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10.2. Plans of Insurance

Government Life Insurance is issued in a variety of insurance plans.  Select a plan below to view a brief description of that plan.  This information is for policy numbers beginning with K, V, RS, W, J. JR. JS and RH.  Information for: Servicemembers' Group Life Insurance policies (SGLI) and Veterans' Group Life Insurance policies (VGLI).

• 5 Year Level Premium Term
• Modified Life at Age 65
• Modified Life at Age 70
• Special Ordinary Life
• Ordinary Life
• 20 Payment Life
• 30 Payment Life
• 20 Year Endowment
• Endowment at Age 60
• Endowment at Age 65
• Endowment at Age 96

Five Year Level Premium Term

• Available on all programs except "J," "JR," "JS"
• Renewable every five years
• May be converted to a permanent plan
• Provides low cost protection at younger ages but premiums increase substantially at older ages
• Provides protection only and has no cash or loan values *
• When premiums are not paid, the protection stops *

* Effective September 11, 2000, "capped" NSLI (V) and VSLI term policies receive a termination dividend that protects against the lapse of the policy. See more information about premium capping.

Modified Life at Age 65

• Available on all programs except "K"
• Can only be purchased before the insured attains insurance age 61
• Affords a permanent plan of insurance at a premium that is lower than the Ordinary Life Plan premium
• Provides an automatic reduction by ? of the face amount of the insurance on the day before the policyholder's 65th birthday. (The premium remains the same. The decreased amount of insurance may, without medical examination, be replaced with an Ordinary Life policy at an additional premium by making application no later than the day before the policyholder's 65th birthday.)
• Policy earns loan and cash values

Modified Life at Age 70

• Available on all programs except "K"
• Can only be purchased before the policyholder attains insurance age 69
• Affords a permanent plan of insurance at a premium that is lower than the Ordinary Life Plan premium
• Provides an automatic reduction by half of the face amount of the insurance on the day before the insured veteran's 70th birthday. (The premium remains the same. The decreased amount of insurance may, without medical examination, be replaced with a Special Ordinary Life policy at an additional premium by making application no later than the day before the policyholder's 70th birthday.)
• Policy earns loan and cash values

 

Special Ordinary Life

This is insurance that is purchased when a Modified Life policy reduces by half on the policyholder's 65th or 70th birthday.  It has the following features:

• Available on all programs except "K"
• Premiums will never increase
• Premiums are payable for the lifetime of the policyholder
• Policy earns loan and cash values

Ordinary Life

• Available on all programs
• Premiums remain constant
• Premiums are payable for the lifetime of the policyholder
• Policy earns loan and cash values

30 Payment Life

• Available on all programs
• Premiums are slightly higher than on Ordinary Life
• Premiums are payable for 30 years from the effective date of the policy
• Policy earns loan and cash values

20 Payment Life

• Available on all programs
• Premiums are higher than on 30-Payment Life
• Premiums are payable for 20 years
• Policy earns loan and cash values

20 Year Endowment

• Available on all programs
• Premiums are payable for 20 years from the effective date of the policy
• Provides for payment of the face amount of the policy (less any indebtedness) to the policyholder at the end of the 20 years
• Policy proceeds paid in lump sum or on an installment basis
• Policy earns loan and cash values

Endowment at Age 60

• Available on all programs except "K"
• Provides for the payment of the face amount (less any indebtedness) on the anniversary date nearest the policyholder's 60th birthday
• Policy earns loan and cash values

Endowment at Age 65

• Available on all programs except "K"
• Provides for the payment of the face amount (less any indebtedness) on the anniversary date nearest the policyholder's 65th birthday
• Policy earns loan and cash values

Endowment at Age 96

• Available to "K" policyholders, age 65 or older, who were still carrying insurance under the term plan
• Regular endowment plan maturing at age 96 with a level premium from the date of issue
• Does not provide permanent and total disability benefits, or waiver of premium
• Provides a waiver of premiums provision to be purchased for an additional premium at the time the insurance was exchanged