38 CFR 8.14 - Provision for extended term insurance - other than 5-year level premium term or limited convertible 5-year level premium term policies.

prev | next
§ 8.14 Provision for extended term insurance - other than 5-year level premium term or limited convertible 5-year level premium term policies.

(a) After the expiration of the first policy year and upon default in the payment of a premium within the grace period, if a permanent plan National Service Life Insurance policy other than the modified life plan has not been surrendered for cash or for paid-up insurance, the policy shall be extended automatically as term insurance. The extended term insurance shall be for an amount of the insurance equal to the face value of the policy less any indebtedness for such time from the due date of the premium in default as the cash value less any indebtedness and a charge for administrative cost for insurance issued under 38 U.S.C. 1925, will purchase when applied as a net single premium at the attained age of the insured. For this purpose the attained age is the age on the birthday anniversary nearest to the effective date of the policy plus the number of years and months from that date to the date the extended term insurance becomes effective. The extended term insurance shall not have a loan value, but shall have a cash value.

(b) Upon default in payment of a premium within the grace period on any permanent plan of National Service Life Insurance other than the modified life plan and any plan of insurance issued under 38 U.S.C. 1925, if the policy has been in force by payment or waiver of premiums for not less than 3 months nor more than 11 months, the policy shall be extended automatically as term insurance. The extended term insurance shall be for an amount of insurance equal to the face value of the policy less any indebtedness for such time from the due date of the premium in default as the reserve of the policy less any indebtedness will purchase when applied as a net single premium at the attained age of the insured. For this purpose the attained age is the age on the birthday anniversary nearest to the effective date of the policy plus the number of months from that date to the date extended term insurance becomes effective. Extended term insurance under this provision shall not have a cash or loan value. This paragraph shall be effective from and after August 2, 1948.

(c) Upon default in payment of a premium within the grace period, if a modified life plan of National Service Life Insurance has not been surrendered for cash or paid-up insurance and if the policy has been in force by payment or waiver of premiums for not less than 3 months, or for not less than 1 year for insurance issued under 38 U.S.C. 1925, the policy shall be extended automatically as of insurance equal to (1) the Initial Face Amount of Insurance (face amount of policy in force prior to insured's 65th birthday) less any indebtedness, for lapses which occur prior to the insured's 65th birthday, or (2) the Ultimate Face Amount of Insurance (face amount of policy in force on or after insured's 65th birthday) less any indebtedness, for lapses which occur on or after the insured's 65th birthday. The extended term insurance shall be for an amount of insurance equal to:

(i) The initial face amount of insurance (face amount of policy in force prior to the insured's 65th or 70th birthday, depending on the plan of insurance), less any indebtedness, for lapses which occur prior to the insured's 65th or 70th birthday, depending on the plan of insurance, or

(ii) The ultimate face amount of insurance (face amount of policy in force on or after insured's 65th or 70th birthday, depending on the plan of insurance) less any indebtedness, for lapses which occur on or after the insured's 65th or 70th birthday, depending on the plan of insurance. If a modified life plan policy is on extended term insurance at the end of the day preceding the insured's 65th or 70th birthday, depending on the plan of insurance, the amount of extended term insurance in effect under such policy shall be automatically reduced by one-half thereof. If the policy lapsed prior to the end of the first policy year, the extended term insurance shall not have a cash or loan value. If the policy lapsed after the first policy year, the extended term insurance shall not have a loan value, but shall have a cash value.

(Authority: 38 U.S.C. 1906)
[ 30 FR 3647, Mar. 19, 1965, as amended at 47 FR 11658, Mar. 18, 1982. Redesignated at 61 FR 29290, June 10, 1996. Redesignated at 65 FR 7437, Feb. 15, 2000]

This is a list of United States Code sections, Statutes at Large, Public Laws, and Presidential Documents, which provide rulemaking authority for this CFR Part.

This list is taken from the Parallel Table of Authorities and Rules provided by GPO [Government Printing Office].

It is not guaranteed to be accurate or up-to-date, though we do refresh the database weekly. More limitations on accuracy are described at the GPO site.


United States Code
U.S. Code: Title 38 - VETERANS’ BENEFITS

§ 107 note - Certain service deemed not to be active service

§ 210

§ 701 - Placement of employees in military installations

§ 724

§ 725 - Annual performance plan for political appointees

§ 781

§ 788

§ 797

§ 808

§ 1901 - Definitions

§ 1902 - Premium rates and policy values

§ 1903 - Amount of insurance

§ 1904 - Plans of insurance

§ 1905 - Renewal

§ 1906 - Policy provisions

§ 1907 - Payment or use of dividends

§ 1908 - Premium payments

§ 1909 - Effective date of insurance

§ 1910 - Incontestability

§ 1911 - Forfeiture

§ 1912 - Total disability waiver

§ 1913 - Death before six months’ total disability

§ 1914 - Statutory total disabilities

§ 1915 - Total disability income provision

§ 1916 - Insurance which matured before August 1, 1946

§ 1917 - Insurance maturing on or after August 1, 1946

§ 1918 - Assignments

§ 1919 - National Service Life Insurance appropriation

§ 1920 - National Service Life Insurance Fund

§ 1921 - Extra hazard costs

§ 1922 - Service disabled veterans’ insurance

§ 1922A - Supplemental service disabled veterans’ insurance for totally disabled veterans

§ 1923 - Veterans’ Special Life Insurance

§ 1924 - In-service waiver of premiums

§ 1925 - Limited period for acquiring insurance

§ 1926 - Authority for higher interest rates for amounts payable to beneficiaries

§ 1927 - Authority for higher monthly installments payable to certain annuitants

§ 1928 - Authority for payment of interest on settlements

§ 1929 - Authority to adjust premium discount rates

§ 3101 - Definitions