18 September 2010

U.S. Dep't of Veterans Affairs reviewed Servicemembers' Group Life Insurance & Veterans' Group Life Insurance programs

The Department of Veterans Affairs, or VA, has reviewed the account administered by Prudential that includes Servicemembers' Group Life Insurance (SGLI) and Veterans' Group Life Insurance (VGLI) programs to ensure beneficiaries are protected, being treated fairly, and accorded the utmost care and respect. VA wants to ensure that benefits are delivered in a transparent way that clearly outlines all available options.

Since 1965, VA has delivered life insurance benefits to survivors of our Nation’s Servicemembers and Veterans.

“The most important thing we can do is ensure that beneficiaries have options that are clear, competitive, and come at no personal cost during a time of emotional stress,” said Veterans Affairs Chief of Staff John R. Gingrich. “Providing clear and concise options for the beneficiary is a top priority.”

The department, in a press release, stated that it will provide better clarity of payment options by using new documents that ask the beneficiary to choose one payment option, including a lump sum check, or a lump sum Alliance Account (retained asset account) that allows beneficiaries the option to immediately write a check for the entire payment or any lesser amount. VA will also continue to offer the option for payment in 36 monthly installments.

VA worked with beneficiaries, regulators, and subject matter experts to determine appropriate improvements to provide beneficiaries all benefits due under current life insurance programs to include Alliance Accounts in a secure and timely manner.

“Prudential has agreed to implement these adjustments, and the department will continue to carefully monitor this program to ensure that Servicemembers’ and Veterans’ beneficiaries are well-protected,” said Gingrich.

Information on the SGLI/VGLI programs is available on the VA's website located here.

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