§1924 In-service Waiver of Premiums

Summary

For National Service Life Insurance and United States Government life insurance policies that were in force on January 1, 1959, the government will waive certain premiums while the person stays on continuous active service and for 120 days after. The waiver covers all five-year level term premiums and the part of permanent premiums that pays for the pure insurance risk. While premiums are waived, the policy will not earn dividends. If the policy becomes payable while the waiver is in effect, the United States will pay the extra amount needed so the reserve plus the payment equals the policy’s benefit. The Secretary will use chosen mortality tables and interest at 2¼ percent, 3 percent, or 3½ percent per year (depending on the policy) and will transfer funds between the insurance appropriations and funds as needed. For policies that mature on or after January 1, 1972, the amount of premiums waived on and after that date, minus dividends, is treated as a debt against the policy and will be taken from the payout unless paid. The government’s payment above is reduced by the amount so deducted.