Government Life Insurance

What Does Government Life Insurance Mean?

Government life insurance refers to a program established by the U.S. government in 1917 to offer life insurance to soldiers serving in World War I. The issuance of these policies ceased in 1951, seven years after the end of World War II.

Insuranceopedia Explains Government Life Insurance

In 1917, the U.S. declared war on Germany, marking the entry of the country into World War I. Private insurance companies considered soldiers too high a risk and either denied them coverage or charged exorbitant premiums. In response, the government provided life insurance to enlisted soldiers. That same risk-based pricing still applies today, where age, health, occupation, and lifestyle are among the main factors that impact life insurance premium costs. People in dangerous jobs, including police officers, can still face higher rates, though private insurers will usually issue the policy.

By 1983, all premiums for these policies had been fully paid. As of 2010, several surviving policyholders were still receiving benefits from the program.