Question:

I am expecting a VA TDIU rating of 100% soon. I am told that a benefit of this rating is a $10,000 life insurance policy with no premium. Can you tell me if this true?

Answer:

A15. Based on what you wrote you should be eligible for Service-Disabled Veterans Insurance (S-DVI)

The S-DVI program was established in 1951 to meet the insurance needs of certain veterans with service connected disabilities. S-DVI is available in a variety of permanent plans as well as term insurance. Policies are issued for a maximum face amount of $10,000.

You can apply for S-DVI if you meet the following 4 criteria:

  1. You were released from active duty under other than dishonorable conditions on or after April 25, 1951
  2. You were rated for a service-connected disability (even if only 0%)
  3. You are in good health except for any service-connected conditions
  4. You apply within 2 years from the date VA grants your new service-connected disability.

Note: An increase in an existing service-connected disability or the granting of individual unemployability of a previous rated condition does not entitle a veteran to this insurance.

You can apply for basic S-DVI online using the VA autoform option (https://insurance.va.gov/Autoform/index.asp).

You can also download VA form 29-4364, Application for Service-Disabled Veterans Life Insurance, from our forms page. Be sure to also download VA Pamphlet 29-9 from this site for premiums rates and a description of the plans available.

Under certain conditions, the basic S-DVI policy provides for a waiver of premiums in case of total disability. Policyholders who carry the basic S-DVI coverage and who become eligible for a waiver of premiums due to total disability can apply for and be granted additional Supplemental S-DVI of up to $30,000.

The Veterans’ Benefits Act of 2010, provided for $30,000 of supplemental coverage to S-DVI policyholders. Premiums may not be waived on this supplemental coverage. S-DVI policyholders are eligible for this supplemental coverage if:

  • They are eligible for a waiver of premiums.
  • They apply for the coverage within one year from notice of the grant of waiver.
  • are under age 65

To apply for Supplemental S-DVI, you must file VA Form 29-0188, Application for Supplemental Service-Disabled Veterans (RH) Life Insurance or send a letter requesting this insurance over your signature. You must apply for the coverage within one year from notice of the grant of waiver of premiums.

If you are awarded TDIU you should also qualify for a waiver of insurance premiums.

Filing a Claim for Disability Insurance Benefits

There are two types of disability insurance benefits awarded under VA life insurance policies. These are:

  1. waiver of premiums due to total disability and
  2. Total Disability Income Provision (TDIP) payments.

Waiver of Premiums

Most VA Insurance policies contain a waiver a premiums provision in the event that the insured becomes totally disabled. Generally, to qualify for a waiver of premiums, the insured must:

  1. The insured must have a mental or physical disability which prevents him or her from performing substantially gainful employment.
  2. The total disability must begin before the insured’s 65th birthday, and must continue for at least six consecutive months.
  3. The total disability may not begin prior to the effective date of the policy. (Exception: waiver may be granted if total disability commenced prior to the effective date only on S-DVI policies, provided it is due to a service-connected disability.)

There are certain exceptions to the above conditions. However, if you believe that you are eligible for a waiver of premiums, you should apply as soon as possible. VA will determine your eligibility and notify you of the decision. Use VA Form 29-357, Claim for Disability Insurance Benefits which can be downloaded from this site. In most cases, premiums can only be waived up to one year prior to receipt of a claim.

Total Disability Income Provision (TDIP) Rider

A TDIP rider provides for monthly payments to be paid to an insured starting on the first day of the seventh month of his or her continued total disability. Payments continue as long as the total disability continues. This provision is available on all NSLI policies, except S-DVI (“RH”) and VRI (“JR” and “JS”).

Policyholders must apply for TDIP before their 55th birthday and the applicant must be in good health.

Total disability income provision benefits are payable to individuals who:

  1. Have a TDIP Rider in force on the date that total disability began or one year from when the rider ceases and
  2. Have a mental or physical disability (it does not need to be service connected) which prevents him or her from performing substantially gainful employment and
  3. Total disability must begin before the insured’s 65th birthday and
  4. Must continue for at least six consecutive months

If the insured is totally disabled and qualifies for TDIP payments, he/she is also entitled to a waiver of premiums on the basic contract and the TDIP rider. To apply use VA Form 29-357, Claim for Disability Insurance Benefits which can be downloaded from this site.

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