United States Government Life Insurance - USGLI

AAA

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.

INVESTOPEDIA EXPLAINS '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. United States Aircraft Insurance ...

    The nation's first aviation insurance company, founded in 1928 ...
  2. Accelerative Endowment

    An option in a whole life insurance policy to use accumulated ...
  3. Life Insurance

    A protection against the loss of income that would result if ...
  4. Whole Life Insurance Policy

    A life insurance contract with level premiums that has both an ...
  5. Term Life Insurance

    A policy with a set duration limit on the coverage period. Once ...
  6. Adjustable Life Insurance

    A type of life insurance that combines features of term and whole ...
Related Articles
  1. Variable Vs. Variable Universal Life ...
    Retirement

    Variable Vs. Variable Universal Life ...

  2. How To Avoid Taxation On Life Insurance ...
    Options & Futures

    How To Avoid Taxation On Life Insurance ...

  3. Getting Started On Your Estate Plan
    Options & Futures

    Getting Started On Your Estate Plan

  4. Long-Term Care Insurance: You Have Options
    Options & Futures

    Long-Term Care Insurance: You Have Options

Hot Definitions
  1. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  2. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  3. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  4. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  5. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  6. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
Trading Center