WASHINGTON – The Department of Veterans Affairs (VA) is announcing its distribution of more than $568 million in dividends to 1.5 million active policyholders of veterans life insurance.
Over the next year, veterans will receive the payments on the anniversary date of their policies, with the specific dividend amount varying according to age, type of insurance and length of time the policy has been in force. Recipients will automatically receive their annual dividend through one of the nine payment options they have selected in advance.
For current active-duty servicemembers and reservists covered by Servicemembers' Group Life Insurance, no dividend is paid.
Dividends cover only veterans with government life insurance policies who served between 1917 and 1956. Veterans of subsequent eras are covered by government insurance programs that do not pay dividends.
However, for some older policies still in force today, the dividends represent a return of trust fund earnings on the premiums paid by policyholders through the years. These funds reflect the fact that veterans are living longer than originally predicted and are also attributable to the higher than expected yields earned by the trust funds from investments in U.S. government securities.
Only those with policies that have been kept in force when premiums were required are eligible for the payout. Inaccurate stories periodically surface suggesting that those who have not maintained insurance are eligible for a special distribution if they contact VA, but this is false. Dividends are automatically sent to eligible policyholders.
The largest group receiving 2003 payments will be 1.3 million veterans of World War II with National Service Life Insurance ("V") policies. Total payments are expected to reach $461.5 million.
Dividends totaling $2.2 million will be paid to the 12,499 veterans holding U.S. Government Life Insurance ("K") policies.
Some 206,367 veterans who have maintained Veterans Special Life Insurance ("RS" and "W") policies can expect to receive dividends totaling $88 million.
Veterans who hold Veterans Reopened Insurance ("J", "JR" and "JS") policies, currently numbering 57,048, will share a $17.2 million dividend.
Although VA also administers a special life insurance program for disabled veterans and a program offering mortgage life insurance coverage, neither pays dividends.
Veterans who have questions about their policy may call the VA Insurance toll-free number: 1-800-669-8477, or may send their e-mail to: VAinsurance@vba.va.gov.
