Life Insurance Facts

Veterans life insurance is designed specifically for veterans, servicemen and their beneficiaries owing to the high risk nature of work in the military. Not many private companies give veterans life policies. The US government however has elaborate programs under the State Department for Veteran Affairs. These include among others Service Disabled Veteran Life Insurance ( SDLI), Veterans mortgage Life Insurance (VMLI), Veterans’ Group Life Insurance (VGLI).

The benefits of veteran life are many, depending on the individual program or policy.

• Overall there is guarantee values of cash surrender, loan and paid up provisions for a current policy.

• Certain holders will also enjoy dividends the interest on which there is no tax.

• Policy holders can also take loans of up to 94% of the cash surrender value while continuing to pay premiums on the policy.

• Interests on these loans will not go higher than 12% or lower than 5% pa.

• Any term  life policy that is not lapsed may be converted to a permanent plan, with certain requirements.

• A permanent plan provides higher cash and loan value as well as higher annual dividends.

• A 5-year term policy which has not lapsed at the end of the term is automatically renewed for another 5-year period.

• On some policies dividends accruing can be ploughed back to buy additional cover, permitting the insured to have more than $10,000 paid up cover.

Veteran life insurance is a way of giving care to veterans, those in the military service and those transitioning from the military in terms of medical care, disability compensation and insurance. The clauses  and requirements are different for each programs, but the general gist of veterans life insurance programs is that they give support to men and women of courage who have given their country great service.