Recent VA News Releases


        To view and download VA news releases, please visit the following
Internet address:
                        http://www.va.gov/opa/pressrel>


        VA Announces 2003 Insurance Dividends

        WASHINGTON (Dec. 10, 2002) - The Department of Veterans Affairs (VA)
is announcing its distribution of more than $568 million in dividends to 1.5
million active policyholders of veterans life insurance.

        Over the next year, veterans will receive the payments on the
anniversary date of their policies, with the specific dividend amount
varying according to age, type of insurance and length of time the policy
has been in force.  Recipients will automatically receive their annual
dividend through one of the nine payment options they have selected in
advance.

        For current active-duty servicemembers and reservists covered by
Servicemembers' Group Life Insurance, no dividend is paid.

        Dividends cover only veterans with government life insurance
policies who served between 1917 and 1956.  Veterans of subsequent eras are
covered by government insurance programs that do not pay dividends.

        However, for some older policies still in force today, the dividends
represent a return of trust fund earnings on the premiums paid by
policyholders through the years.  These funds reflect the fact that veterans
are living longer than originally predicted and are also attributable to the
higher than expected yields earned by the trust funds from investments in
U.S. government securities.

        Only those with policies that have been kept in force when premiums
were required are eligible for the payout.  Inaccurate stories periodically
surface suggesting that those who have not maintained insurance are eligible
for a special distribution if they contact VA, but this is false.  Dividends
are automatically sent to eligible policyholders.

        The largest group receiving 2003 payments will be 1.3 million
veterans of World War II with National Service Life Insurance ("V")
policies.  Total payments are expected to reach $461.5 million.

        Dividends totaling $2.2 million will be paid to the 12,499 veterans
holding U.S. Government Life Insurance ("K") policies.

        Some 206,367 veterans who have maintained Veterans Special Life
Insurance ("RS" and "W") policies can expect to receive
dividends totaling
$88 million.

        Veterans who hold Veterans Reopened Insurance ("J",
"JR" and "JS")
policies, currently numbering 57,048, will share a $17.2 million dividend.

        Although VA also administers a special life insurance program for
disabled veterans and a program offering mortgage life insurance coverage,
neither pays dividends.

        Veterans who have questions about their policy may call the VA
Insurance toll-free number:  1-800-669-8477, or may send their e-mail to:
VAinsurance{at}vba.va.gov .


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