§1980 Option to Receive Accelerated Death Benefit

Summary

Allows someone with Servicemembers’ Group Life Insurance (SGLI) or Veterans’ Group Life Insurance (VGLI) who is terminally ill to get part of their life insurance paid now as a one-time lump sum. A person is terminally ill if a doctor says their life expectancy is less than a time set by the Secretary, and that time cannot be more than 12 months. The Secretary will set the maximum amount that can be paid, but it cannot be more than 50 percent of the policy’s face value when the payment is approved. A person can choose a smaller amount, in steps the Secretary sets. The rest of the insurance stays for later payment. Deductions under section 1969 and premiums under section 1977(c) are cut in the same percentage, starting with amounts due on or after the payment date. The Secretary must make rules on how to apply. The choice is final and can be made only once. If SGLI is later converted to VGLI, the amount paid reduces VGLI under section 1977(a). The money received is not counted as income or resources for federal or federally-assisted programs.