38 U.S.C. § 1968 — Duration and termination of coverage; conversion

**(a)** Each policy purchased under this subchapter shall contain a provision, in terms approved by the Secretary, to the effect that any insurance thereunder on any member of the uniformed services, and any insurance thereunder on any insurable dependent of such a member, unless discontinued or reduced upon the written request of the insured (or discontinued pursuant to [section 1969(a)(2)(B) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title38-section1969/a/2/B&num=0&edition=prelim)), shall continue in effect while the member is on active duty, active duty for training, or inactive duty training scheduled in advance by competent authority during the period thereof, or while the member meets the qualifications set forth in subparagraph (B) or (C) of [section 1965(5) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title38-section1965/5&num=0&edition=prelim) and such insurance shall cease as follows: (1) With respect to a member on active duty or active duty for training under a call or order to duty that does not specify a period of less than 31 days, insurance under this subchapter shall cease as follows: (A) 120 days after the separation or release from active duty or active duty for training, unless on the date of such separation or release the member is totally disabled, under criteria established by the Secretary, in which event the insurance shall cease on the earlier of the following dates (but in no event before the end of 120 days after such separation or release): (i) The date on which the insured ceases to be totally disabled. (ii) The date that is two years after the date of separation or release from such active duty or active duty for training. (B) At the end of the thirty-first day of a continuous period of (i) absence without leave, (ii) confinement by civil authorities under a sentence adjudged by a civilian court, or (iii) confinement by military authorities under a courtmartial sentence involving total forfeiture of pay and allowances. Any insurance so terminated as the result of such an absence or confinement, together with any beneficiary designation in effect for such insurance at such termination thereof, shall be automatically revived as of the date the member is restored to active duty with pay or to active duty for training with pay. (2) With respect to a member on active duty or active duty for training under a call or order to duty that specifies a period of less than 31 days, insurance under this subchapter shall cease at midnight, local time, on the last day of such duty, unless on such date the insured is suffering from a disability incurred or aggravated during such period which, within 120 days after such date, (i) results in death, or (ii) renders the member uninsurable at standard premium rates according to the good health standards approved by the Secretary, in which event the insurance shall continue in force to death, or for 120 days after such date, whichever is the earlier date. (3) With respect to a member on inactive duty training scheduled in advance by competent authority, insurance under this subchapter shall cease at the end of such scheduled training period, unless at such time the insured is suffering from a disability incurred, or aggravated during such period which, within 120 days after the date of such training, (i) results in death, or (ii) renders the member uninsurable at standard premium rates according to the good health standards approved by the Secretary in which event the insurance shall continue in force to death, or for 120 days after the date such training terminated, whichever is the earlier date. (4) With respect to a member of the Ready Reserve of a uniformed service who meets the qualifications set forth in subparagraph (B) or (C) of [section 1965(5) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title38-section1965/5&num=0&edition=prelim), insurance under this subchapter shall cease 120 days after separation or release from such assignment, unless on the date of such separation or release the member is totally disabled, under criteria established by the Secretary, in which event the insurance shall cease on the earlier of the following dates (but in no event before the end of 120 days after separation or release from such assignment): (A) The date on which the insured ceases to be totally disabled. (B) The date that is two years after the date of separation or release from such assignment. (5) With respect to an insurable dependent of the member, insurance under this subchapter shall cease— (A) 120 days after the date of an election made in writing by the member to terminate the coverage; or (B) on the earliest of— (i) 120 days after the date of the member’s death; (ii) (I) in the case of a member of the Ready Reserve of a uniformed service who meets the qualifications set forth in subparagraph (B) or (C) of [section 1965(5) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title38-section1965/5&num=0&edition=prelim), 120 days after separation or release from such assignment; or (II) in the case of any other member of the uniformed services, 120 days after the date of the member’s separation or release from the uniformed services; or (iii) 120 days after the termination of the dependent’s status as an insurable dependent of the member. **(b)** (1) Each policy purchased under this subchapter shall contain a provision, in terms approved by the Secretary, that, except as hereinafter provided, Servicemembers’ Group Life Insurance which is continued in force after expiration of the period of duty or travel under section 1967(b) or 1968(a) of this title, effective the day after the date such insurance would cease— (A) shall be automatically converted to Veterans’ Group Life Insurance (to insure against death of the member only), subject to (i) the timely payment of the initial premium under terms prescribed by the Secretary, and (ii) the terms and conditions set forth in [section 1977 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title38-section1977&num=0&edition=prelim); or (B) at the election of the member, shall be converted to an individual policy of insurance as described in [section 1977(e) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title38-section1977/e&num=0&edition=prelim) upon written application for conversion made to the participating company selected by the member and payment of the required premiums. (2) Automatic conversion to Veterans’ Group Life Insurance under paragraph (1) shall be effective only in the case of an otherwise eligible member or former member who is separated or released from a period of active duty or active duty for training or inactive duty training on or after the date on which the Veterans’ Group Life Insurance program (provided for under [section 1977 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title38-section1977&num=0&edition=prelim)) becomes effective. (3) (A) In the case of a policy purchased under this subchapter for an insurable dependent who is a spouse, upon election of the spouse, the policy may be converted to an individual policy of insurance under the same conditions as described in [section 1977(e) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title38-section1977/e&num=0&edition=prelim) (with respect to conversion of a Veterans’ Group Life Insurance policy to such an individual policy) upon written application for conversion made to the participating company selected by the spouse and payment of the required premiums. Conversion of such policy to Veterans’ Group Life Insurance is prohibited. (B) In the case of a policy purchased under this subchapter for an insurable dependent who is a child, such policy may not be converted under this subsection.