By Debbie Gregory.
The VA is expected to pay over $100 million in life insurance dividends this year.
Dividends are the portions of the insurance company’s profits that are paid to policy holders, as if they were stock holders or investors. Over the course of 2015, the U.S. Department of Veterans Affairs (VA) is expected to pay $117.4 million to approximately 505,000 Veterans who served in the Armed Forces before 1956 and hold qualifying life insurance policies.
The VA will pay a combined total of $74 million to qualifying Veterans of World War II, who hold National Service Life Insurance policies, and whose policy numbers begin with the letter “V.”
The department is expected to pay a combined total of $40.6 million to Korean War era Veterans who hold Veterans’ Special Life Insurance policies, whose policy numbers begin with either “RS” or “W.”
The VA says that a combined total of $2.7 million will be paid to World War II era Veterans holding Veterans’ Reopened Insurance policies, whose policy numbers begin with either “J,” “JR,” or “JS.”
Additionally, a combined total of $120,000 is expected to be paid to Veterans who served after World War I, and up to 1940, and who hold U.S. Government Life Insurance policies, with policy numbers beginning with the letter “K.”
In order to be eligible to receive the dividends, Veterans must have had these VA life insurance policies in effect since they left the military, and would have received annual notifications about their policies.
There is no action required on the part of the Veterans who are due dividends. The VA will automatically pay the dividend on the anniversary date of the policy, and send the money to the insured Veteran. Dividend amounts will vary, based on the Veteran’s age, insurance type, and length of time that the Veteran has had the policy.
The VA administers the country’s 10th largest life insurance program, providing coverage to approximately seven million service members, as well as Veterans and their families, totaling $1.3 trillion in coverage.
Veterans who have questions about their policies should contact the VA at 1-800-669-8477 or email [email protected].
For more information on VA life insurance, see http://www.benefits.va.gov/insurance/.
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Military Connection: VA Life Insurance Dividends: By Debbie Gregory