Part I Chapter 14 - RH Insurance

Part I Chapter 14 – Service-Disabled Veterans’ Insurance (RH)

Publication Date: March 14, 2025

14.01 GENERAL (38 U.S.C. 1922)

1. As noted in M29-1, Part I, Chapter 1, Section 1.01, Service Disabled Veterans’ Insurance (RH) or (S-DVI) was available to Veterans released from active duty on or after April 25, 1951 under other than dishonorable conditions. These Veterans were required to have a service-connected disability or disabilities for which compensation was payable at 0 percent or more in degree. Effective December 31, 2022, S-DVI policies are no longer issued due to the establishment of the VALife Insurance Program under 38 U.S.C 1922B. Any applications received after December 31, 2022, should be denied by Live Claims, and information provided about VALife.

1. S-DVI insurance was granted in multiples of $500 and not less than $1,000; however, it was not permissible for a person to carry Government Life Insurance (either NSLI, USGLI, or both) in excess of $10,000 at any one time. The amount of paid-up additions purchased from dividends, Supplemental S-DVI (SRH), Veterans’ Mortgage Life Insurance (VMLI), Servicemembers’ Group Life Insurance (SGLI) and Veterans' Group Life Insurance (VGLI) was not considered in the $10,000 maximum.

1. Policyholders insured under S-DVI’s Reduced Modified Life Plan are given the opportunity to apply for an additional Special Ordinary Life Policy (SPOL) to replace their reduced coverage. The S-DVI policy contract guarantees the insured the ability to get SPOL when their face amount of coverage reduces. Adding a SPOL plan does not constitute an issuance of a new S-DVI policy under 38 U.S.C. 1922B and is still allowed after December 31, 2022.

1. Even though the S-DVI Program is closed to new insureds, existing S-DVI insureds may still request waiver of premiums by submitting a VA Form 29-357, Claim for Disability Insurance Benefits, signed by a licensed practitioner of the healing arts acting within the scope of their practice. Additional information regarding the requirements for waiver of premiums can be found in M29-1, Part III.

2. S-DVI insurance was issued under the same terms and conditions as contained in the standard policies of NSLI, except as followed:

1. The premium rates and all cash, loan, paid-up, and extended insurance values are based on the Commissioners 1941 Standard Ordinary Tables of Mortality with interest at the rate of 2.25 percent annually.

2. All settlements on policies involving annuities are calculated on the basis of the Annuity Table for 1949 with interest at the rate of 2.25 percent annually.

3. Insurance granted under S-DVI are issued on a non-participating basis and all premiums and other collections are credited directly to a separate fund in the Treasury of the United States, known as the Service-Disabled Veterans' Insurance Fund (RH Fund).

4. As noted under 38 U.S.C. 1915, the total disability income provision (TDIP) is not available under S-DVI.

1. Endowment plans were not issued to an applicant who was totally disabled as of the date of application for S-DVI.

1. If, within 30 days of the original effective date, it was found that S-DVI was issued on an endowment plan through administrative error, or otherwise, not involving fraud on the part of the insured, while the insured was totally disabled, Live Claims would contact the insured and inform them of the error and the new plan of insurance that was being issued based on the insured’s age.

NOTE: Generally, a 20-Payment Life plan would be issued; however, if the premium payment period would exceed the age of maturity, the insured was issued an Ordinary Life plan.  

1. If an insured was approved for an endowment plan and was not totally disabled at time of issue, but later becomes totally disabled and eligible for waiver of premiums, the insured would be allowed to maintain the endowment plan. 

References:

• • 38 U.S.C. 1912: Total Disability Waiver

  • 38 U.S.C. 1915: Total Disability Income Provision

  • 38 U.S.C. 1922: Legacy Service-Disabled Veterans’ Insurance

  • 38 U.S.C. 1922B: Service-Disabled Veterans Insurance

  • M29-1, Part I, Chapter 1, Section 1.01: Government Life Insurance

  • M29-1, Part III: Claim for Disability Insurance Benefits (Waiver) Procedures

Forms

• • VA Form 29-357: Claim For Disability Insurance Benefits

User Guides

• Waiver Application Process Guide

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14.02 SUPPLEMENTAL SERVICE-DISABLED VETERANS’ INSURANCE (38 U.S.C. 1922A)

1. Prior to January 1, 2023, S-DVI insureds approved for a waiver of premium under 38 U.S.C. 1912 were eligible to apply for up to $30,000 in additional insurance coverage under a separate policy. This policy, Supplemental S-DVI (S-SDVI), was issued under 38 U.S.C. 1922A.

1. Supplemental S-DVI was issued in increments of $500, but not less $1,000, and not to exceed $30,000. S-SDVI was granted upon the same terms and conditions as insurance granted under S-DVI.

1. Applications for Supplemental S-DVI were sent to S-DVI insureds who were approved for waiver, as long as the insured was under age 65. The insured was required to apply for the insurance  within one year from the date of notification letter granting waiver of premiums (or by age 65 if prior to one year from approval of waiver of premiums) and prior to December 31, 2022.

1. Waiver of premiums are not granted for S-SDVI policies.

References:

• • 38 U.S.C. 1922A: Legacy Supplemental Service Disabled Veterans’ Insurance for Totally Disabled Veterans
  • 38 U.S.C. 1912: Total Disability Waiver

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