DEFINITION of 'United States Government Life Insurance - USGLI'

A life insurance program established in 1919 to provide term, permanent and endowment insurance up to $10,000 to veterans who served in the United States military prior to 1940. The United States Government Life Insurance program was developed to manage the existing World War I policies and any new policies thereafter. More than four million life insurance policies had been issued during WWI. The program was closed to new issues on April 25, 1951.

BREAKING DOWN 'United States Government Life Insurance - USGLI'

In 1917, as the United States entered the war against Germany, Congress approved issuing government life insurance to provide insurance benefits for veterans and service members who may be unable to purchase insurance from private companies due to the increased risks to which military service members are exposed, because of a service related disability, or because private insurance premiums would be much higher than normal rates. As of 2010, there were approximately 8,000 active policies remaining, with the policy holder's average age of 88. Since January 1, 1983, all USGLI policies have been paid-up, with no further premiums becoming due. Annual dividends are still paid on these policies.

RELATED TERMS
  1. Variable Life Insurance Policy

    A form of permanent life insurance, Variable life insurance provides ...
  2. Term Life Insurance

    A policy with a set duration limit on the coverage period. Once ...
  3. Whole Life Insurance Policy

    A life insurance contract with level premiums that has both an ...
  4. Guaranteed Issue Life Insurance ...

    A type of financial-protection policy that provides cash to a ...
  5. Decreasing Term Insurance

    A type of annual renewable term life insurance that provides ...
  6. Bureau Rate

    A standard price per unit of insurance set by a state's insurance ...
Related Articles
  1. Financial Advisor

    Buying a Life Insurance Policy? Read This First

    Knowing who needs life insurance, how it works and the different types of insurance can help consumers make informed decisions about this product.
  2. Personal Finance

    The Best Life Insurance for Military Families

    Two of the most common types of life insurance are term and whole life. Here's why the latter isn't a good idea for most military families.
  3. Financial Advisor

    Advising FAs: Explaining Life Insurance to a Client

    Life insurance was initially designed to protect the income of families, particularly young families in the wealth accumulation phase, in the event of the head of household's death.
  4. Insurance

    Term Life Insurance: Everything You Need to Know

    Term life insurance is an affordable way to financially protect your loved ones after your death. Here's what you need to know before purchasing a policy.
  5. Insurance

    3 Reasons to Avoid Term Insurance

    Find out the reasons why term life insurance may not be for everybody, and why you may want to avoid it in favor of a permanent life insurance policy.
  6. Insurance

    How Good An Investment Is Life Insurance?

    Compared to other options, does it ever make sense to include cash-value life insurance in your investment portfolio? A look at the pros and cons.
  7. Financial Advisor

    The 10 Best Life Insurance Companies for Veterans

    There are certain companies that cater to the needs of military veterans and have life insurance plans that are specifically developed for them.
  8. Insurance

    What Is the Best Age to Get Life Insurance?

    Learn about the optimal time for purchasing personal life insurance and why delaying the buying decision may have costly consequences.
RELATED FAQS
  1. Can your insurance company cancel your policy without notice?

    Learn about your rights as an insured when it comes to your insurance policy being canceled, including how to access your ... Read Answer >>
  2. What is the average return on total revenue for the insurance sector?

    Learn about the three main segments of the insurance industry, and find out what the average return on revenues is for the ... Read Answer >>
Hot Definitions
  1. Treynor Ratio

    A ratio developed by Jack Treynor that measures returns earned in excess of that which could have been earned on a riskless ...
  2. Buyback

    The repurchase of outstanding shares (repurchase) by a company in order to reduce the number of shares on the market. Companies ...
  3. Tax Refund

    A tax refund is a refund on taxes paid to an individual or household when the actual tax liability is less than the amount ...
  4. Gross Domestic Product - GDP

    The monetary value of all the finished goods and services produced within a country's borders in a specific time period, ...
  5. Inflation

    The rate at which the general level of prices for goods and services is rising and, consequently, the purchasing power of ...
  6. Merchandising

    Merchandising is any act of promoting goods or services for retail sale, including marketing strategies, display design and ...
Trading Center