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United
States Government Life Insurance
(World War I Program)
In 1917,
America entered the war against Germany. Shortly thereafter, Congress
approved issuance of Government life insurance to servicemembers
under
what was known as the War Risk Insurance program. Congress took this
action because commercial life insurance companies either excluded
protection against the hazards of war or charged premiums that
were
much higher than normal rates. During World War I, over 4 million
policies were issued. In 1919, Congress established the United
States
Government Life Insurance (USGLI) program to manage World War I policies
and new policies issued thereafter. The program was closed to all
new issues on April 25, 1951. USGLI policies could be retained
by
the insured even after his or her military service ended. Today there
are just under 8,000 policies still in force and the
average age of
policyholders is 88 years. Policies were issued in a variety of permanent
plans and as renewable term insurance. The maximum face amount
of
a USGLI policy is $10,000. All USGLI policies were declared paid-up
as of January 1, 1983 meaning that no further premium payments
were
due. Annual dividends continue to be paid on these policies.
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