Subchapter IV. Life Insurance
50 U.S.C. § 3974: SCRA Lapse Protection for Life Insurance
Official heading: Policies entitled to protection and lapse of policies
In one line
The VA decides whether a policy qualifies. Once it does, the policy cannot lapse, terminate, or be forfeited for nonpayment of premiums, and the protection lasts through service and two years after.
- Protection applies during the period of military service and for two years thereafter
- Lapse protection starts on the date the Secretary of Veterans Affairs receives the application
Text checked October 9, 2026
What § 3974 does to your money
Section 3974 is the payoff of the application. The Secretary of Veterans Affairs decides whether the policy qualifies and notifies you and the insurer. A policy found entitled to protection may not lapse, terminate or be forfeited for nonpayment of a premium, or of interest or debt on a premium, after the date the VA received your application.
Protection lasts for your period of military service and two years after. Apply early: lapse protection runs from the VA’s receipt of the application, not from the day you entered service, so premiums missed before that date are not covered by this section.
The premiums are not forgiven. The United States guarantees them under § 3977, and when protection ends the unpaid amount becomes a loan against the policy, or a debt to the government if the cash value falls short. While the policy is protected you can still change a beneficiary or choose a settlement option for one (§ 3975). If the VA finds the policy does not qualify, it must notify you and the insurer, and the policy’s normal lapse rules apply. Ask for written confirmation of the date the VA received your application.
Guides on this site that apply § 3974
- SCRA Eligibility: Who Qualifies, When It Starts & Ends
Who qualifies for the SCRA under 50 U.S.C. § 3911: active duty, Guard, Reserve, spouses, veterans, and which debts count. Status table, start and end dates.
The full text of 50 U.S.C. § 3974
From the United States Code, 2024 Edition, current through January 6, 2025, as published by the U.S. Government Publishing Office on GovInfo (retrieved October 10, 2026). No amendment enacted after the edition cutoff was found on Cornell LII or in GovInfo’s compiled SCRA (amended through Pub. L. 118-159, Dec. 23, 2024). House style: the Code’s em dashes before a list are shown as colons, and en dashes as hyphens or “to”; no word of the text is changed.
(a) Determination
The Secretary of Veterans Affairs shall determine whether a policy is entitled to protection under this subchapter and shall notify the insured and the insurer of that determination.
(b) Lapse protection
A policy that the Secretary determines is entitled to protection under this subchapter shall not lapse or otherwise terminate or be forfeited for the nonpayment of a premium, or interest or indebtedness on a premium, after the date on which the application for protection is received by the Secretary.
(c) Time application
The protection provided by this subchapter applies during the insured's period of military service and for a period of two years thereafter.
Enacted and amended by: (Oct. 17, 1940, ch. 888, title IV, §404, as added Pub. L. 108-189, §1, Dec. 19, 2003, 117 Stat. 2853.)
Effective date: Section applicable to any case not final before Dec. 19, 2003, see section 3 of Pub. L. 108-189, set out as a note under section 3901 of this title.
Every section of the Act, including the short administrative ones without their own page, is on the section-by-section index.
Heads up: SCRA Saver publishes general information, not legal or financial advice. Laws change and every situation differs. Confirm details with your installation legal assistance office (free for service members) or a licensed professional.