Legal Definitions - national-service life insurance

National-service life insurance refers to a type of life insurance policy specifically designed for and offered to members of the armed forces and veterans. These policies are typically administered or guaranteed by the government to provide financial protection to the beneficiaries of service members and veterans in the event of their death. The aim is to offer affordable coverage that acknowledges the unique risks and sacrifices associated with military service.

Here are some examples illustrating national-service life insurance:

• Example 1: Active Duty Protection

  A young Marine, currently serving overseas, enrolls in a national-service life insurance program. He designates his spouse and two young children as beneficiaries. Should he unfortunately pass away while on active duty, the policy would provide a substantial lump sum payment to his family, helping them cover immediate expenses, mortgage payments, and future educational costs for his children. This illustrates how national-service life insurance offers crucial financial security to the families of those actively serving.

• Example 2: Veteran's Continued Coverage

  After honorably completing his 20 years of service in the Air Force, a veteran decides to convert his existing national-service life insurance policy into a permanent plan. Although he is no longer on active duty, he wants to ensure his wife will be financially secure after his eventual passing. This demonstrates how national-service life insurance can offer options for veterans to maintain coverage even after leaving military service, providing long-term peace of mind.

• Example 3: Beneficiary Payout

  A Navy reservist, who had purchased national-service life insurance during her time in uniform, tragically dies in a civilian accident years after her service ended. Because she had maintained her policy, her elderly parents, whom she had named as beneficiaries, receive the policy's death benefit. This payment helps them manage their living expenses and funeral costs, highlighting how national-service life insurance provides a safety net for designated beneficiaries, regardless of the cause of death, as long as the policy is active.