Life Insurance Options For Disabled Veterans: What You Need To Know

Yes, disabled veterans can get life insurance through the Veterans Affairs Life Insurance (VALife) program. VALife is a guaranteed acceptance whole life insurance program that offers coverage of up to $40,000 to veterans with service-connected disabilities who are aged 80 and under. The program began accepting applications on January 1, 2023, after the Service-Disabled Veterans Life Insurance (S-DVI) program stopped taking new applications.

Veterans Affairs Life Insurance (VALife)

Under this plan, the elected coverage takes effect two years after enrollment as long as premiums are paid during the two-year period. The full coverage amount is paid to beneficiaries if the policyholder dies after the two-year waiting period. If the policyholder dies during this period, beneficiaries will receive the total amount paid in premiums, plus interest.

The premium depends on the age when the veteran applies and the amount of coverage desired. The premium rate will never increase as long as the VALife policy is kept. If more than six months have passed since the policyholder's last birthday, they are considered a year older when determining the premium rate. For example, if someone is 59 years and six months old, they will pay the rate for a 60-year-old.

VALife does not offer premium waivers or loans.

Servicemembers' Group Life Insurance (SGLI)

• Ready Reserve and National Guard members 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
• ROTC members

You are automatically insured under SGLI for a maximum of $500,000 unless you choose otherwise. The VA raised this maximum from $400,000 to $500,000 in March 2023. You can always make changes to the amount of your SGLI coverage or change your beneficiary by using the SGLI Online Enrollment System (SOES), which is available on the Defense Manpower Data Center website. You can reduce the insurance by $50,000 increments or cancel it entirely.

SGLI costs 6 cents per $1,000 of coverage, which is a decrease from 7 cents per $1,000 of coverage that had been in effect since July 1, 2014. There is also a $1 monthly charge for Traumatic Injury Protection (TSGLI), which provides coverage for traumatic injuries. This brings the monthly premium to $31 for $500,000 worth of coverage.

When you leave the military, your SGLI will stay in effect for 120 days after your discharge, or up to 2 years if you are totally disabled at separation. After leaving the military, you can convert your SGLI to Veterans' Group Life Insurance (VGLI), a similar program.

SGLI also includes TSGLI, which provides protection against loss due to traumatic injuries and is designed to provide financial assistance to members so their loved ones can be with them during their recovery. The coverage ranges from $25,000 to $100,000 depending on the nature of the injury.

Veterans' Group Life Insurance (VGLI)

• You had part-time Servicemembers' Group Life Insurance (SGLI) as a member of the National Guard or Reserve and suffered an injury or disability that disqualified you for standard premium insurance rates while on duty, including direct travel to and from duty.
• 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).

With VGLI, you can get between $10,000 and $500,000 in term life insurance benefits, based on your SGLI coverage 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. To be eligible for these benefits, you must apply for VGLI within 1 year and 120 days of leaving the military. If you sign up within 240 days, you won't need to prove you're in good health; otherwise, you'll need to submit evidence of good health.

You can apply for VGLI through the Office of Servicemembers' Group Life Insurance (OSGLI) using the Prudential website or by mail/fax. You can also convert your VGLI policy into a commercial policy at any time, at standard premium rates, without providing proof of good health.

Service-Disabled Veterans Life Insurance (S-DVI)

The premium, or the amount paid for coverage, depends on the amount of insurance, the coverage plan, and whether payment is made monthly or annually. Under certain conditions, the basic S-DVI policy provides a premium waiver for veterans who are totally disabled. However, if you have supplemental S-DVI coverage, you must pay premiums even if you have a waiver for basic S-DVI premiums.

It is important to note that the S-DVI program has been replaced by the Veterans Affairs Life Insurance (VALife) program, which began accepting applications on January 1, 2023. VALife offers guaranteed acceptance whole life coverage of up to $40,000 to veterans with service-connected disabilities, with no age limit for application. The coverage amount takes effect two years after enrollment, provided that premiums are paid during that period.

If you have S-DVI, you have the option to either apply for VALife or retain your existing S-DVI coverage. Applying for VALife before December 31, 2025, allows you to keep your S-DVI coverage during the two-year waiting period for VALife benefits. However, if you apply on or after January 1, 2026, your S-DVI coverage will end upon approval of your VALife application, and you will only have VALife coverage during the waiting period. It is important to note that VALife does not offer premium waivers, so any waivers for S-DVI premiums will not transfer to VALife.

Veterans' Mortgage Life Insurance (VMLI)

Veterans Mortgage Life Insurance (VMLI) is a program that provides insurance coverage on home mortgages for certain severely disabled veterans. It is available to veterans who have received a Specially Adapted Housing (SAH) grant due to service-connected disabilities. The grant can be used to buy, build, or modify a home to enable independent living, such as by installing ramps or widening doorways.

VMLI offers 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 once the mortgage is fully paid off. Additionally, VMLI does not offer loans, cash value, or dividends.

To be eligible for VMLI, veterans must meet the following criteria:

• Have a severe disability that is service-related, meaning it was caused or aggravated by their military service.
• Have received an SAH grant.
• Hold the title to the home.
• Have a mortgage on the home.
• Be under 70 years of age.

To apply for VMLI, veterans can fill out and submit Form 29-8636, Application for Veterans Mortgage Life Insurance. The form can be downloaded from the Veterans Affairs website. It is important to note that veterans must apply for VMLI before their 70th birthday.

Frequently asked questions