“Review of VA’s Life Insurance Programs.”
Chairman
In general, process reform is something all insurance programs could use. The VFW has learned of times when an estate or trust could not receive the payout even if the deceased had established an estate or trust. Programs that pay out at the time of death for the service member or the veteran should be able to pay to a trust or estate, depending on what the veteran or service member has established. Also of concern is ensuring that payments to beneficiaries are made in a way that the beneficiary can access as quickly as possible, thus avoiding delays in times when the money may be badly needed.
The need to locate a person who is listed as a beneficiary can be difficult if the contact information for the person is not up to date and could be the reason for delayed payment, but this could be corrected with better outreach. While efforts to inform the eligible veterans may never result in 100 percent enrollment in a program,
VGLI is known to serve those veterans who have left the military and transitioned from
The rates for this program must be more competitive with the private sector as VGLI premiums increase dramatically when the veteran ages. A
The VFW is concerned with the amount of time a veteran has to join this program. Currently, a veteran has 1 year and 120 days from their date of discharge to enroll in VGLI and can avoid answering health questions if enrolled within 240 days of discharge. The VFW is concerned that many veterans may not consider the implications of losing SGLI when leaving service and their focus on transition may not include getting VGLI coverage. Additionally, the VFW has learned from veterans who sought coverage through our insurance program that a diagnosis of PTSD makes it difficult for veterans to get coverage from other life insurance companies, and they may have to pay higher premiums for smaller policies if they can get coverage. Knowing that a veteran with a service-connected disability rating from
The program that provides life insurance to members of the military pays out the policy to those surviving spouses and families at the time of death of the service member. Oversight of this program is a key concern for the VFW. In 2015, the VFW was party to a successful motion against
The lawsuit concerned the method that Prudential used to make lump sum payments, which was to place them in an investment account known as an "Alliance Account." For those who received payments through Alliance Accounts, this was an alleged breach of contract and violation of federal law concerning the approved method of paying the lump sum option. While the lawsuit has been settled, the VFW is concerned that the Alliance Account option continues to be offered and promoted on materials that beneficiaries receive. The United States Code prescribes the manner in which payments may be made. A lump sum payment and 36 equal payments are the only two options, not an option which results in an investment. The interest earned on this investment benefits Prudential as a company, and the VFW objects to companies profiting off the surviving families who have recently had a loved one make the ultimate sacrifice for their country.
Ensuring that our military service members have access to affordable life insurance remains a top priority for the
SGLI Traumatic Injury Protection Program (TSGLI)
TSGLI provides automatic traumatic injury coverage to all service members covered under the SGLI program. The VFW urges a review of the TSGLI payout for loss of fingers. Currently, the loss of four fingers or the thumb is the requirement for payment. The VFW sees that the loss of digits not only has an impact on dexterity and complexity of tasks the person is able to perform, but also the psychological and cosmetic impact. The VFW recommends payment be allowed under TSGLI on a "per digit" basis -- a higher amount for the loss of four digits total not including the thumb -- and a payout for the loss of the thumb.
This program, which allows a service-connected disabled veteran to have life insurance, is a cornerstone of the earned benefits package provided by
Currently, veterans who receive a disability rating, even a zero percent rating, are able to join this program. Each time new conditions are added to the rating, they have a new opportunity to join. However, the increase of a rating for an existing diagnosis does not trigger the same opportunity. The VFW calls on
Additional concerns include the amount of money provided by S-DVI.
In conclusion, the
Read this original document at: http://docs.house.gov/meetings/VR/VR09/20180425/108208/HHRG-115-VR09-Wstate-WisemanM-20180425.pdf
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