Service-Disabled Veterans Insurance

Veterans who are granted a service-connected disability but are otherwise in good health may apply to VA for up to $10,000 life insurance coverage. The following is a summary of Service Disabled Veterans Insurance:

• Service-Disabled Veterans Insurance Overview
• Eligibility For S-DVI Insurance
• Eligibility For Supplemental S-DVI
• Gratuitous S-DVI
• Premiums For S-DVI Insurance
• Disability Provisions

Service-Disabled Veterans Insurance

The Service-Disabled Veterans Insurance (S-DVI) program was established in 1951 to meet the insurance needs of certain veterans with service connected disabilities. S-DVI is available in a variety of permanent plans as well as term insurance. Policies are issued for a maximum face amount of $10,000.

Veterans who are totally disabled may apply for a waiver of premiums. For those who are eligible for this waiver, an additional policy of up to $20,000 is available. Premiums, however, cannot be waived on the additional insurance.

Eligibility For S-DVI Insurance ("RH")

You are eligible if you if:

• You have received a rating for a service-connected disability.
• You apply for the insurance within two years from the date service-connection is established. (Public Law 102-86 extended the initial one-year limit for service-connection grants made on or after September 1, 1991.)
• You are in good health with the exception of your service-connected disabilities.

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Eligibility For Supplemental S-DVI ("Supplemental RH")

The Veterans' Benefits Act of 1992, provided for $20,000 of supplemental coverage to S-DVI policyholders. Premiums may not be waived on this supplemental coverage. You may be eligible for this waiver if you are a S-DVI policyholder and you meet the following criteria:

• You are eligible for a waiver of premiums.
• You apply for the coverage within one year from notice of the grant of waiver.
• You a re under age 65

To apply for Supplemental S-DVI, you must file VA Form 29-0189, Application for Supplemental Service-Disabled Veterans (RH) Life Insurance or send a letter requesting this insurance over your signature. You must apply for the coverage within one year from notice of the grant of waiver of premiums.

Gratuitous S-DVI ("ARH")

Congress enacted legislation in 1959 to protect veterans who become incompetent from a service connected disability while eligible to apply for S-DVI, but who die before an application is filed. "ARH" insurance is:

• Issued posthumously;
• Payable to a preferred class of the veteran's relatives;
• Payable in a lump sum only.

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Premiums For S-DVI Insurance

To provide financial relief from the high premium rates at advanced ages, "RH" term premiums were "capped" at the age 70 renewal rate effective November 1, 2000. This means that the annual premium for these policies will not exceed $69.73 per $1,000 of coverage.

Premiums charged for S-DVI coverage are as follows:

• Based on the rates a healthy individual would have been charged when the program began in 1951.
• Waived for totally disabled veterans (36% of S-DVI policyholders).
• Insufficient to pay all of the claims because the program insures many veterans with severe disabilities.
• Supplemented on an annual basis by Congressional appropriations.

There are no reserves or surplus funds in this program. Therefore, dividends are not paid.

Disability Provisions

S-DVI policies (except supplemental coverage) provide for the following disability benefits:

• A waiver of premiums at no extra cost based on the insured's total disability lasting six months or longer and starting before age 65;
• A total disability premium waiver in cases where the total disability commenced prior to the effective date of the policy, providing the total disability is service-connected.

The optional Total Disability Income Provision is not available under this program.

Qualified veterans can apply online for S-DVI coverage at the Department of Veteran Affairs S-DVI Website.