Fleeing Felons: Life Insurance Policy And Va Benefits

do fleeing felons lose their life insurance policyveith va

The U.S. Department of Veterans Affairs (VA) provides a range of benefits to veterans, including disability compensation, pension, education and training, health care, home loans, insurance, and burial. While incarceration can impact a veteran's access to these benefits, the specific implications vary depending on the type of benefit and the reason for incarceration. In the context of life insurance, it is important to understand the VA's definition of a fugitive felon. The VA considers an individual a fugitive felon if they flee law enforcement to avoid prosecution or imprisonment for a felony or if they violate the terms of their probation or parole. Fugitive felons and their families are generally ineligible for VA benefits, including life insurance. However, once the individual is no longer considered a fugitive felon, they and their family become eligible for cash benefits again. Understanding these nuances is crucial for veterans and their families to navigate their benefits effectively.

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Veterans Affairs Life Insurance (VALife)

Eligibility

Veterans aged 80 or younger with a VA service-connected disability rating are eligible for VALife, even if their rating is 0%. There is no time limit to apply after getting a disability rating.

Veterans aged 81 or older may be eligible for VALife if they meet the following requirements:

  • Before turning 81, they applied for VA disability compensation for a service-connected disability.
  • After turning 81, they received a rating for the same disability.
  • They apply for VALife within 2 years of getting the disability rating.

Benefits

VALife offers up to $40,000 in whole life insurance coverage, available in $10,000 increments. It also offers a cash value that starts accumulating 2 years after the application is approved.

Premiums

The premium amount depends on the veteran's age when they apply and the coverage amount they choose. The premium rate will not increase as long as the VALife policy is maintained.

Application and Accessing Policy

Veterans can check their eligibility and apply for VALife online. If the application is approved, they will be notified by email or text and provided with a link to access their policy through the VA life insurance portal.

Changing from S-DVI to VALife

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

Filing a Claim

Beneficiaries would need to fill out a "Claim for One Sum Payment" (VA Form 29-4125) and file it online through DocuSign or send it by mail.

VA Benefits and Incarceration

While veterans do not lose their eligibility for VA health care while in jail, they cannot receive treatment from a VA provider or hospital until they are released. Their family members can apply for apportionment to receive a portion of the veteran's benefits during their incarceration.

If a veteran is incarcerated, the VA may reduce or terminate their disability benefits depending on the type of benefit and the reason for incarceration. For disability compensation, benefits will be reduced if the veteran is convicted of a felony and imprisoned for more than 60 days. For VA pensions, payments will be terminated after 60 days of imprisonment, regardless of the conviction type.

Veterans who are considered fugitive felons by the VA—those who flee law enforcement to avoid prosecution or imprisonment for a felony, or who violate their probation or parole terms—will have their benefits, including life insurance, terminated. Once they are no longer considered fugitive felons, their benefits will be reinstated.

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Service-Disabled Veterans Life Insurance (S-DVI)

If you have S-DVI, you have two options:

  • You can apply for the new program called Veterans Affairs Life Insurance (VALife).
  • You can keep your S-DVI.

If you apply for VALife before 31 December 2025, you can keep your S-DVI during the 2-year waiting period for VALife benefits. Your S-DVI will end when your full VALife coverage starts, and you must pay premiums for both policies during the waiting period. If you apply for VALife on or after 1 January 2026, your S-DVI will end the day your VALife application is approved. You will only need to pay VALife premiums during the 2-year waiting period, but you will not have full coverage during this time.

VALife offers up to $40,000 in whole life insurance coverage in $10,000 increments and is available to veterans aged 80 or younger with a VA service-connected disability rating. There is no time limit to apply after getting your disability rating. If you are aged 81 or older, you may still be eligible for VALife if you meet certain requirements.

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Veterans' Group Life Insurance (VGLI)

  • The veteran had part-time Servicemembers' Group Life Insurance (SGLI) as a National Guard or Reserve member and suffered an injury or disability while on duty that disqualified them from standard premium rates.
  • The veteran had SGLI while on active duty and is within one year and 120 days of being released from active duty of 31 or more days.
  • The veteran is within one year and 120 days of retiring or being released from the Ready Reserve or National Guard.
  • The veteran is within one year and 120 days of assignment to the Individual Ready Reserve (IRR) or the Inactive National Guard (ING), including members of the United States Public Health Service Inactive Reserve Corps (IRC).
  • The veteran is within one year and 120 days of being placed on the Temporary Disability Retirement List (TDRL).

VGLI provides term life insurance benefits ranging from $10,000 to $500,000, determined by the SGLI coverage amount when leaving the military. Veterans can increase their coverage by $25,000 every five years up to $500,000 until they turn 60. To be eligible for VGLI, veterans must apply within one year and 120 days of leaving the military. If they apply within 240 days, they don't need to prove good health; otherwise, they must submit evidence of good health.

VGLI premium rates depend on the veteran's age and desired coverage amount. Beneficiaries can be chosen and updated as needed. VGLI coverage can also be converted to an individual insurance policy at standard premium rates without health proof.

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Veterans' Mortgage Life Insurance (VMLI)

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

  • Have a severe disability that was caused or made worse by their military service.
  • Have received a Specially Adapted Housing (SAH) grant to buy, build, or modify a home for more independent living. This includes installing ramps or widening doorways.
  • Hold the title to the home.
  • Have a mortgage on the home.
  • 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 coverage amount equals 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 down. If the mortgage is fully paid off, the VMLI coverage will end. Additionally, VMLI does not offer loans or cash value, nor does it pay dividends.

To apply for VMLI, veterans must first apply for an SAH grant. If approved for the grant, a loan guaranty agent will inform them of their eligibility for VMLI. Veterans who already have an SAH grant can inquire about VMLI with their agent. The agent will assist 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 VMLI premium is based on the current mortgage balance, the remaining number of mortgage payments, and the required VMLI coverage amount. A VMLI Premium Calculator is available to help determine the expected premium. To maintain VMLI coverage, veterans must notify the Department of Veterans Affairs of any changes to their mortgage, such as transferring to a different lender, refinancing, or making other adjustments.

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VA disability compensation payments

Veterans with a disability rating of 10% to 20% will not receive a higher rate even if they have a dependent spouse, child, or parent. However, those with a rating of 30% or greater and a dependent spouse, child, or parent may be eligible for increased payments. Additionally, veterans with a spouse with a serious disability may also qualify for higher payments.

It is important to note that VA disability compensation payments may be impacted by incarceration. If a veteran is convicted of a felony and imprisoned for more than 60 days, their disability compensation payments will be reduced. If their disability rating is 20% or higher, their payments will be limited to the amount available for people with a 10% rating during incarceration. On the other hand, if their rating is 10% or lower, the payment amount will be halved. Once the veteran is released from jail, their usual level of benefits will resume.

Veterans Affairs Life Insurance (VALife) is also available for veterans with service-connected disabilities. VALife provides low-cost coverage for eligible veterans, with no time limit to apply after receiving a disability rating. The premium rates vary based on age and the amount of coverage desired.

Frequently asked questions

VALife is a form of life insurance offered by the United States government that provides low-cost coverage to veterans with service-connected disabilities.

If you are aged 80 or younger and have a VA service-connected disability rating, you are eligible for VALife. If you are aged 81 or older, you may still be eligible if you applied for VA disability compensation before you turned 81 and received a rating for that disability after turning 81. You must also apply for VALife within 2 years of getting the notification of your disability rating.

VALife offers up to $40,000 in whole life insurance coverage in $10,000 increments and a cash value that starts to accumulate 2 years after your application is approved.

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

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