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.