(UNTITLED)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP57-00384R001200020079-3
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 4
• Document Creation Date: December 9, 2016
• Document Release Date: February 26, 2001
• Sequence Number: 79
• Publication Date: August 1, 1946
• Content Type: REPORT

Approved For Relea 001/08/24 : CIA-RDP57-00384ROO1204WO079-3
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VETERANS ADMINISTRATION
*OGC Has Reviewed* Public Relations Office
EX. 4120 Br. 2o14
Au,ust 1, 1911.6
Washington 25, D. C.
Insurance benefits to veterans were ma t eriall2T extended
and lib,r-alized. today when President Truman signed the Congressional
Act amending the National Service Life Insurance ,ct of 1940, it was
announced by the Veterans Administration.
-
As originally enactad Nn .wtionaJl _ Service Life Insurance was
designed to meet the needs of men and women at war. The new anend.-
ments provide for liberalization to make it more attractive in peace
time .
They off ,--r endowment types of policies which /ere not
included. in the original law; permit the naming of beneficiaries
outside the restricted classes included in the original bill, offer
lurnp sum payments and total dissability? benefits which were not
Previously included.
The VA said. that holders of about 6 million NSLI policies
now in force are eligible for the benefits provide by these new
amendments. In addition, those veterans who formerly held some 10
million policies that have, lapsed may still be entitled to reinstate
them and take advantage of the low cost protection provided for
their families by GI insurance.
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TYPES OF POLICIES
Those veterans who are now holding terra insurance policies
need feel no compulgion to lake an immediate change in the insurance
they are carrying, as they have ample time to give mature considera-
tion to their insurance programs. Term insurance policies issued.
before January 1, 1946 may b? continued without change for 3 -ears
from the date they were issued, and policies issued after December
31, 1945 are good. for 5 years without the necessity of converting to
any of the more pormenent types of insurance.
.is originally issued. the permanent policies provided. in
National Service Life Insuratirico were: ordinary life, on which the
policyholder pays for as long as he lives at a level premium; 20-
payment life, on which premiums are paid, for 20. ~, ears and. after
which no more premiums are required.; and 30-payment life, on which
premiums are paid for 30 years.
In addition to these typos of policies the amendments
provide for 20-year endowment policies, endowment at age 60 and.
endowment at ago 65. On all of these endowment policies the
premiums must be paid for the ind.i_cated length of time, at the
expiration of which the face of the policy may be paid to the
veteran. Those veterans who have converted their torsi insurance to
one of the previously authoriz.;d plans are p ormitted under the
amendments to change to one of the endowment plans if they wish.
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BENEFICI FRIES
:ill restrictions on th choice of beneficiaries which were
imposed by the original Act have been removed. Formerly the insured
was permitted only to designate beneficiaries who wore near relatives,
He now may designate any person or persons, a corporation or his
estate as beneficiary in his insurance policy.
MODES OF SETTLEMENT
The only method of settlement previously provided was
monthly income or annuity payments which were provided for a
guaranteed period of 120 months ozr:as a refund life income, paid in
equal monthly- installments with the guarantee that the face of the
policy would be repaid. Those forms of payment are still available.
In addition to thorn the amendments provide an option under
which the insured may have his insurance paid in a single luiip sum
to beneficiaries, or he may elect for payments to be made in equal
monthly installments ranging from 36 to 240 months.
TOTAL DIS."J3ILITY BENEFITS
. new feature added to the insurance by these amendments
is the payment of benefits to an insured who is totally disabled.
for as long as six months. Those payments are at the rate of $5 a
month for each $1,000 of insurance and are payable for as long as
the disability exists. The insurance itself is not affected, by
these payments so that beneficiaries enjoy the full face value of
the policy upon the death of the insured. The new total disability
feature may be added to any form of NSLI, including term insurance.
It is only necessary that the insured meet specified health require-
ments and pay the extra premium that is required for this additional
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benefit .
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APPLICATION FOR NETT INSURANCE
All persons ,The served in the armed forces between October
8, 1940 and September 2, 1945 q?.,re entitled to apply for new 1,S1I .
The total amount of Government life insurance which may be carried
by any applicant may not exceed a1O, 000. The application may be filed
at any time and will be granted upon proof teat the applicant meets
the required health standards. This is definite change from the
previous provision which limited all. veterans to the amount of insur-
ance they had while in service.
REJECTED, APPLICATIONS
Applications for insurance which were rejected solely for
health reasons between October 8-, "1.940 and September 2, 10,4 5 are
validated by these amendments in cases where the applicant were
killed or totally disabled in line of duty w'::.ile in service. This
amendment will provide income for beneficiaries who receive 1-io
insurance payments under the old law.
MISCELLANEOUS PROVISIONS
Numerous miscellaneous provisions are included in the
amendments. Most of them are of technical nature or are applicable
to limited groups. They include the right to assign a beneficiary's
,interest to specified relatives of the insured provided payment of
the insurance has not started. Present beneficiaries under insurance
on which payments started before September 30, 11-)42f are permitted to
select refund life income payment- instead of former modes of settle-
ment. Those eligible will be notified of their rights by the VA. an.d
need not make inquiry. Also, suits in United States courts are
authorized in cases where there is any disagreement over claims.
END
Approved For Release 2001/08/24: CIA-RDP57-00384R001200020079-3