VA Insurance to Cover Disaster Deaths
From: "\"Doc\" Melson" <docmelson@docmelson.com>Friday
June 8, 2:00 pm Eastern
Time
SOURCE:
U.S. Department of Veterans Affairs
WASHINGTON, June 8 /PRNewswire/ -- A rollback in certain life insurance rules
means dozens of families who have recently lost military service members will
receive extra financial assistance.
``Under
legislation signed June 5 by President Bush, the government can cover the
untimely deaths of the brave men and women serving on the USS Cole and victims
of other recent tragedies at higher amounts of life insurance,'' Secretary of
Veterans Affairs Anthony J. Principi said.
The
new law, the Veterans' Survival Benefits Improvement Act, applies to deaths in
direct military ``performance of duty.'' It is intended by Congress and the
administration to cover the Oct. 12 terrorist bombing of the USS Cole in Yemen
that killed 17 sailors, the accidental bomb dropping by a Navy Hornet in a
U.S.-Kuwaiti air exercise March 12 resulting in five deaths, and a Georgia
plane crash on March 3 that killed 21 National Guardsmen.
Under
an earlier increase effective April 1, top life insurance coverage under the
Servicemembers' Group Life Insurance (SGLI) program was raised from $200,000
to $250,000. The latest law rolls back to October 1, 2000 the effective date
of that increase for certain deaths.
The
Department of Veterans Affairs (VA) estimated as many as 75 deaths may be
covered by the change, which applies to all deaths of SGLI-insured service
members in combat or military accidents in the performance of duty from Oct.
1, 2000 to March 31, 2001 where the service member had chosen the maximum
amount of SGLI coverage of $200,000.
Checks
for $50,000 are being sent immediately to survivors in about 50 cases that
were developed as the legislation advanced. Within the next few weeks, as the
Defense Department provides certification of additional job- performance
deaths, the government will send checks along with letters of explanation to
the families of those service members.
The
new rules for that time period do not apply to deaths due to disease or
off-duty accidents, although these deaths are covered at regular levels of
SGLI insurance. Similarly, the latest amendment does not affect veterans who
have insurance under federal or private policies in their civilian lives.
When
a uniformed military member dies today, the maximum coverage will be effective
unless the service member has opted for coverage in a lower amount. SGLI
coverage currently is available in $10,000 increments up to $250,000 at a cost
of 8 cents a month per $1,000 coverage.
When
released from active duty or the Reserves, people with full-time SGLI coverage
can convert it to another VA-supervised program, Veterans Group Life
Insurance, or to a commercial policy with any one of 91 participating
commercial insurance companies.
SOURCE:
U.S. Department of Veterans Affairs
"When
the way comes to an end, then change - having changed, you pass through."
I. Ching
Bruce
"Doc". Melson