The U.S. government, through the Department of Veterans Affairs (formerly the Veterans Administration), administers insurance programs for active members of the armed forces and veterans of military service. Instituted under the terms of the War Risk Insurance Act of 1917, U.S. Government Life Insurance permitted those on active duty during World War I to purchase low-cost life insurance in amounts up to $10,000. About 4.5 million persons applied for this insurance during the war. National Service Life Insurance, instituted in 1940, provided insurance for members of the armed forces in World War II on the same basis as had existed in World War I. This program was later extended to include World War II veterans, who were eligible for insurance whether or not they had obtained policies while in service. No new policies were issued under either program after April 1951.
Legislation enacted in 1965 established Servicemen's Group Life Insurance (SGLI) for personnel on active duty in the uniformed services and Ready Reservists. This program is currently in effect. Under the present program up to $50,000 of group life insurance is available on a voluntary basis to each individual, including all reservists and members of the National Guard. SGLI, now supervised by the Department of Veterans Affairs, is underwritten by more than 300 life insurance companies. A program begun in 1974 provides for automatic conversion of SGLI to a 5-year nonrenewable policy known as Veteran's Group Life Insurance (VGLI). Coverage is available in units of $5000 up to the amount of SGLI in force at the time of separation. VGLI is available to service personnel separated on or after August 1, 1974, and to reservists injured while on active duty. At the termination of the 5-year policy the insurance policy can be converted to an individual commercial policy with the participating companies at standard rates regardless of the policyholder's health.
Veterans Mortgage Life Insurance is available to totally disabled veterans, primarily paraplegics, who receive a grant to purchase specially adapted housing. In 1976 the amount of insurance coverage was increased to $40,000.
Legislation enacted in 1965 established Servicemen's Group Life Insurance (SGLI) for personnel on active duty in the uniformed services and Ready Reservists. This program is currently in effect. Under the present program up to $50,000 of group life insurance is available on a voluntary basis to each individual, including all reservists and members of the National Guard. SGLI, now supervised by the Department of Veterans Affairs, is underwritten by more than 300 life insurance companies. A program begun in 1974 provides for automatic conversion of SGLI to a 5-year nonrenewable policy known as Veteran's Group Life Insurance (VGLI). Coverage is available in units of $5000 up to the amount of SGLI in force at the time of separation. VGLI is available to service personnel separated on or after August 1, 1974, and to reservists injured while on active duty. At the termination of the 5-year policy the insurance policy can be converted to an individual commercial policy with the participating companies at standard rates regardless of the policyholder's health.
Veterans Mortgage Life Insurance is available to totally disabled veterans, primarily paraplegics, who receive a grant to purchase specially adapted housing. In 1976 the amount of insurance coverage was increased to $40,000.
