Veteran Affairs Proposes Rules for Allowing 
Accelerated Benefits for Terminally Ill Veterans

The Department of Veterans Affairs (VA) has issued proposed rules for the payment of accelerated benefits to terminally ill persons in the Servicemembers’ Group Life Insurance (SGLI) and Veterans’ Group Life Insurance (VGLI) programs. The proposed rules amend the VA’s regulations to establish a mechanism for implementing these statutory provisions authorized in the Veterans Programs Enhancement Act of 1998.

The rules state that a person is considered to be terminally ill and eligible for an accelerated benefit if, based on a medical prognosis, his or her life expectancy is less than 12 months. This accelerated benefit can be up to 50% of the face value of coverage (in multiples of $5,000) minus an interest reduction determined to be lost because of early payment.

Comments on the proposed rules must be received on or before September 18, 2000. View the document online at: www.access.gpo.gov/su_docs/fedreg/a000720c.html