Life Insurance Dividend Payment Options | Veterans Affairs

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option 1: pay the annual premium of your policy

If your dividend is less than your annual premium, you will receive a bill for the difference.

If your dividend is more than your policy’s annual premium, you’ll need to decide what to do with the remaining money. you can choose between these options:

Reading: What are dividends in insurance

  • ask us to pay you in cash, or
  • purchase additional paid insurance (option 2), or
  • pay a policy loan or lien if you have one (option 5)
  • option 2: take out additional paid insurance

    The insurance you buy with your dividends is in addition to your basic coverage and can be purchased at any age. You’ll earn dividends on both your basic coverage and paid add-ons.

    You can choose this option for most policies. but if your policy number begins with the letter k, additional paid insurance is not an option for you.

    with paid additions, you can do the following:

    • get more protection for your beneficiaries, and
    • hold cash values ​​and loans, and
    • earn dividends, and
    • stop paying premiums
    • option 3: deposit your dividend, earn interest and cover your premium

      When you have a credit account for your dividend payments, the interest you earn is not taxable.

      You can withdraw money at any time by calling us at 800-669-8477 or by sending us a written request.

      See also : How Much Do Insurance Agents Make? | TheTruthAboutInsurance.com

      If you miss a premium payment, we’ll automatically withdraw enough money from your credit account to pay one month’s premium (and let you know when we will).

      2022 interest rates:

      • national service life insurance: 2.50%
      • U.S. government life insurance: 3.50%
      • special life insurance for veterans: 3.25%
      • Reopening Veterans Insurance: 2.75%
      • option 4: deposit dividends, earn interest (cannot be used to cover premium)

        Interest earned on this type of account is not taxable. it is different from option 3 in these respects:

        • Not available to term policy holders.
        • If you miss a premium payment, we will not automatically withdraw money from this account to pay your premium.
        • If you want to pay your premium, you will need to call us at 800-669-8477 or send us a request in writing.
        • option 5: pay off a loan or lien

          If you have a loan or lien against your policy, you can use your dividends to pay back the amount you owe.

          option 6: payment of premiums in advance

          Use your dividends to pay premiums as early as possible.

          Note: You cannot use this option if your premiums are paid with one of these payment methods:

          • automatic payment by assignment of your retirement pay, or
          • deduction of compensation or pension, or
          • current account deduction (vamatic)
          • option 7: receive cash dividends

            Each year on your policy anniversary date, you’ll get your dividend in one of these ways:

            • a direct deposit of money into your bank account, or
            • one of us treasury check by mail (in limited situations)
            • questions about dividends

              can I change my dividend payment option?

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              yes. You can change your option at any time by calling us at 800-669-8477. we can answer any questions you may have about how dividend payment options work.

              Note: If you need help deciding which option to choose, you may want to talk to a financial planner.

              Can I choose more than one payment option?

              not. You can only use one dividend payment option for each policy. if you have more than one policy, you can choose different options for each of them.

              do all va life insurance policies pay dividends?

              not. only these policies pay dividends:

              • national service life insurance (policies beginning with v)
              • special life insurance for veterans (policies beginning with rs and w)
              • Reopened Veterans Insurance (policies beginning with j, jr, and js)
              • U.S. government life insurance (policies beginning withk)
              • Your policy pays dividends only if it begins with v, rs, w, j, jr, js, or k.

                Note: You may have heard rumors about special dividends for other life insurance plans. these rumors are false. We do not pay dividends on Servicemembers Group Life Insurance (SGL) or Veterans Group Life Insurance (VGL) coverage.

                more information on the rumors of special dividends

                Source: https://amajon.asia
                Category: Other

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