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in caring for veterans (assistance for 10,479 in fiscal year 1978) and State nursing home care (9,074 in fiscal year 1978).

LOANS

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Eligibility:-Any person who served in the armed services at any time on or after September 16, 1940, and prior to July 26, 1947, or on or after June 27, 1950, and prior to February 1, 1955, or on or after August 5, 1964 and prior to May 8, 1975, discharged under conditions

other than dishonorable after active service of 90 days or more or b

because of disability incurred in line of duty is eligibie. Any person whose entire active duty occurred between July 26, 1947, and June 26, 1950, or who has served on active duty after January 31, 1955, and

prior to August 5, 1964, or after May 7, 1975, is also eligible provided [ such service was for a minimum of 181 continuous days and the vet

eran was discharged or released under conditions other than dishonorable, or he or she served less than 181 days and was discharged or released for a service-connected disability. Persons currently serving on active duty are likewise eligible provided they have served more than 180 days and continue on active duty without a break therein. There is no time limit for making application for loan guaranty benefits to which a veteran is entitled. If eligibility is based on an active duty status entitlement is available so long as the serviceperson remains on active duty without a break in service. Widows or widowers of deceased veterans whose death was due to service and spouses of missing in action personnel and prisoners of war may also qualify.

Conventional homes and condominiums.—Loans are guaranteed in an amount not more than 60 percent of the loan, but not to exceed $25,000. There is no maximum loan size, but on larger loans the percentage of guaranty decreases. Interest may be charged at a rate set by the Administrator to meet the current market needs, repayable in not more than 30 years and 32 days. Under certain conditions, the Veterans' Administration is authorized to lend up to $33,000 directly to the veteran when private sources are not available.

Mobile Homes.-Loans for the purchase of mobile homes, or mobile home lots, or both, are guaranteed in an amount not more than 50 percent of the loan, but not to exceed $17,500. There is no maximum loan size, but on larger loans the percentage of guaranty decreases. Loans for the purchase of a lot only, a single-wide mobile home only, or both a single-wide unit and lot are repayable in not more than 15 years and 32 days. Loans for the purchase of a double-wide mobile home, or a double-wide unit plus lot are repayable in not more than 20 years and 32 days.

INSURANCE

NATIONAL SERVICE LIFE INSURANCE (WORLD WAR II)

Enacted October 8, 1940, this law applied to all individuals who entered active military, naval, or air service, on or after that date, and was permissive, not mandatory. Until April 25, 1951, the insurance was issued to persons in the active service and to certain World War II veterans. Insurance was issued upon application in multiples of $500, but not less than $1,000 or more than $10,000. Effective July 1, 1972, dividends may be used to purchase additional insurance in excess of the $10,000 limitation.

Types of insurance.Any of the following types of policies were authorized:

1. 5-year level premium term.
2. Ordinary life.
3. 20-payment life.
4. 30-payment life.
5. 20-year endowment.
6. Endowment at age 60.
7. Endowment at age 65.

8. Modified life. A 5-year level premium term policy which has not been exchanged or converted for one of the policies indicated above (2–8) and which is not lapsed is automatically renewed as a level premium term policy for successive periods of 5 years at the premium rate for the then attained age without medical examination. Lapsed policies are renewed after expiration of the term period only in the event the lapse occurred not earlier than 2 months prior thereto. The modified life plan of insurance provides a level premium throughout the insured's life but the face value of the policy is reduced 50% just prior to the veteran's 70th birthday. To replace this reduced insurance, the insured could be issued insurance on the ordinary life plan upon application and payment of the required premium.

VETERANS OF SERVICE BETWEEN JUNE 27, 1950, AND DECEMBER 31, 1956

Individuals serving in this period were covered by a $10,000 servicemen's indemnity payable only in the event of death, to members of the immediate family, in increments of $92.20 monthly for 10 years. Within 120 days after discharge (but not after December 31, 1956) the veteran continued to be covered by the indemnity and could, if he or she desired, take a $10,000 nonparticipating, nonconvertible term insurance policy. Effective January 1, 1959, any such policy may be converted to a new type of permanent plan insurance or exchanged for a limited convertible term policy.

SERVICE DISABLED VETERANS' INSURANCE

This type of national service life insurance is available, on either term or permanent plans, to veterans released or separated from active service on or after April 25, 1951, under other than dishonorable conditions. The veterans must have a service-connected disability for which compensation would be payable if 10 per centum or more in degree, and must not have a non-service-connected disability which renders them uninsurable. Application must be made within 1 year from the date service connection of their disability is determined by the Veterans' Administration. Payment or waiver of premiums is required. Under certain conditions veterans who did not apply and who became mentally incompetent from a service-connected disability are deemed to bave applied for and been granted insurance, which is payable only to a limited class of beneficiaries.

VETERANS DISCHARGED FOR THE FIRST TIME AFTER DECEMBER 31, 1956

Eligible only if qualified for service disabled veterans' insurance.

CERTAIN VETERANS OF SERVICE AFTER OCTOBER 7, 1940, AND BEFORE

JANUARY 1, 1957 During the period May 1, 1965, through May 2, 1966, individuals who were eligible to apply for National Service Life Insurance after October 7, 1940, and before January 1, 1957, and who were suffering from (1) a service-connected disability, but who were insurable according to the standards of good health established by the Administrator of Veterans Affairs notwithstanding that disability; (2) a serviceconnected disability or disabilities which rendered them uninsurable according to the standards of good health established by the Administrator; or (3) a non-service-connected disability of such severity as to render them unable to obtain commercial life insurance at any rates, could be granted non-participating insurance under plans 2–8 above. The premium rates include amounts necessary to cover Government administrative costs. This insurance was not available to certain Philippine veterans or to persons on active duty.

Beneficiaries.--At present time limited only by the choice of the insured. Modes of settlement

1. Lump sum.

2. In equal monthly installments of from 3 years (36 months) to 20 years (240 months) in multiples of 12.

3. In equal monthly installments for 10 years (120 months) certain with such payments continuing during remaining lifetime of first beneficiary.

4. As a refund life income in such manner to provide payment of face value of policy and continuing throughout life of first beneficiary.

5. If no method of settlement is designated by the insured then the insurance is payable in 36 equal monthly installments. The first beneficiary may elect to receive payment over a longer period of time than the plan selected by the insured or longer than 36 months if no plan has been designated. These modes of settlement pply only to insurance maturing on or after August 1, 1946.

Disability payments-Waiver of premiums.–Upon payment of an additional premium, disability insurance may be added to the policy roviding payments of $10 per month for each $1,000 of insurance eginning with the first day of the seventh month of total disability after period of 6 consecutive months of total disability). Inappliable to insureds above age 65 or to insurance issued to the service-connected disabled veterans after April 25, 1951 (except those veterans cho met the standards of good health established by the Administrator und were issued the provision during the one year period after May 1, 965). Payments continue so long as total disability exists and do not decrease death benefits of policy. Waiver of premiums is authorized ander all NSLI policies upon proper showing of total disability prior o age 65.

UNITED STATES GOVERNMENT LIFE INSURANCE (WORLD WAR I)

Applies to insurance issued to persons who served in the Armed Forces of the United States on or after April 6, 1917, and prior to October 8, 1940. Insurance was issued upon application, in multiples of $500 but not less than $1,000 and not more than $10,000.

Types of insurance.-Any one of the following types may have been issued :

1. 5-year level premium term.
2. Ordinary life.
3. 20-payment life.
4. 30-payment life.
5. 20-year endowment.
6. 30-year endowment.
7. Endowment at age

62.
8. Endowment at age 96.
Beneficiaries.—Limited only by the choice of the insured.
Modes of settlement.-

1. Lump sum.

2. Equal monthly installments of from 3 years (36 months) to 20 years (240 months) in multiples of 12.

3. Monthly life income with 210 months (or 20 years) certain.

4. Monthly life income with 120 months (or 10 years) certain. Disability paymentsWaiver of premiums.- At no additional cost during a period of total and permanent disability (as defined) of insured, a payment of $5.75 per thousand per month issued to the insured during such period of disability. These payments reduce the face amount of the insurance. At the same time all premiums will be waived. In addition to the total permanent disability provided as an integral part of United States Government life-insurance policies, a disability income provision may be added to the policies for an additional premium to provide income to the insured who becomes totally disabled (not total permanent) at the rate of $5.75 per thousand per month. These payments do not reduce the face amount of the insurance and are in addition to the payment for total permanent disability.

SERVICEMEN'S GROUP LIFE INSURANCE PROGRAM

Between September 29, 1965 and June 24, 1970, both dates inclusive. this program provided up to $10,000 group life insurance for members of the uniformed services on active duty for 31 days or more. Effective June 25, 1970, the maximum amount of insurance was increased to $15,000, and coverage was extended to all reservists and members of the National Guard while on active duty, active duty for training or inactive duty for training for any period of time, and to ROTC members, cadets, and midshipmen while on field training or practice cruises. Effective June 20, 1972, coverage was extended to cadets and midshipmen at the service academies. Effective May 24, 1974, the maximum amount of insurance was increased to $20,000 and fulltime coverage was extended to certain members of the Ready Reserve: and to persons assigned to, or eligible for assignment to, the Retired Reserves who have completed 20 years of service, have not attained age 61, and have not received the first increment of retired pay. The uniformed services are the Army, Navy, Air Force, Marine Corps, Coast Guard, and the Commissioned Corps of the Public Health Service and the National Oceanic and Atmospheric Administration (formerly the Environmental Science Services Administration). The coverage is automatic for $20,000 unless the member elects in writing not to be insured or to be insured for $5,000, $10,000, or $15,000. Members who elect a reduced amount of insurance or elect not to be insured can later increase their insurance or elect to be insured if they can prove good health.

Full-time coverage is provided for members on active duty or active duty for training for 31 days or more. This insurance continues for 120 days after separation from service or from Ready Reserve assignment, without any premium payment after discharge. Those totally disabled at discharge have free coverage up to the end of their total disability or 1 year, whichever is the earlier. Subject to payment of premiums, this group insurance is automatically converted to a five year limited term policy (Veterans' Group Life Insurance), which is effective the day after SGLI coverage terminates. Members of the Ready Reserve and Retired Reserve are not eligible for this coverage. However, they may convert to an individual policy with any participating commercial insurance company without proof of good health and at regular premium rates. This converted insurance is also effective at the termination of SGLI coverage.

Other reservists' coverage is provided for members on active duty or active duty for training for less than 31 days and while on inactive duty training, including travel time to and from such duties. This coverage terminates at the end of the duty date or period, unless during such period the member is rendered uninsurable in which case the insurance continues in force for 120 days. Only those so disabled can convert the group insurance to an individual policy which is effective at the end of the 120-day period.

Servicemen's group life insurance is provided under group policy G-32000 purchased by the Administrator of Veterans Affairs from the Prudential Life Insurance Co. of America. That company established the Office of Servicemen's Group Life Insurance (OSGLI) at 212 Washington Street, Newark, N.J. 07102, to administer the program. All claims are paid by that office. However, in cases where there is some question as to the existence of coverage, the Veterans' Administration makes the final decision. Nearly 600 companies participate in the program as reinsurers or converters or as converters only, under criteria established by the Administrator of Veterans Affairs.

Premiums for servicepersons and reserve members are collected by the appropriate uniformed service, by deduction from pay or otherwise, and remitted by each uniformed service to the Veterans Administration, which in turn remits them to the primary insurer. Premiums for members of the Retired Reserve are payable by such members directly to OSGLI. The individual serviceperson's premium, subject to change in accordance with the actual experience, was initially set at 20 cents per month per $1,000 of insurance. The premium was later reduced and is 17 cents per month per $1,000 under the latest contract. Since reservist coverage is effective only for limited specified duty dates and hours of training, the premium for this coverage is much

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