Life Insurance for Veterans - Direct Payments for Insurance

To provide direct insurance payments, including advance payments disbursed as loans, to Veterans and their beneficiaries for claims based on death or other qualifying circumstance.

Payments may be authorized for Veterans of World War I, World War II, Korean conflict, Vietnam conflict, Gulf era
conflicts and service-disabled Veterans separated from active duty on or after April 25, 1951, and for mortgage protection life insurance for those disabled Veterans who are given a VA grant to secure specially adapted housing under Chapter 21, Title 38, U.S.C.

Agency - Department of Veterans Affairs

The Department of Veterans Affairs strives for excellence in patient care and veteran's benefits for its constituents through high quality, prompt and seamless service to United States veterans.

Office - See Regional Agency Offices.

For all States, contacts the Department of Veterans Affairs, P.O.

Box 42954, Philadelphia, PA 19101.

This office should also be contacted about Veterans Mortgage Protection Life Insurance.

Program Accomplishments

Not Applicable.

Uses and Use Restrictions

Life insurance settlement is payable upon death of the insured, or the insured may personally surrender a permanent plan policy for cash.

The insured may also be granted a loan for up to 94 percent of the cash surrender value of a permanent plan policy.

Interest on United States Government Life Insurance (WWI) policy loans is charged at the rate of 5 percent per annum.

Interest is charged at a variable rate, which may change annually, for National Service Life (WWII), Veterans Special Life (Korean conflict), Service-Disabled Veterans (Korean Conflict and Continuing) and Veterans Reopened Insurance policies.

The variable rate equals the yield on the Ten-Year Constant Maturities Index for U. S. Treasury securities for the month of June of each year rounded down to the next whole percentage.

This loan rate is effective from the first day of October of each year and will not exceed 12 percent or be lower than 5 percent per annum.

The face amount of the policy, less any indebtedness on the policy, is payable to the designated beneficiary upon the insured s death under a regular life policy, and only to the mortgage holder under Veterans Mortgage Life Insurance coverage.

Other direct payments may include dividend cash option payments or other payments as authorized.

Eligibility Requirements

Applicant Eligibility

Veterans who have purchased one of the named life insurance policies and their beneficiaries.

Payment cannot be made if it would cause the insurance proceeds to revert back to a State (in the case where there are no heirs to pay).

Beneficiary Eligibility

Payment may be made on a claim to a principal beneficiary, a contingent beneficiary, a representative of the estate, a minor or incompetent, or another designee filing for benefits. A beneficiary may assign all or a portion of his or her share of the insurance to a restricted class of the insured s relatives. Payments may also be made to the policyholder for loan or dividend amounts.


Dependent on the beneficiary, the following documentation is required for payment of an insurance claim:

For a principal beneficiary, a photocopy of death certificate showing date and cause of death of insured, and Claim Form, VA Form 29-4125, Claim for One Sum Payment.

For a contingent beneficiary, death certificates for the insured and principal beneficiary(ies), and the Claim Form, VA Form 29-4125, Claim for One Sum Payment

For a representative of the Veteran s estate, the death certificate(s), copies of letters testamentary, letters of administration, or a court order of distribution along with claims from the entitled parties, and a claim form signed by the executor or administrator of the estate.

For a minor or incompetent, death certificate(s); a claim from the next of kin, personal representative (guardian, custodian, etc.) or logical person to receive payment for the minor or incompetent; letters of guardianship, conservatorship, (if any); and the address of minor or incompetent.

If filing for VMLI benefits, the following documentation is needed: insured s death certificate, and a payoff statement from the Veteran s or Servicemember s mortgage lender showing the outstanding mortgage balance owed as of the Veteran s or Servicemember s death.

An insured s will can be used as evidence that he or she intended a lump sum payment, regardless of when it was executed. The will does not have to specifically mention the insurance, nor must it be probated.
A letter claiming the proceeds and showing a mailing address for the check may be used instead of a VA Claim Form (29-4125). The claimant should be sure to show the insurance file number and to sign the letter.
An insured can surrender the policy for its cash value by submitting VA Form 29-1546, page 1. An insured can request a loan against the cash value of the policy by submitting VA Form 29-1546, page 2, or by applying online. This program is excluded from coverage under OMB Circular No. A-87.

Aplication and Award Process

Preapplication Coordination

Preapplication coordination is not applicable.

Environmental impact information is not required for this program.

This program is excluded from coverage under E.O.


Application Procedures

This program is excluded from coverage under OMB Circular No. A-102. This program is excluded from coverage under OMB Circular No. A-110. The Department of Veterans Affairs Regional Office and Insurance Center (VAROIC) manages the six insurance programs administered directly by VA (USGLI, NSLI, VSLI, VRI, S-DVI and VMLI). The Insurance Center is responsible for processing loans, and paying death and disability claims. For these programs, all death claims should be mailed or faxed to the Insurance Center in Philadelphia, PA.

Award Procedures

Direct Insurance payments can be directly deposited into a claimant s account. The claimant must provide their checking or savings deposit account number as well as their social security number. Claimants must also provide the name, address, phone number, and the routing transit number for their financial institution. If the award check is to be mailed to the claimant s bank account, the account number and type of account (checking or savings) must be shown on the claim in addition to the name and address of the bank.


Contact the headquarters or regional office, as appropriate, for application deadlines.


War Risk Insurance Act, Public Law 65-90, 38 U.S.C 1903-1941; National Service Life Insurance Act, Public Law 76-801; Servicemen"s Indemnity and Insurance Act, Public Law 82-23; World War Veterans Act, Public Law 68-242.

Range of Approval/Disapproval Time

Most death awards are authorized by the Insurance Center within 10 days of receipt of the documents needed for payment.


Not Applicable.


Not Applicable.

Assistance Considerations

Formula and Matching Requirements

Statutory formulas are not applicable to this program.
Matching requirements are not applicable to this program.
MOE requirements are not applicable to this program.

Length and Time Phasing of Assistance

None. Method of awarding/releasing assistance: lump sum.

Post Assistance Requirements


Not Applicable.


Not Applicable.



Financial Information

Account Identification

36-8132-0-1-701; 36-8150-0-1-701; 36-4010-0-1-701; 36-4012-0-1-701; 36-0120-0-1-701; 36-8455-0-1-701.


(Insurance) FY 09 $0; FY 10 est not reported.; FY 11 est not reported. - Death claims, disability claims, mature endowments, cash surrender, dividends, interest paid on dividend credits and deposits, policy liens established.

Range and Average of Financial Assistance


Regulations, Guidelines, and Literature

Not Applicable.

Information Contacts

Regional or Local Office

See Regional Agency Offices. For all States, contacts the Department of Veterans Affairs, P.O. Box 42954, Philadelphia, PA 19101. This office should also be contacted about Veterans Mortgage Protection Life Insurance.

Headquarters Office

Michelle Staton P.O. Box 42954, Philadelphia, Pennsylvania 19101 Email: Phone: 1-800-669-8477

Criteria for Selecting Proposals

Not Applicable.

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