3.3: Insurance
Maintain a high level of service to insurance policy holders and their beneficiaries to enhance the financial security for
veterans’ families.
Other Information:
Purpose and Outcomes: Servicemembers placed in harm’s way do not have the same access to life insurance benefits as those
citizens who do not serve their Nation. Also, veterans with disabilities cannot obtain comparable insurance coverage as compared
to healthy individuals. The purpose of VA’s insurance programs is to provide those benefits that servicemembers and veterans
cannot obtain. The outcome of the VA insurance programs is the additional financial security provided to active duty personnel
and their families through life insurance coverage and options to veterans and servicemembers that are competitive and comparable
to healthy individuals and those who do not have military service. The four insurance programs currently available are: •
Service-Disabled Veterans Insurance (S-DVI) – Providing insurance coverage and services to disabled veterans and their families;
• Servicemembers Group Life Insurance (SGLI) – Providing insurance coverage and services to active duty and reserve members
of the uniformed services and their families; • Veterans Group Life Insurance (VGLI) – Providing term insurance options to
veterans transitioning from active duty; and • Veterans Mortgage Life Insurance (VMLI) – Providing mortgage life insurance
to severely disabled veterans. VA has developed outcomes for the insurance programs, utilizing program evaluations and program
reviews. The outcomes for the VA Insurance Programs are: • S-DVI - Insurance coverage available at standard preminum rates
for a reasonable time period following release from service and establishment of a service-connected disability; • SGLI –
Insurance coverage and conversion privileges unaffected by military service, are available to servicemembers and are comparable
to group life insurance offered by large-scale employers to their employees and their families; • VGLI – Term insurance is
available to separating servicemembers that is comparable to what a healthy individual could obtain in the commercial insurance
market; and • VMLI – Veterans with severe serviceconnected disabilities can purchase mortgage life insurance comparable to
that offered by commercial companies to healthy individuals. The number of veterans, servicemembers, spouses and children
VA serves will decline steadily as World War II, Korean Conflict, and Vietnam Era veterans age and die. At the end of FY 2002,
VA served approximately 4.5 million servicemembers and veterans and 3.1 million spouses and children. By 2008, that number
is expected to decline to approximately 3.8 million servicemembers and veterans and 3.1 million spouses and children. Strategies
and Processes: VA will implement the following strategies to assist active duty members, reservists, and veterans to obtain
life insurance coverage and benefits and receive world-class service: • VA will provide life insurance benefits and services
in an accurate, timely and courteous manner and at the lowest achievable cost; • VA will provide veterans with easy access
to information and the opportunity to interact with VA for benefits and services at a convenient time and place. Through the
Internet and through enhanced telephone service, veterans and beneficiaries can access information and provide information
to the VA about their insurance policies; and • Through enhanced partnerships with DoD and other organizations, VA will inform
servicemembers of insurance benefits and services as they enter duty and as they transition to civilian life, and use improved
interactions through outreach to thereafter service their policies. External Factors: • Legislation – Continuing to keep pace
with insurance coverage amounts and competitive rates will require legislation.
Indicator(s):
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