Va's Right To Recover: Resident's Life Insurance

The US Department of Veterans Affairs (VA) offers life insurance to veterans, service members, and their spouses and dependent children. The VA's life insurance program, known as VALife, provides low-cost, guaranteed acceptance whole life insurance coverage of up to $40,000 to veterans with service-connected disabilities. This program is available to veterans aged 80 or younger, with no time limit to apply after receiving a disability rating. For those aged 81 or older, there are specific requirements that must be met to be eligible for VALife. The full coverage amount takes effect two years after enrollment, provided premiums are paid during this waiting period. If the insured passes away during this time, beneficiaries will receive the total amount paid in premiums plus interest.

Beneficiaries of VA life insurance plans can access free financial planning and online will preparation services. In the event of a claim, they must fill out a 'Claim for One Sum Payment' form and submit it online, by mail, or through the VA's secure web page.

Who can change a beneficiary designation for an incompetent veteran?

If a veteran is deemed incompetent, only a court-appointed guardian can change their beneficiary designation. In addition, the court-appointed guardian must obtain a specific court order authorizing them to make this change. The guardian must then complete form 29-336, Designation of Beneficiary and Optional Settlement, and include a copy of the guardianship documents and the specific court order with the form.

A court-appointed guardian is a person or legal entity appointed by a state or foreign court to supervise a beneficiary who is unable to manage their financial affairs and/or their estate. The statutory title of a court-appointed guardian may vary from state to state, with guardian, conservator, committee, trustee, or curator being the most commonly used titles.

It is important to note that the owner of a life insurance policy is the only person authorized to designate and change beneficiaries. The owner may change the beneficiary designation at any time before the death of the insured and without the consent or knowledge of the beneficiaries.

How can beneficiaries file a claim?

Beneficiaries can file a claim for VA life insurance benefits under the policyholder's plan. The process for doing so depends on the specific plan held by the policyholder.

Veterans Affairs Life Insurance (VALife)

If the policyholder has VALife, their beneficiaries would need to fill out and file a Claim for One Sum Payment (VA Form 29-4125). This can be done online through DocuSign, or the form can be uploaded online or sent by mail to the Department of Veterans Affairs Insurance Center.

Servicemembers' Group Life Insurance (SGLI)

If the policyholder has SGLI, the beneficiary should complete form SGLV 8283, Claim for Death Benefits, and contact the policyholder's Branch of Service Casualty Assistance Office for help submitting the form to the Office of Servicemembers Group Life Insurance (OSGLI).

Veterans' Group Life Insurance (VGLI)

If the policyholder has VGLI, the beneficiary should complete form SGLV 8283, Claim for Death Benefits, and fax it to 1-877-832-4943 or mail it to the following address, along with a copy of the death certificate:

> Office of Servicemembers' Group Life Insurance (OSGLI)

> PO Box 70173

> Philadelphia, PA 19176-9912

Family Servicemembers' Group Life Insurance (FSGLI)

If the policyholder has FSGLI, the beneficiary should complete form SGLV 8283A, Claim for Family Coverage Death Benefits, and contact the policyholder's Branch of Service Casualty Assistance Office for help submitting the form to the Office of Servicemembers Group Life Insurance (OSGLI).

Veterans Mortgage Life Insurance (VMLI)

If the policyholder has VMLI, the beneficiary should contact the VA Life Insurance Center at 800-669-8477 (TTY: 711).

What is the maximum coverage under VALife?

The maximum coverage under VALife is $40,000. This means that veterans with service-connected disabilities can receive up to $40,000 in whole life insurance coverage. This coverage is available in $10,000 increments, so eligible individuals can be covered for lesser amounts such as $10,000, $20,000, or $30,000. The cost of premiums depends on the age of the veteran when they apply and the amount of coverage they want. Importantly, premiums do not increase with age and are locked in at the rate paid upon enrollment.

The full-face amount of coverage takes effect two years after enrollment, as long as premiums are paid during the two-year waiting period. If the insured dies within this two-year period, the beneficiary will receive all premiums paid plus interest. After the two-year waiting period, the beneficiary will receive the full coverage amount.

What is the average time to pay a death claim?

The average time to pay a death claim is between 2 and 5 business days for Veterans Affairs Life Insurance (VALife). However, for other life insurance policies, the average time to pay a death claim can vary from 14 days to 60 days, depending on various factors. These factors include the insurer's process, the timing of the claim, the accuracy of the submitted documents, the policy duration, and the cause of death.

• Submit accurate and complete paperwork, including the death certificate, policy details, and any other required documents.
• File the claim promptly after the policyholder's death.
• Keep beneficiary information up to date to facilitate verification.
• Understand the policy terms and conditions, including any clauses that may affect the timing of the payout.
• Consult a financial advisor if the policy involves annuities or investments, as this may impact the timing of the payout.

How can veterans with service-connected disabilities apply for life insurance?

Veterans with service-connected disabilities can apply for life insurance through the VALife program. VALife is a guaranteed acceptance whole life insurance program that offers up to $40,000 in coverage for eligible veterans with service-connected disabilities. The coverage amount can be chosen in increments of $10,000.

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

• Have a VA service-connected disability rating (a rating of 0% is also acceptable)
• Be aged 80 or younger
• For veterans aged 81 or older, additional requirements must be met:
• Before turning 81 years old, a veteran must have applied for VA disability compensation for a service-connected disability
• After turning 81, the veteran must have received a rating for the same disability
• The application for VALife must be submitted within 2 years of receiving the disability rating

There is no time limit to apply for VALife after getting a disability rating. The application can be submitted online, and an immediate decision is provided. If approved, the veteran will receive an application confirmation, and they will be required to submit their first premium payment. The premium amount depends on the veteran's age and the chosen coverage amount, and it remains locked in for the duration of the policy.

VALife also offers cash value benefits that start accumulating 2 years after the application approval. It is important to note that VALife does not offer loans, and the full coverage takes effect 2 years after enrollment, provided that premiums are paid during this waiting period. If the insured passes away during this time, the beneficiaries will receive the total amount of premiums paid plus interest.

Veterans with Service-Disabled Veterans Life Insurance (S-DVI) have the option to apply for VALife or keep their existing S-DVI policy. If the application for VALife is submitted by December 31, 2025, veterans can retain their S-DVI coverage during the 2-year waiting period for VALife benefits. However, if the application is submitted on or after January 1, 2026, the S-DVI coverage will end upon approval of the VALife application.

Frequently asked questions