In order to qualify for a loan or cash surrender, you must have a permanent plan issued under one of the following programs:
United States Government Life Insurance (USGLI)
- USGLI was generally issued to Veterans of World War I. This program has been closed to new applicants since 1951.
National Service Life Insurance (NSLI)
- NSLI was generally issued to Veterans of World War II. This program has been closed to new applicants since 1951.
Veterans' Special Life Insurance (VSLI)
- VSLI was generally issued to Korean War-era veterans. This program has been closed to new applicants since 1957.
Service Disabled Veterans Insurance (S-DVI)
- S-DVI is issued to qualifying Veterans who separated from service on or after April 25, 1951, with service-connected disabilities. This program is still open to new issues.
Veterans Reopened Insurance (VRI)
- VRI was generally issued to World War II and Korean veterans with service-connected or serious non-service connected disabilities. This program was open only for one year, from May 1965 to May, 1966, and is closed to new applicants.
A loan or cash surrender may be obtained in two ways:
- After a whole life or endowment plan has been in force for one year on a premium-paying basis or is paid-up.
- On paid-up additional insurance attached to either permanent plans or term plans.
Policyholders may borrow up to 94 percent of the cash value of the policy .
Loans are granted in any amount up to 94 percent of the policy's reserve value, minus any existing indebtedness against the policy, plus interest.