishes an option
for the Department of Veterans Affairs (VA) to pay these benefits
under the Servicemembers' Group Life Insurance (SGLI) and
Veterans' Group Life Insurance (VGLI) programs. This option
allows terminally ill SGLI and VGLI policyholders to receive up to
half of the face value of their coverage, up to a maximum of
$100,000 during their lifetimes.
"This option will greatly improve the quality of the final days of the
servicemember's or veteran's life, providing them and their families
much-needed finances for medical care and other essentials," said
VA Under Secretary for Benefits Joseph Thompson.
Another provision of the legislation authorizes VA to issue
dividends to some 1,400 holders of World War II era National
Service Life Insurance (NSLI) "H" policies. Holders of more than
two million NSLI policies other than "H" already receive
dividends.
The "H" policy program was established in 1946 to restore the
insurability of veterans who could not meet the requirements of the
NSLI program because of injuries they sustained in service. Even
though their actual mortality experience has proven better than
what was anticipated, the "pay-as-you-go" funding nature of the
"H" program has not permitted the payment of dividends. The new
plan will allow for the payment of future dividends to "H"
policyholders from a reserve established from appropriated funds.
The plan also will allow VA to cap the premium rate for
policyholders with term insurance, as is done in the parent NSLI
"V" program.
http://www.va.gov/pressrel/98trmill.htm
December 7, 1998
