Government Life Insurance

Definition of "Government life insurance"

Shelly-Ann Welch real estate agent

Written by

Shelly-Ann Welchelite badge icon

The Listing House

Coverage for present and past U.S. uniformed services members under one of these programs:

  1. United States Government Life Insurance (USGLI) established in 1919 to provide RENEWABLE TERM LIFE INSURANCE up to $10,000.This program is no longer available.
  2. National Service Life Insurance (NSLI) established in 1940 to take the place of USGLI; terminated in 1950. Today NSLI exists for amounts ranging from $1000 to $10,000 under five-year renewable term and permanent forms of life insurance. The latter policies have the same non forfeiture benefits and OPTIONAL MODES OF SETTLEMENT as COMMERCIAL FORMS of life insurance.
  3. SERVICE MEN'S GROUP LIFE INSURANCE (SGLI) established in 1965 to cover active members of the U.S. uniformed forces; purchased through commercial insurance companies on a group basis at a government subsidized rate. Each service person pays a premium that reflects nonmilitary mortality expectation and administrative expenses. The federal government subsidizes the premium by paying for any extra mortality and administrative expenses associated with the military exposure. Upon discharge, a SGLI policy can be converted, regardless of physical condition, to a five-year nonrenewable Veterans Group Life Policy (VGLI), and then can be converted (after five years) again regardless of health to an individual life policy with any of the participating commercial life insurance companies.
  4. VETERANS GROUP LIFE INSURANCE (VGLI) nonrenewable convertible five-year term insurance to which SGLI is converted at the time a service person is discharged. It has no cash or loan value, disability benefits, paid-up benefits, or extended term benefits. It can be converted to an individual policy with a participating company.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Insurance Terms

Provision in property insurance that waives, under specified circumstances, the requirement for an inventory of undamaged property when a damage claim is filed. A coinsurance clause in a ...

Same as term Captive Insurance Companies Association (CICA): trade association located in New York City, consisting of approximately 200 captive insurance companies. The objective of the ...

Latin expression meaning "let the buyer beware." The purchaser buys a product or service at his or her own risk. This principle has been modified significantly as it relates to an insurance ...

Insured sum paid regularly to a married partner (usually a wife but sometimes a husband) of a retired worker. There are several forms: The Federal Retirement Equity Act mandates a spouse's ...

Liability policy that covers all liability exposures for a large group that has something in common. For example, wrap-up insurance can be written for all the various businesses working ...

Right of an insured to make additional purchases of life insurance without having to take a physical examination or show other evidence of insurability. Additions can be bought at stated ...

Method used to determine the policyholder's return on premiums paid into a life insurance policy. This method is illustrated in two ways:.Surrender of Policy Approach calculation of the ...

Termination of a policy. Contract may be terminated by an insured or insurer as stated in the policy. If the insurance company cancels a policy, any unearned premiums must be returned. If ...

Stipulation that no claim will be paid until a loss exceeds a flat dollar amount or a given percentage of the amount of insurance in force. After the loss exceeds this dollar amount or ...

Popular Insurance Questions