PART IV CHAPTER 6 INSURANCE 406.1 Insurance, National Service Life. 406.2 National Service Life Insurance, Reinstatement of. 406.3 Total Disability, Waiver of Premiums on Account of. Premiums, Payment of. 406.4 406.5 Insurance, Prisoners of War. 406.6 Insurance, Commercial Life. 406.7 Insurance, Information on. PART IV CHAPTER 6 INSURANCE 406.1 Insurance, National Service Life. (a) Veterans should be counseled and advised to retain their national service life insurance (government insurance). It is the cheapest and best life insurance obtainable. The fact that a man is discharged from the armed forces does not terminate this insurance, provided he continues the premium payments. (b) Since the original insurance policy is a temporary, or term, policy, it must be converted before the expiration of the 8-year term period to one of the standard forms of policy to remain in force as permanent insurance. Facts to remember: (1) Originally issued on the 5-year level premium plan, the law has been amended to extend the term to 8 years, when the policy expires unless converted. (2) At any time after it is in force for 1 year, but before the expiration of the 8-year term period, it should be converted into ordinary life, 20-payment life, or 30-payment life policies. (3) First premium payment after discharge is usually payable during the first month after discharge. (4) Always show policy number when making payment. (5) If policy number is not known, payment should be accompanied by a letter giving name, serial number, rank, organization, and date of birth of the insured. (6) Arrangements can be made to make payments on a quarterly, semiannual, or annual basis on approval of the Veterans' Administration. (7) Until conversion from term plan, the premium will remain the same after discharge as the amount deducted from pay while in the service. (8) Reduction may be made in the amount of insurance on application to the Veterans' Administration, provided the amount continued is in multiples of $500 and not less than $1,000. Premiums will be reduced accordingly. (9) Change in beneficiary after discharge may be made by application to the Veterans' Administration. 406.2 National Service Life Insurance, Reinstatement of.— Insurance which has lapsed may be reinstated by the veteran, either within 6 months after date of separation from active service or within 3 months after date of lapse, whichever is later, by payment of only two monthly premiums without interest on 5-year level premium term insurance (payment of all monthly premiums in arrears with 5-percent interest required for converted plans of insurance) and by filing statement showing that he is in as good health as he was on the date of lapse. After expiration of the two periods stated above, the veteran must be in good health and furnish satisfactory evidence thereof in the form of a complete report of physical examination. This examination may be obtained free of charge through the Veterans' Administration. 406.3 Total Disability, Waiver of Premiums on Account of. If a veteran becomes totally disabled (1) after the date of his application for insurance, (2) while his insurance is in force under premium-paying conditions, and (3) before his sixtieth birthday, and such disability continues for 6 consecutive months or more, he may, upon application, have the premiums waived during such disability and his insurance will remain in force without further payment of premiums so long as he remains so disabled. To become eligible for this waiver, proof of such continuous total disability for 6 months or more must be submitted to the Veterans' Administration. The veteran should continue to pay premiums regularly as they become due until he receives notice from the Veterans' Administration of entitlement to waiver of premiums. Any premiums paid to cover a period during which the waiver is effective will be refunded. 406.4 Premiums, Payment of.-Checks, drafts, or money or ders for premium payments on Government insurance should be made payable to the Treasurer of the United States and sent to: Collections Subdivision, Veterans' Administration, Washington 25, D. C. 406.5 Insurance, Prisoners of War.-(a) Any person in active service who on or after December 7, 1941, and prior to April 20, 1942, has been captured, besieged, or otherwise isolated by the forces of an enemy of the United States for a period of at least 30 consecutive days and extending beyond April 19, 1942, and at the time of such capture, siege, or isolation by the enemy did not have in force Government life insurance in the aggregate amount of at least $5,000, shall be deemed to have applied for and to have been granted national service life insurance in an amount which together with any such insurance then in force shall aggregate $5,000. (b) Insurance shall remain in force and premiums shall be waived during period of siege, isolation, or capture, and for 6 months thereafter. Such protection shall terminate at the end of such period of 6 months unless within such period such person shall make application in writing for the continuance of all or any part of such insurance and shall submit evidence satisfactory to the Administrator of Veterans' Affairs of entitlement to waiver of premiums because of continuous total disability or pay premiums thereafter becoming due. the 406.6 Insurance, Commercial Life.-(a) The Soldiers' and Sailors' Civil Relief Act of 1940, as amended October 6, 1942, provides that a policy of life insurance held by a member of the armed forces and issued by a commercial insurer may be prevented from lapsing or being otherwise forfeited for nonpayment of a premium or any interest or indebtedness. The United States will guarantee payment of premiums while the insured is on active duty with the military or naval forces, provided application is filed by the insured or a beneficiary (if the insured is outside the continental United States) to bring the policy under the protection of the act, and the total amount of insurance does not exceed $10,000. (b) Benefits of the act shall not extend for more than 2 years after termination of the insured's military service and not more than 2 years after the act ceases to be in force. (The act will remain in force until the war is terminated by a treaty of peace and for 6 months thereafter.) (c) Veterans may make inquiry regarding this protection to the commercial company which issued the policy or to the Director of Insurance, Veterans' Administration, Washington 25, D. C. 406.7 Insurance, Information on.-Contact the Veterans' Administration (nearest office) for detailed information on Government insurance, or write direct to: Insurance Service, Veterans' Administration, Washington 25, D. C. |