PRIA, Government Policy, Made Personal

Summary

The Secretary must add a total-disability option to most National Service Life Insurance policies if the insured asks for it, proves they are in good health to the Secretary’s satisfaction, and pays an extra premium. If the insured becomes totally disabled for six straight months after the date they applied and before they turn 65, and their premiums are current, they will get monthly payments starting on the first day of the seventh month. The payment is $10 for every $1,000 of insurance in force while the disability continues. You cannot get this option on policies issued under section 620 of the 1940 Act or section 1922. You must apply for the option before your 55th birthday, or before your 60th birthday and before January 1, 1966. If a policy already has older total-disability coverage, the new option can only be added if the old coverage is given up, good health is shown if required, and any extra premium is paid. Policies that pay disability benefits may be treated separately when dividends are figured.

Title 38, §1915

Veterans' Benefits, Source: USLM XML via OLRC

The Secretary shall, except as hereinafter provided, upon application by the insured and proof of good health satisfactory to the Secretary and payment of such extra premium as the Secretary shall prescribe, include in any National Service Life Insurance policy on the life of the insured (except a policy issued under section 620 of the National Service Life Insurance Act of 1940, or section 1922 of this title) provisions whereby an insured who is shown to have become totally disabled for a period of six consecutive months or more commencing after the date of such application and before attaining the age of sixty-five and while the payment of any premium is not in default, shall be paid monthly disability benefits from the first day of the seventh consecutive month of and during the continuance of such total disability of $10 for each $1,000 of such insurance in effect when such benefits become payable. The total disability provision authorized under this section shall not be issued unless application therefor is made either prior to the insured’s fifty-fifth birthday, or before the insured’s sixtieth birthday and prior to January 1, 1966. The total disability provision authorized under this section shall not be added to a policy containing the total disability coverage heretofore issued under section 602(v) of the National Service Life Insurance Act of 1940, or the provisions of this section as in effect before January 1, 1965, except upon surrender of such total disability coverage, proof of good health, if required, satisfactory to the Secretary, and payment of such extra premium as the Secretary shall determine is required in such cases. Participating policies containing additional provisions for the payment of disability benefits may be separately classified for the purpose of dividend distribution from otherwise similar policies not containing such benefits.

Notes & Related Subsidiaries

Editorial Notes

References in Text

section 620 of the National Service Life Insurance Act of 1940, referred to in text, is section 620 of act Oct. 8, 1940, ch. 757, title VI, pt. I, as added Apr. 25, 1951, ch. 39, pt. II, § 10, 65 Stat. 36, which enacted section 821 of former Title 38, Pensions, Bonuses, and Veterans’ Relief, and which was repealed and the provisions thereof reenacted as section 722 [now 1922] of this title by Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1105. section 602(v) of the National Service Life Insurance Act of 1940, referred to in text, is section 602(v) of act Oct. 8, 1940, ch. 757, title VI, pt. I, 54 Stat. 1009, which enacted section 802(v) of former Title 38, Pensions, Bonuses, and Veterans’ Relief, and which was repealed and the provisions thereof reenacted as this section and section 721 [now 1921] of this title by Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1105.

Amendments

1991—Pub. L. 102–83, § 5(a), renumbered section 715 of this title as this section. Pub. L. 102–83, § 5(c)(1), substituted “1922” for “722”. Pub. L. 102–83, § 4(b)(1), (2)(E), substituted “Secretary” for “Administrator” wherever appearing. 1964—Pub. L. 88–355 authorized issuance of total disability income provisions to provide coverage to age 65 instead of to age 60, provided that said provisions shall not be issued unless application therefor is made either prior to the insured’s 55th birthday, or before the insured’s 60th birthday and prior to Jan. 1, 1966, and inserted “or the provisions of this section as in effect before January 1, 1965” before “except upon surrender”, and “if required” after “proof of good health.”

Statutory Notes and Related Subsidiaries

Effective Date

of 1964 Amendment Pub. L. 88–355 provided that the amendment made by Pub. L. 88–355 is effective Jan. 1, 1965.

§1915 Total Disability Income Provision