Life Insurance

[Cavman]

I applied for the $10000 life insurance policy and was surprised it was granted. Someone here told me to apply because he said..you never know. The letter stated how much the fee was per month, quarter etc. It also stated to pay it and a review is underway to see if the fee will be dropped due to a disability. Is this usually the way its done and being 100% will the fee be waived?

Cavman

[Chuck75]

It may be dropped completely, or they may send you a form asking for income, etc. before they drop the premiums.

I applied for the $10000 life insurance policy and was surprised it was granted. Someone here told me to apply because he said..you never know. The letter stated how much the fee was per month, quarter etc. It also stated to pay it and a review is underway to see if the fee will be dropped due to a disability. Is this usually the way its done and being 100% will the fee be waived?

Cavman

[Stretch]

Yep that is the way it is for 100%. They wave the fee. I don't know about over 10,000 dollars though.

[Cavman]

Stretch:

How long does it take for the fee to be dropped? Did you make any payments at all?

Cavman

[broncovet]

Ok..the VA Life Insurance department runs way more efficiently than C and P, probably because the life insurance division is profitable, and is run more like a private company.

What you are referring to is called "Waiver of Premiums".

Waiver of Premiums means, that if you become "fully disabled", while the policy is in force, the VA will pay your life insurance premiums for as long as you are disabled. Remember, if you met the guidelines, you had a recent VARO decision granting you disability, and that you probably are eligible for waiver of premiums.

I have found it relatively fast and easy to get this waiver of premiums, tho they wont consider this until you life insurance is IN FORCE, that is, you apply for life insurance, it is "underwritten" and they determine if you meet the guidelines. If you do, they then "issue" you a policy. If you do not meet underwriting guidelines, your life insurance is declined.

It took me only a couple weeks to get my waiver of premiums after the policy was issued..and, they waived them from day one.

The C and P could learn a lot from VA Life Insurance..if it was ran like that department, there would be very few Veteran complaints, and probably no need for appeals.

VA Life Insurance is approved (or declined) in less than 2 months, and more likely, about 2-3 weeks. Life Insurance can look at your medical records online, and render a decision in minutes, while C&P takes months or years to do the same thing with paper records. It is quick and painless..medical evidence does not get lost. If you dont put your social security number on your application, it will be "bounced back" as incomplete. Once they get your SSN, they can look at your complete medical record and easily determine if you meet the underwriting requirements or not, including, whether or not you qualify for Waiver of Premiums. Just be patient, and you will get a waiver probably within 2 or 3 weeks, and you can cancel your life insurance if VA wont pay for it.

In Ohio, insurance applicants get a "30 day free look" at their life insurance policy. That is, you can apply for life insurance, get a policy that is in force, read it and return in in 29 days and pay nothing. If you died within that 29 day "free look" period, your beneficiaries would still be paid the full amount of the life insurance except in the case of suicide. All insurance policies have a 2 year exclusion on suicide. That is, you cant run out and get a million dollar policy, then off yourself so your family has money. You have to wait until the policy is in force 2 years. If you offed yourself in the first 2 years, your family would get virtually nothing..probably a return of premiums paid.

Edited March 17, 2009 by broncovet

[jbasser]

According to VA life insurance, the waiver of premium is based on P and T status. Even if reduced your status may not change if you keep the P and T.

J

[sharon]

§ 8.17 Discontinuance of premium waiver.

(a) The Secretary may require proof of continuance of total disability at any time the Secretary may deem same necessary. In the event it is found that an insured is no longer totally disabled, the waiver of premiums shall cease as of the date of such finding, and the insurance may be continued by payment of premiums, the due date of the first premium payable being the next regular monthly due date of the premium under the policy. The insurance shall not lapse prior to the date of expiration of the grace period allowed for the payment of such premium or prior to the expiration of 31 days after date of notice to the insured of the termination of the premium waiver, whichever is the later date. Such notice shall be sent by registered mail or by certified mail and sufficient notice will be deemed to have been given when such letter has been placed in the mails by the Department of Veterans Affairs: Provided, That the Secretary may grant an additional period of not more than 31 days for payment of the premiums in any case in which it is shown that the failure to make payment within 31 days after notice as defined in this paragraph was due to circumstances beyond the insured's control; but the premiums in any such case must be paid during the lifetime of the insured. The failure of the insured to furnish a correct current address at which mail will reach him or her promptly shall not be grounds for a further extension of time for payment of premiums under this section.

( In the event a finding that insured is no longer totally disabled is made at the same time a finding is made of total disability entitling the insured to a waiver of premiums while so disabled, the waiver of premiums shall cease as of the date on which total disability ceased and continuance of the insurance in such cases shall be subject to the timely payment of the premiums as they become or have become due and payable. The due date of the first premium payable subsequent to the date total disability ceased is the next regular due date of the premium under the policy, and if such premium was not paid within 31 days after the due date, the insurance lapsed.

© If the insured shall fail to cooperate with the Secretary in securing any evidence he may require to determine whether total disability has continued, the premium waiver shall cease effective as of the date finding is made of such failure to cooperate, and the insurance may be continued by payment of the premiums within 31 days after notice of termination as provided in paragraph (a) of this section.