Disabled Vets: Enrolled In Life Insurance Automatically?

Veterans Affairs Life Insurance (VALife) is a guaranteed acceptance whole life insurance program for service-connected veterans aged 80 and under. It offers coverage of up to $40,000, available in $10,000 increments, and has a cash value that builds over time after the first two years of enrollment. VALife is available to veterans with any level of service-connected disability, from 0% to 100%. While VALife does not cover spouses or dependents of eligible veterans, it provides financial peace of mind for those who have served their country. This insurance plan is a valuable benefit for veterans, especially those with disabilities, as it ensures their loved ones will receive financial support in the event of their death.

Veterans Affairs Life Insurance (VALife)

To be eligible for VALife, veterans must have a VA service-connected disability rating and be aged 80 or younger. There is no time limit to apply after receiving a disability rating. Veterans aged 81 or older may also be eligible if they applied for VA disability compensation for a service-connected disability before turning 81 and received a rating for the same disability after turning 81. They must also apply for VALife within two years of getting their disability rating.

The cost of VALife depends on the veteran's age when they apply and the amount of coverage desired. The premium rate will never increase as long as the policy is maintained. If more than six months have passed since the veteran's last birthday, they are considered one year older when determining the premium rate. For example, a 59-year-old veteran who is 6 months and 1 day old will pay the rate for a 60-year-old.

Veterans can apply for VALife by checking their eligibility and submitting their first premium payment online. They can also contact their local DAV office for assistance with the application process.

VALife is a valuable program that provides financial security and peace of mind to service-connected veterans and their families. It is essential to review the terms, conditions, and eligibility requirements to ensure that veterans can make informed decisions about their life insurance coverage.

Service-Disabled Veterans Life Insurance (S-DVI)

It is important to note that Supplemental S-DVI is also closed to new applications. If you have S-DVI and want to switch to VALife, you can apply now or choose to maintain your current coverage. If you apply for VALife before December 31, 2025, you can retain your S-DVI during the 2-year waiting period for VALife benefits. Your S-DVI will end when your VALife coverage begins, and you must pay premiums for both policies during the waiting period.

If you apply for VALife on or after January 1, 2026, your S-DVI will be terminated upon approval of your VALife application. During the 2-year waiting period, you will only need to pay VALife premiums, but you will not have full coverage. It is important to note that VALife does not offer premium waivers, so if you have a waiver for S-DVI premiums, it will not transfer to VALife.

Veterans' Group Life Insurance (VGLI)

Eligibility

You may be eligible for VGLI if you meet at least one of the following requirements:

• You had part-time Servicemembers' Group Life Insurance (SGLI) as a member of the National Guard or Reserve and suffered an injury or disability while on duty that disqualified you for standard premium insurance rates.
• You had SGLI while you were in the military and you're within 1 year and 120 days of being released from an active-duty period of 31 or more days.
• You're within 1 year and 120 days of retiring or being released from the Ready Reserve or National Guard.
• You're within 1 year and 120 days of assignment to the Individual Ready Reserve (IRR) of a branch of service or to the Inactive National Guard (ING). This includes members of the United States Public Health Service Inactive Reserve Corps (IRC).
• You're within 1 year and 120 days of being put on the Temporary Disability Retirement List (TDRL).

Benefits

With VGLI, you can get between $10,000 and $500,000 in term life insurance benefits, based on how much SGLI coverage you had when you left the military. You can also increase your coverage by $25,000 every 5 years, up to $500,000, until you turn 60.

Application Process

To apply for VGLI, you need to do so within 1 year and 120 days of leaving the military. If you apply within 240 days, you don't need to prove you're in good health. After this period, you'll need to submit evidence of good health. You can apply through the Office of Servicemembers' Group Life Insurance (OSGLI) using the Prudential website or by mail/fax using the Application for Veterans' Group Life Insurance (SGLV 8714).

Premium Rates

VGLI premium rates are based on your age and the amount of insurance coverage you want. You can choose your age group to find the monthly premium rates as of April 1, 2021.

Beneficiaries

You can choose your beneficiaries and change them as needed. To update your beneficiary information, you can access your policy online through Prudential Life Insurance Company of America or fill out a VGLI Beneficiary Designation form (SGLV 8721) and mail it to OSGLI.

Conversion to Commercial Policy

You can convert your VGLI policy to a commercial (civilian) policy at any time, at standard premium rates, without providing proof of good health. To do so, choose a new insurance company, apply at their local sales office, and provide them with a VGLI Conversion Notice from OSGLI. The conversion policy must be a permanent policy, such as a whole life policy, and cannot be term, variable life, or universal life insurance.

Claims and Support

If you have questions about VGLI, you can call the Office of Servicemembers' Group Life Insurance (OSGLI) at 800-419-1473 or email the Prudential Insurance Company.

Servicemembers' Group Life Insurance (SGLI)

Servicemembers Group Life Insurance (SGLI) is a Department of Veterans Affairs program that provides low-cost group life insurance to all military members. SGLI coverage is automatic for most active-duty Servicemembers, including those in the Ready Reserve and National Guard who are scheduled to perform at least 12 periods of inactive training per year. Members of the Commissioned Corps of the National Oceanic and Atmospheric Administration and the Public Health Service, cadets and midshipmen of the U.S. military academies, and ROTC members are also covered.

SGLI offers a maximum of $500,000 in coverage, with the option to reduce coverage in $50,000 increments or cancel it entirely. The cost is 6 cents per $1,000 of coverage, or $31 per month for the maximum coverage of $500,000. This includes a $1 monthly charge for Traumatic Injury Protection (TSGLI), which provides coverage for losses due to traumatic injuries such as amputations, blindness, and paraplegia. TSGLI coverage ranges from $25,000 to $100,000 depending on the nature of the injury.

When you leave the military, your SGLI coverage will remain in effect for 120 days after your discharge, or up to two years if you are totally disabled at separation. After leaving the service, you can convert your SGLI to Veterans' Group Life Insurance (VGLI), a similar program with rates based on age.

Family members of Servicemembers are eligible for coverage under the Family Servicemembers' Group Life Insurance (FSGLI) program. Non-military spouses are covered automatically for $100,000 or the amount of the member's coverage, whichever is less. Military spouses must apply for coverage, and premiums are based on the spouse's age and amount of coverage. Dependent children are covered for $10,000 each at no cost to the member.

Veterans' Mortgage Life Insurance (VMLI)

• They must have a severe disability that was caused or worsened by their military service.
• They must have received a Specially Adapted Housing (SAH) grant to buy, build, or modify a home to accommodate their disability, such as installing ramps or widening doorways.
• They must hold the title to the home.
• They must have a mortgage on the home.
• They must be under 70 years old.

VMLI provides up to $200,000 in mortgage life insurance, which is paid directly to the bank or lender that holds the mortgage. The amount of coverage is equal to the outstanding mortgage balance but does not exceed $200,000. It is important to note that VMLI is a decreasing-term insurance, meaning that the coverage amount decreases as the mortgage balance is paid off, and the coverage ends if the mortgage is fully paid off. Additionally, VMLI does not offer loan value, cash value, or dividends.

To apply for VMLI, veterans must first apply for an SAH grant. If approved for the grant, the loan guaranty agent will inform them of their eligibility for VMLI. The agent will then assist the veteran in completing the Veterans' Mortgage Life Insurance Statement (VA Form 29-8636). It is important to note that VMLI applications must be submitted before the veteran's 70th birthday. The cost of VMLI premiums is based on the current mortgage balance, the remaining number of mortgage payments, and the required VMLI coverage amount.

VMLI helps protect the families of veterans with severe service-connected disabilities who have adapted their homes to meet their needs. It is important for eligible veterans to consider this valuable insurance option to ensure their families' financial security in the event of their passing.

Frequently asked questions