The Service-Disabled Veterans Insurance started in 1951 to meet the insurance needs of veterans with service related disabilities. This insurance is available in many permanent plans as well as term plans. The maximum face value for such insurance is $10,000 and the applicant needs to fulfill certain criteria before being eligible for Service-Disabled Veterans Insurance (S-DVI).

• This is also a part of the United States department of veteran affairs and is a government entity. There is also a provision for the waiver of premiums clause if the veteran is totally disabled.  Those who are eligible for the waiver of premiums can also apply for supplemental S-DVI which provides additional coverage up to $20,000.
• The Veterans Benefit Act of 1992 provided supplemental coverage of up to $20,000; however premiums cannot be waived on such policy which was possible in a normal or basic S-DVI. The S-DVI policyholders are eligible if they meet these three conditions –     They are eligible for a waiver of premiums, they apply for the coverage within one year from notice of the grant of waiver and if they are under age 65.
• Application for such types of insurance is provided on the website of United States Department of Veteran Affairs. The form can either be downloaded or can be filled out on the internet itself. There are different forms for a normal S-DVI and for supplementary S-DVI which can be viewed, downloaded, or filled out by visiting the site — insurance.va.gov/inForceGliSite/buying/SDVI.htm.
• There are four basic criteria for being eligible for any type of S-DVI; the applicant should fulfill the following conditions – you (applicant) were released from active duty under other than dishonorable conditions on or after April 25, 1951, you were rated for a service-connected disability (even if only 0%), you are in good health except for any service-connected conditions, you apply within 2 years from the date VA grants your new service-connected disability.
• An important point to note in this type of insurance is that if the existing illness or disability worsened then the applicant is not eligible for such type of insurance. This means that a person who suffered a disability and applied for it when it increased then such applications will not be considered and rejected.
• Another important point to note is that there are certain criteria to be met in order to qualify for a waiver of premiums. The insured must have a psychological or physical disability which stops him or her from performing considerably productive employment. The total disability should begin prior to the insured’s 65th birthday, and must go on for no less than six successive months. The total disability may not begin prior to the effective date of the policy. (Exception: waiver might be approved if total disability commenced prior to the effective date only on S-DVI policies, provided it is because of a service-connected disability.)
• The Total Disability Income Provision (TDIP) rider can also be opted for which provides regular pay outs commencing from the first day of the seventh month of his or her continued total disability. Policyholders must apply for TDIP before their 55th birthday and must be in good health to qualify.
• The TDIP benefits are payable to individuals who – have a TDIP rider in force on the date that the disability began or one year from when the rider ceases. The individual must have a mental or physical disability (need not be service related) which prevents the person from getting gainful employment. The total disability must commence before the 65th birthday and continue for at least six consecutive months.

If you have any additional points related to this topic, feel free to leave a comment.