---
kind: "section"
citation: "38 U.S.C. § 1942"
title: "38"
title_heading: "Veterans’ Benefits"
number: "1942"
heading: "Plans of insurance"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/38/1942"
units:
  - "Part II — General Benefits"
  - "Chapter 19 — Insurance"
  - "Subchapter II — United States Government Life Insurance"
---

# §1942. Plans of insurance

- (a) Regulations shall provide for the right to convert [insurance](/usc/38/1901.md?p=1) on the five-year level premium term plan into ordinary life, twenty-payment life, endowment maturing at age sixty-two, and into other usual forms of [insurance](/usc/38/1901.md?p=1) as may be prescribed by the [Secretary](/usc/38/101.md?p=1). Provision shall be made for reconversion of any such policies to a higher premium rate or, upon proof of good health satisfactory to the [Secretary](/usc/38/101.md?p=1), to a lower premium rate, in accordance with regulations to be issued by the [Secretary](/usc/38/101.md?p=1). No reconversion shall be made to a five-year level premium term policy.
- (b) An insured who on or after the insured’s sixty-fifth birthday has a five-year level premium term policy of [insurance](/usc/38/1901.md?p=1) in force by payment of premiums may exchange such policy for [insurance](/usc/38/1901.md?p=1) on a special endowment at age ninety-six plan upon written application; payment of the required premium; and surrender of the five-year level premium term policy and any total [disability](/usc/38/1701.md?p=1) provision attached thereto with all rights, title, and interests thereunder. However, if it is found by the [Secretary](/usc/38/101.md?p=1) subsequent to the exchange that prior thereto the term policy matured because of total permanent [disability](/usc/38/1701.md?p=1) of the insured or that the insured was entitled to total [disability](/usc/38/1701.md?p=1) benefits under the total [disability](/usc/38/1701.md?p=1) provision attached to such policy, the insured, upon surrender of the special endowment at age ninety-six policy and any provision for waiver of premiums issued under [subsection (c)](#c) of this section with all rights, title, and interest thereunder, will be entitled to benefits payable under the prior contract. In such case, the cash value less any indebtedness on the endowment policy shall be refunded together with any premiums paid on a provision for waiver of premiums. [Insurance](/usc/38/1901.md?p=1) on the special endowment at age ninety-six plan shall be issued at the attained age of the insured upon the same terms and conditions as are contained in standard policies of United States Government Life [Insurance](/usc/38/1901.md?p=1) except:
  - (1) the [insurance](/usc/38/1901.md?p=1) shall not mature and no benefits shall be paid thereunder because of total permanent [disability](/usc/38/1701.md?p=1);
  - (2) the premiums for such [insurance](/usc/38/1901.md?p=1) shall be as prescribed by the [Secretary](/usc/38/101.md?p=1);
  - (3) such [insurance](/usc/38/1901.md?p=1) cannot be exchanged, converted, or reconverted to any other plan of [insurance](/usc/38/1901.md?p=1);
  - (4) all cash, loan, paid-up, and extended term [insurance](/usc/38/1901.md?p=1) values shall be as prescribed by the [Secretary](/usc/38/101.md?p=1); and
  - (5) the [insurance](/usc/38/1901.md?p=1) shall be subject to such other changes in terms and conditions as the [Secretary](/usc/38/101.md?p=1) determines to be reasonable and practicable.
- (c) The [Secretary](/usc/38/101.md?p=1) shall, upon application made by the insured at the same time as the insured exchanges the term policy for an endowment policy issued under the provisions of [subsection (b)](#b) of this section, and upon payment of such extra premium as the [Secretary](/usc/38/101.md?p=1) shall prescribe, include in such endowment policy a provision for waiver of premiums on the policy and on the provision during the total permanent [disability](/usc/38/1701.md?p=1) of the insured, if such [disability](/usc/38/1701.md?p=1) began after the date of such application and while the policy and the provision are in force by payment of premiums. The [Secretary](/usc/38/101.md?p=1) shall not grant waiver of any premium becoming due more than one year before receipt by the [Secretary](/usc/38/101.md?p=1) of claim for the same, except as provided in this subsection. Any premiums paid for months during which waiver is effective shall be refunded. The [Secretary](/usc/38/101.md?p=1) shall provide by regulations for examination or reexamination of an insured claiming waiver of premiums under this subsection, and may deny waiver for failure to cooperate. If it is found that an insured is no longer totally and permanently disabled, the waiver of premiums shall cease as of the date of such finding and the policy and provision may be continued by payment of premiums as provided therein. In any case in which the [Secretary](/usc/38/101.md?p=1) finds that the insured’s failure to make timely claim for waiver of premiums, or to submit satisfactory evidence of the existence or continuance of total permanent [disability](/usc/38/1701.md?p=1) was due to circumstances beyond the insured’s control, the [Secretary](/usc/38/101.md?p=1) may grant waiver or continuance of waiver of premiums. If the insured dies without filing claim for waiver, the beneficiary, within one year after the death of the insured, or, if the beneficiary is insane or a minor, within one year after removal of such legal [disability](/usc/38/1701.md?p=1), may file claim for waiver with evidence of the insured’s right to waiver under this subsection. Policies containing a provision for waiver of premiums issued under this subsection may be separately classified for the purpose of dividend distribution from otherwise similar policies not containing such provision.

## Source credit

(Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1158, § 742; Pub. L. 87–549, July 25, 1962, 76 Stat. 219; Pub. L. 99–576, title VII, § 701(29), Oct. 28, 1986, 100 Stat. 3292; renumbered § 1942 and amended Pub. L. 102–83, §§ 4(a)(2)(C)(iii), (b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 Stat. 404–406.)

## Notes

### Editorial Notes

### Amendments

1991—Pub. L. 102–83, § 5(a), renumbered section 742 of this title as this section.

Subsecs. (a), (b). Pub. L. 102–83, § 4(b)(1), (2)(E), substituted “Secretary” for “Administrator” wherever appearing.

Subsec. (c). Pub. L. 102–83, § 4(b)(1), (2)(E), substituted “Secretary” for “Administrator” wherever appearing.

Pub. L. 102–83, § 4(a)(2)(C)(iii), substituted “by the Secretary” for “in the Veterans’ Administration”.

1986—Subsec. (b). Pub. L. 99–576, § 701(29)(A), substituted “the insured’s” for “his” and “the insured” for “he”.

Subsec. (c). Pub. L. 99–576, § 701(29)(B), substituted “the insured” for “he”, “the term” for “his term”, and “the insured’s control” for “his control”, and struck out “his failure” before “to submit”.

1962—Pub. L. 87–549 designated existing provisions as subsec. (a) and added subsecs. (b) and (c).