United States Government Life Insurance USGLI Meaning Example
United States Government Life Insurance (USGLI): Meaning, Example
Anthony Battle is a CERTIFIED FINANCIAL PLANNER™ professional. He earned the Chartered Financial Consultant® designation for advanced financial planning, the Chartered Life Underwriter® designation for advanced insurance specialization, the Accredited Financial Counselor® for Financial Counseling, and both the Retirement Income Certified Professional® and Certified Retirement Counselor designations for advanced retirement planning.
What Is United States Government Life Insurance (USGLI)?
United States Government Life Insurance (USGLI) is a type of life insurance offered by the United States government from 1919 to 1951. It was initially intended to support veterans of World War I and was part of the War Risk Insurance program.
Key Takeaways
– USGLI was a U.S. government program to support the healthcare needs of American soldiers.
– It was created in 1919 in response to the country’s entry into World War I.
– The successor to USGLI is known as the Service Member Group Life Insurance program.
How United States Government Life Insurance (USGLI) Works
USGLI aimed to provide affordable life insurance to American soldiers who may not have been able to obtain it from private insurers. Private insurance premiums for soldiers would be high due to the increased risk of injury or death in their occupation.
To support soldiers, the United States government subsidized life insurance through the War Risk Insurance program. USGLI was a significant part of this program, and the premiums paid were deposited into the United States Treasury to cover policyholders’ claims.
Under the USGLI program, active military personnel were entitled to a life insurance policy paid by the federal government in the case of war-related death or disability. The maximum face amount of a USGLI policy was $10,000. The program closed on April 25, 1951, and during World War I, more than four million policies were issued.
Real World Example of United States Government Life Insurance (USGLI)
USGLI was introduced in 1919 in response to the United States entering World War I. As of 2013, there were approximately 8,000 active policies remaining, with an average policyholder age of 88. Since Jan. 1, 1983, all USGLI policies have been paid-up with no further premiums required.
The modern successor to the USGLI program is Service Member Group Life Insurance. Through this program, United States military personnel receive insurance coverage for the duration of their service, with premiums deducted from their regular pay. The insurance term varies based on their length of service, with additional coverage granted for 120 days following their departure from service.
