When the United States entered into World War I, many of the serviceman who were volunteered or drafted suddenly found their life insurance policies altered so the policies would not cover a member of the military if he got killed in combat. A similar practice was used for sailors sailing on merchant marine ships that brought supplies and weapons to the allied nations. Congress responded by offering government insurance that private individuals could buy.
When Veteran’s Life Insurance Became Privatized
The government changed its program several times since Veterans Life Insurance was introduced during World War I. The programs were administered solely by the Veteran’s Administration up until 1966. The cost of insuring soldiers made the government look for ways to reducing the costs when the Vietnam Conflict began to escalate.
The Johnson administration decided to work with private insurance companies to help cover members of the military who were deployed anywhere in the world. Private Veteran’s Life Insurance Policies work the same way as military life insurance did in the past.
How Private Veteran’s Life Insurance Policies Work
When a person enters any branch of the service, he has the option to buy a policy that covers him for up to $250,000. This is the one benefit a person can keep even if he does not complete the basic training. The military automatically the payments from the paycheck of service members, but when a service member enters Civilian life, he must elect to keep up the payments. He can change the level of coverage if he so chooses at this point.
If he keeps up the payments on the private veteran’s life insurance plan for five years without a lapse, the policy automatically gets renewed. If a person lets his veteran’s life insurance policy lapse for any reason, he has a limited period to renew it.