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Show etferesis Warned tf Insurance Cos? The Veterans Administration Ad-ministration is launching a renewed effort to advise World War II veterans of the high, and increasing cost of holding GI term life insurance instead of converting it to one of the so-called "permanent" plans. In announcing a new National Service Life Insurance In-surance information booklet, VA Administrator Richard L. Roudebush said, "I am greatly concerned that large numbers of World War II veterans have not yet heeded our warnings about the heavy premium increases they must pay unless they convert their policies." For example, Roudebush pointed out that a World War II "V" policyholder pays $12.70 a month at age 50 for a $10,000 NSLI term insurance policy. At age 60 that monthly mon-thly premium jumps to $26 a month and at age 65 it has increased in-creased to $39.70 monthly. At age 70 it would jump to a whopping $61.80 per month. A veteran who lived to age 90 would be paying $554 a month for his $10,000 term policy. Roudebush explained that GI term insurance policies were designed to be used only for a few years, affording veterans a maximum of protection at rninimum cost during the readjustment period after separation from service and while raising a family. By converting his term insurance in-surance to one of the VA's permanent plans, Roudebush pointed out, the veteran pays premiums which, while slightly higher initially, do not increase as the years go by. Roudebush cited the Modified Life-70 plan as an example. It is available to veterans having policies with numbers prefixed by the letters let-ters V, H, W, RH, J, JR OR JS. In the case of a National Service Life Insurance policyholder with a World War II "V" series policy, conversion con-version to a $10,000 Modified Life-70 plan at age 50 would result in a premium of $17.70 a month throughout the insured's in-sured's lifetime. If the same policyholder waited until his 60th birthday to convert, the monthly premium would be $26.40 At age 65 the converted premium would be $31.20 per month for the rest of his life. The face amount of the Modified Life policy is reduced by 50 per cent on the insured's 70th birthday but can be maintained at the full amount by applying for a special ordinary life policy prior to that date. An additional ad-ditional premium will be charged but no health examination is required. Roudebush pointed out that the new VA insurance booklet will be available in July at VA offices and from members of the national veterans organizations. "In the meantime, I urge veterans having questions concerning their GI term insurance in-surance to contact the nearest VA office, or 'check with a veterans organization representative," he said. |
