1.2. Dividend Rumors
During the past fifty years or so there have been a number of insurance dividend rumors. The most prevalent and longest lasting rumor of all is the "special dividend" rumor.
Rumors that Congress approved a "Special Dividend" for veterans who do or do not have Government life insurance have been spread for over 30 years. These rumors are false. The only dividends being paid by VA are on active Government life insurance policies. Dividends on active policies have been paid annually for many years and policyholders do not need to apply for them. "Special Dividend" rumors are spread by well-meaning people who want to help veterans but fail to check out their sources before passing the information along to others.
Notices such as the sample shown below have appeared in veterans' magazines, union newspapers, fraternal publications, newspapers and every other publication imaginable and of course on the internet. The hoax has appeared in many forms and seems to change to fit the times. It started in the 1960's as a rumor about veterans with WW II insurance. More recently, it has been adapted to state that a dividend is being paid on Servicemembers' Group Life Insurance (SGLI) or Veterans' Group Life Insurance (VGLI) coverage. VA has done everything possible to stamp out the rumor but it still persists.
You can help by returning the false information you received to its source and telling whoever gave it to you that you know for certain there is no such dividend. If you have any questions about this hoax, or any other matter related to veterans issues please don't hesitate to contact the VA at the above telephone number and address.