VA to pay $117 million in life insurance dividends this year

This year, VA will pay $117.4 million in annual dividends to approximately 505,000 Veterans who served before 1956 and hold qualifying life insurance policies. The life insurance dividends come from the earnings of trust funds that Veterans have paid insurance premiums into over the years and are linked to returns on investments in U.S. government securities.

VA will pay the following dividends:

• $74 million – Anticipated total amount of dividends to be paid to qualifying Veterans of World War II holding National Service Life Insurance policies that begin with the letter “V.”
• $2.7 million – Anticipated total amount of dividends to be paid to qualifying World War II-era Veterans holding Veterans’ Reopened Insurance policies that begin with the letters “J,” “JR” or “JS.”
• $40.6 million – Anticipated total amount of dividends to be paid to qualifying Korean Conflict-era Veterans holding Veterans’ Special Life Insurance policies that begin with the letters “RS” or “W.”
• $120,000 – Anticipated total amount of dividends to be paid to Veterans who served after World War I until 1940 and hold U.S. Government Life Insurance policies that begin with the letter “K.”

No action is required on the part of the Veteran receiving dividends. VA will automatically pay the dividend on the anniversary date of the policy by sending it to the insured Veteran. The amounts will vary based on the age of the Veteran, the type of insurance, and the length of time the Veteran has had the policy in force.

Veterans eligible for the dividends must have had these VA life insurance policies in effect since they left the military and would have received annual notifications about their policies.

VA operates the nation’s 10th largest life insurance program, providing more than $1.3 trillion in coverage to nearly seven million Servicemembers and their family members and Veterans. Veterans who have questions about their policies should contact the VA insurance toll-free number at 1-800-669-8477 or email VAinsurance@va.gov.

For more information on VA life insurance, see http://www.benefits.va.gov/insurance/.

Maryann Stupka has worked for VA for 27 years and is Chief of the Insurance Actuarial Staff, which is responsible for determining the annual dividend distribution.