56-603, 1956-2 CB 601 (USGLI, NSLI
, and policies issued under the Servicemen's Indemnity Act of 1951).
2540 also extends the Native American Home Loan pilot program, provides VA authority to make beneficiary determinations for NSLI
and USGLI insurance proceeds if a beneficiary has not made a claim within five years, and creates a pilot program for expanding VA's toll-free informational hotline.
If your husband had Government Life Insurance, he was likely covered under NSLI
, VRI, or S-DVI, if he had a service-connected disability and elected coverage.
The IRS has held that in community property states which determine whether life insurance is separate or community property according to the "inception of title" doctrine (see Q 620), the proceeds of NSLI
purchased initially as the insured's separate property are separate property even though later premiums were paid with community funds.