--- kind: "section" citation: "38 U.S.C. § 1924" title: "38" title_heading: "Veterans’ Benefits" number: "1924" heading: "In-service waiver of premiums" release: "119-102" date: "2026-07-12" url: "https://uscodex.org/usc/38/1924" units: - "Part II — General Benefits" - "Chapter 19 — Insurance" - "Subchapter I — National Service Life Insurance" --- # §1924. In-service waiver of premiums - (a) Waiver of all premiums on five-year level premium term [insurance](/usc/38/1901.md?p=1) and that portion of any permanent [insurance](/usc/38/1901.md?p=1) premiums representing the cost of the pure [insurance](/usc/38/1901.md?p=1) risk, as determined by the [Secretary](/usc/38/101.md?p=1), granted on National Service Life [Insurance](/usc/38/1901.md?p=1) or United States Government life [insurance](/usc/38/1901.md?p=1) under section 622 of the National Service Life Insurance Act of 1940 and in effect on January 1, 1959, shall, unless canceled, continue in effect according to the provisions of such section for the remainder of the insured’s continuous active service and for one hundred and twenty days thereafter. Such premium waiver renders the contract of [insurance](/usc/38/1901.md?p=1) nonparticipating during the period the waiver is in effect. - (b) Whenever benefits become payable because of the maturity of such [insurance](/usc/38/1901.md?p=1) while under the premium waiver continued by this section, liability for payment of such benefits shall be borne by the United States in an amount which, when added to any [reserve](/usc/38/101.md?p=26) of the policy at the time of maturity, will equal the then value of such benefits under such policy. Where life contingencies are involved in the calculation of the value of such benefits, the calculation of such liability or liabilities shall be based upon such mortality table or tables as the [Secretary](/usc/38/101.md?p=1) may prescribe with interest at the rate of 2¼ per centum per annum as to [insurance](/usc/38/1901.md?p=1) issued under sections 620 and 621 of the National Service Life Insurance Act of 1940, at the rate of 3 per centum per annum as to other National Service Life [Insurance](/usc/38/1901.md?p=1), and 3½ per centum per annum as to United States Government life [insurance](/usc/38/1901.md?p=1). The [Secretary](/usc/38/101.md?p=1) shall transfer from time to time from the National Service Life [Insurance](/usc/38/1901.md?p=1) appropriation to the National Service Life [Insurance](/usc/38/1901.md?p=1) Fund and from the military and naval [insurance](/usc/38/1901.md?p=1) appropriation to the United States Government Life [Insurance](/usc/38/1901.md?p=1) Fund such sums as may be necessary to carry out the provisions of this section. - (c) In any case in which [insurance](/usc/38/1901.md?p=1) continued in force under this section matures on or after January 1, 1972, an amount equal to the amount of premiums, less dividends, waived on and after that date shall be placed as an indebtedness against the [insurance](/usc/38/1901.md?p=1) and, unless otherwise paid, shall be deducted from the proceeds. In such case, the liability of the Government under [subsection (b)](#b) of this section shall be reduced by the amount so deducted from the proceeds. ## Source credit (Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1157, § 724; Pub. L. 92–197, § 7, Dec. 15, 1971, 85 Stat. 662; renumbered § 1924 and amended Pub. L. 102–83, §§ 4(b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 Stat. 404–406.) ## Notes ### Editorial Notes ### References in Text Section 622 of the National Service Life Insurance Act of 1940, referred to in subsec. (a), is section 622 of act Oct. 8, 1940, ch. 757, title VI, pt. I, as added Apr. 25, 1951, ch. 39, pt. II, § 10, 65 Stat. 36, which enacted section 823 of former Title 38, Pensions, Bonuses, and Veterans’ Relief, and which was repealed and the provisions thereof reenacted as this section by Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1105. Sections 620 and 621 of the National Service Life Insurance Act of 1940, referred to in subsec. (b), are sections 620 and 621 of act Oct. 8, 1940, ch. 757, title VI, pt. I, as added Apr. 25, 1951, ch. 39, pt. II, § 10, 65 Stat. 36, which enacted sections 821 and 822 of former Title 38, Pensions, Bonuses, and Veterans’ Relief, and which were repealed and reenacted as sections 722 and 723 [now 1922 and 1923], respectively, of this title by Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1105. ### Amendments 1991—Pub. L. 102–83 renumbered section 724 of this title as this section and substituted “Secretary” for “Administrator” wherever appearing in subsecs. (a) and (b). 1971—Subsec. (c). Pub. L. 92–197 added subsec. (c). ### Statutory Notes and Related Subsidiaries ### Effective Date of 1971 Amendment Amendment by Pub. L. 92–197 effective Jan. 1, 1972, see section 10 of Pub. L. 92–197, set out as a note under section 1311 of this title.