Life Insurance For Elderly Veterans: Is It Possible?

Life insurance is a crucial consideration for veterans of any age, especially those who are elderly and have families or other dependents. The Department of Veterans Affairs (VA) offers a range of benefits and services to support elderly veterans, including insurance, and it's important to understand the options available. Veterans can explore life insurance plans offered by the VA or opt for private insurance companies, each with its own advantages and limitations. Understanding these options is essential for veterans to make informed decisions about their financial security and the well-being of their loved ones.

Veterans Affairs Life Insurance (VALife)

Eligibility for VALife

If you are 80 or younger, you are eligible for VALife if you have a VA service-connected disability rating, even if your rating is 0%. There is no time limit to apply after getting your disability rating.

If you are 81 or older, you may still be eligible for VALife if you meet the following requirements:

• Before you turned 81, you applied for VA disability compensation for a service-connected disability.
• After you turned 81, you received a rating for that same disability.
• You apply for VALife within two years of getting notification of your disability rating.

Benefits of VALife

VALife offers:

• Up to $40,000 in whole life insurance coverage (in $10,000 increments).
• Cash value that starts to accumulate two years after your application is approved.
• Guaranteed acceptance, meaning that if you meet the eligibility requirements, your application will be automatically approved. You will not need to prove that you are in good health.
• Coverage for the rest of your life.
• A premium rate that will never increase for as long as you keep your VALife policy.

Cost of VALife

Your premium will depend on your age when you apply and the amount of coverage you want. If more than six months have passed since your last birthday, you will be considered one year older when determining your premium rate.

Applying for VALife

You can check your eligibility and apply for VALife online. When you apply, you will need to submit your first premium payment.

When your benefits will start

Your full life insurance coverage starts two years after you apply. You must pay the premiums during those two years. If you die during this two-year waiting period, your beneficiaries will receive the total amount you paid in premiums, plus interest. If you die after the two-year waiting period, your beneficiaries will receive the full coverage amount of your policy.

Servicemembers' Group Life Insurance (SGLI)

The maximum amount of coverage provided by SGLI is $500,000, although you can choose to reduce this amount or cancel it entirely. The cost of SGLI is 6 cents per $1,000 of coverage, with an additional $1 monthly charge for Traumatic Injury Protection (TSGLI), which provides coverage for injuries such as amputations, blindness, and paraplegia. This brings the monthly premium to $31 for $500,000 worth of coverage.

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

Family members of servicemembers are also eligible for coverage under the Family Servicemembers' Group Life Insurance (FSGLI) program. This provides coverage for spouses and dependent children of those insured under SGLI. Non-military spouses are automatically covered for $100,000 or the amount of the member's coverage, whichever is less, while military spouses must apply for coverage. Dependent children are automatically covered for $10,000 each at no additional cost.

Veterans' Group Life Insurance (VGLI)

Eligibility for VGLI

To be eligible for VGLI, you must 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 you 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 are within 1 year and 120 days of being released from an active-duty period of 31 or more days.
• You are within 1 year and 120 days of retiring or being released from the Ready Reserve or National Guard.
• You are 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 are within 1 year and 120 days of being put on the Temporary Disability Retirement List (TDRL).

VGLI Benefits

With VGLI, you can receive between $10,000 and $500,000 in term life insurance benefits, based on your SGLI coverage amount 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.

Applying for VGLI

To apply for VGLI, you must do so within 1 year and 120 days of leaving the military. If you apply within 240 days of leaving the military, you don't need to provide proof of good health. However, if you apply after this 240-day period, you will 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 by filling out the Application for Veterans' Group Life Insurance (SGLV 8714).

VGLI Premium Rates

VGLI premium rates are based on your age and the amount of insurance coverage you choose. As of April 1, 2021, the monthly premium rates vary depending on the coverage amount.

Choosing and Updating Beneficiaries

Yes, you can choose your beneficiaries and modify them as needed. You can update your beneficiary information by accessing your policy online through the Prudential Life Insurance Company of America or by filling out and submitting the VGLI Beneficiary Designation form (SGLV 8721).

Converting VGLI to a Commercial Policy

You can convert your VGLI policy to a commercial (civilian) policy at any time and at standard premium rates without providing proof of good health. You will need to choose a new insurance company, apply at their local sales office, and provide them with a VGLI Conversion Notice from OSGLI. It's important to note that the conversion policy must be a permanent policy, such as a whole life policy, and supplementary policy benefits are not included in the conversion.

Family Servicemembers' Group Life Insurance (FSGLI)

You may be eligible for FSGLI if you’re the spouse or dependent child of a service member who meets one of these requirements:

• The service member is on active duty and covered by full-time SGLI.
• The service member is a member of the National Guard or Ready Reserve covered by full-time SGLI.

You may qualify to get FSGLI as the spouse of someone with SGLI coverage no matter if your own status is active duty, retired, or civilian. Dependent children are covered for $10,000 each at no cost to the member.

If you’re the civilian spouse of a service member signed up for full-time SGLI, you’ll automatically be insured under FSGLI. In this case, the premium will automatically be taken out of your service member’s pay. If you’re a military spouse married on or after January 2, 2013, you won’t be automatically covered. You’ll need your service member to sign you up online through the SGLI Online Enrollment System (SOES).

Your service member will pay a premium for your coverage, which will increase as you age. To continue receiving dependent coverage after age 18, one of these must be true:

• The child is a full-time student.
• The child becomes permanently and totally disabled before turning 18 and can’t support themselves.

In some cases, coverage can be extended if the child is a full-time student between 18 and 22 years old, or if the child becomes permanently and totally disabled before turning 18 and is no longer able to support themselves.

Service-Disabled Veterans' Life Insurance (S-DVI)

Service-Disabled Veterans Life Insurance (S-DVI) is a program that provides low-cost coverage to eligible service members with service-connected disabilities. This program stopped accepting new applications after December 31, 2022, but existing policyholders can retain their coverage.

If you are a veteran with a service-connected disability, you may be eligible for the new 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 in increments of $10,000 to veterans aged 80 and under. There is no time limit to apply after receiving your disability rating. If you are aged 81 or older, you may still be eligible if you meet certain requirements.

The premium (the amount you pay for coverage) depends on your age, the amount of coverage desired, and whether you pay monthly or annually. Your premium rate will remain unchanged as long as you keep your VALife policy.

If you currently have S-DVI and wish to switch to VALife, you have two options:

• Apply for VALife by December 31, 2025: You can maintain your S-DVI coverage during the two-year waiting period for VALife benefits. Your S-DVI coverage will end when your full VALife coverage begins, and you must pay premiums for both policies during the waiting period.
• Apply for VALife on or after January 1, 2026: Your S-DVI coverage will end when your VALife application is approved, and you will only need to pay VALife premiums during the two-year waiting period. However, you will not have full coverage during this time.

Note that VALife does not offer premium waivers or loans. If you have a waiver for S-DVI premiums, it will not transfer to VALife.

Frequently asked questions