United States Government Life Insurance: A Legacy of Support and Protection
United States Government Life Insurance (USGLI) was a specialized type of life insurance initiated by the U.S. government between 1919 and 1951. Initially devised to assist veterans from World War I, the USGLI was a significant part of the War Risk Insurance program aimed at providing affordable life insurance to military personnel.
Key Benefits and Features
- USGLI was a U.S. government program dedicated to the healthcare needs of American soldiers.
- It was established in 1919 following the U.S.’s involvement in World War I.
- The successor program, Service Member Group Life Insurance, continues to provide life insurance for military personnel.
How USGLI Operated
USGLI aimed to support solders who faced difficulty in obtaining affordable life insurance from private insurers. Due to the elevated risk of injury or death for soldiers, private insurance premiums would often be prohibitively expensive.
To address this, the U.S. government’s War Risk Insurance program, including USGLI, subsidized life insurance costs for military personnel. Premiums collected under this scheme were managed by the United States Treasury, ensuring coverage for claims made by the policyholders.
All active military personnel were entitled to USGLI, promising a life insurance payout from the federal government in cases of death or disability due to war, with a maximum policy amount of $10,000. The program concluded on April 25, 1951, having issued over four million policies during its tenure.
Real World Impact
Introduced in 1919, in response to World War I, the USGLI program’s enduring legacy is evident. As of 2013, around 8,000 active policies remained, with the average policyholder aged 88. Since January 1, 1983, all USGLI policies have been paid-up with no further premiums required.
The modern equivalent of USGLI, Service Member Group Life Insurance, ensures current U.S. military personnel receive life insurance throughout their service, with premiums deducted from their pay. The insurance term extends beyond service for an additional 120 days, safeguarding against uncertainties during transition periods.
Related Terms: Service Member Group Life Insurance, premiums, U.S. Treasury, veterans benefits.
References
- U.S. Department of Veterans Affairs. “United States Government Life Insurance”.
- U.S. Department of Veterans Affairs. “Servicemembers’ Group Life Insurance (SGLI)”.
Get ready to put your knowledge to the test with this intriguing quiz!
---
primaryColor: 'rgb(121, 82, 179)'
secondaryColor: '#DDDDDD'
textColor: black
shuffle_questions: true
---
## What is the primary purpose of United States Government Life Insurance (USGLI)?
- [x] To provide life insurance to military personnel
- [ ] To offer health insurance to government employees
- [ ] To cover mortgage insurances for federal workers
- [ ] To provide insurance for government facilities
## When was United States Government Life Insurance (USGLI) originally established?
- [ ] During World War II
- [x] During World War I
- [ ] During the Vietnam War
- [ ] During the Korean War
## Who was initially eligible for United States Government Life Insurance (USGLI)?
- [ ] All federal employees
- [ ] The general public
- [x] Active duty military personnel
- [ ] Retired government officials
## Which agency administers United States Government Life Insurance (USGLI)?
- [ ] The U.S. Treasury Department
- [x] The U.S. Department of Veterans Affairs
- [ ] The Department of Defense
- [ ] The Social Security Administration
## What major change occurred to USGLI coverage after World War I?
- [ ] It was extended to all citizens
- [ ] It was expanded to include disability insurance
- [x] It was continued due to service members' peacetime need
- [ ] It was terminated immediately
## How did World War I influence the establishment of USGLI?
- [x] The need to provide life insurance for drafted soldiers and sailors
- [ ] The increase in government employees requiring insurance
- [ ] Financial market booms encouraging the creation of life insurance
- [ ] The necessity to insure military equipment
## Besides life insurance, what other aspect is covered under USGLI?
- [ ] Travel insurance for military personnel
- [x] There are no additional covers; USGLI is purely life insurance
- [ ] Medical expenses of veterans
- [ ] Education loans for veterans' families
## Is United States Government Life Insurance (USGLI) still open to new applicants today?
- [ ] Yes, but only to new military personnel
- [ ] Yes, for all government employees
- [ ] No, it has been replaced by new insurance programs
- [x] No, but it still covers previous policyholders
## Which of the following best describes the change in USGLI policies over the years?
- [x] New policies ceased being issued, but existing policies were maintained
- [ ] Coverage was expanded to non-military personnel
- [ ] Policies were made convertible to commercial insurance
- [ ] Policies increasingly covered additional risks apart from life insurance
## What is a key benefit of maintaining an existing USGLI policy today?
- [x] Continuation of a government-assured insurance benefit
- [ ] Eligibility for new plan upgrades
- [ ] Ability to get higher liability cover
- [ ] Option for early cash out due to surrender value
