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Understanding Veterans Life Insurance
Understanding veteran’s life insurance programs can be exhausting...
They have designed their insurance programs to help those veterans who may have trouble getting insurance from the private sector due to the extra risks they pose due to military service, as well as service connected disabilities. Family members may take advantage of some of these policies as well. There may not be any monthly premium for getting veteran care but there may be a co-pay.
The department of the Veterans Affairs (VA) has the responsibility of making sure that veterans receive the proper care and support that they earned by fulfilling their military service obligations. They offer medical care, insurance, and disability compensation. They highly recommend that members take a physical within 120 prior to separating from the service.
This will be used as a basis in determining their future compensation claims. They should also have certified copies of the medical records that were on file before their separation.
As of July 1, 1972, the amount of life insurance from the government can be increased from the ceiling of $10,000. If you own one of these policies, you can use the dividends to buy additional coverage which will give you more than the $10,000 worth of coverage. If your policy has lapsed for any reason, you can be re-instated as long as it's done within five years of the lapse date. But this is only if in the case that you haven't reached your 50th birthday.
If you should carry your veteran life insurance without a lapse, then it will automatically renew at the end of the five years for another additional five year period. The only exception here lies in the NSLI Limited Convertible Term Plan that may be converted into a permanent plan, but also cannot be renewed after the 50th birthday of the insured. The rates are base upon the attained age of the insured, with the exception of the "V" and "RS" prefixed policies that were renewed past the age of 70.
Veteran life insurance policyholders can convert their policies to permanent plans if they meet the proper requirements. If they are totally disabled, and hold an NSLI policy, then they are not eligible to convert to an endowment plan.
Veterans can take advantage of 'Modified Life' plans at the age of 65. This is available to NSLI policyholders and affords them low premium rates that will remain level throughout the life of the policy. The face value of this policy will reduce by 50% at the age of 65. The amount that is reduced can be replaced by obtaining a 'special ordinary life' plan which will cost an additional premium.
Veterans life insurance policyholders can borrow against their policies for up to 94% of the cash surrender value of that policy. If the policy loan was applied for after the date of November 2, 1987, then the interest charged is adjusted every October 1 thereafter.
The Veterans Life Insurance options are quite numerous in order to cover all the different circumstance that can occur from service. You can find all the information you need online or by calling your local Veterans Administration Office.
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