Disabled Vets And Life Insurance: What's Covered?

Life insurance is a crucial consideration for veterans transitioning to civilian life, especially those with families or loved ones who depend on them financially. The Department of Veterans Affairs (VA) offers various life insurance programs to cater to the diverse needs of veterans, including those with service-connected disabilities. One notable option is the Veterans Affairs Life Insurance (VALife) program, which provides guaranteed acceptance whole life coverage of up to $40,000 for eligible veterans with service-connected disabilities.

Veterans Affairs Life Insurance (VALife)

Eligibility

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 be eligible for VALife if you meet the following requirements:

• Before you turned 81 years old, 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 the notification of your disability rating.

Benefits

VALife offers up to $40,000 in whole life insurance coverage, with cash value starting to accumulate two years after your application is approved. The coverage amount can be chosen in $10,000 increments.

Premiums

Your premium, or the amount you pay for coverage, depends on your age when you apply and the amount of coverage you want. Your premium rate will not increase as long as you keep your VALife policy.

If more than six months have passed since your last birthday, you will be considered one year older when determining your premium rate. For example, if you are 59 years, six months, and one day old, you will pay the rate for a 60-year-old.

Applying for VALife

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

If you already have Service-Disabled Veterans Life Insurance (S-DVI), you have two options:

• You can apply for VALife now, or
• You can keep your S-DVI.

If you apply for VALife by December 31, 2025, you can keep your S-DVI during the two-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 January 1, 2026, your S-DVI will end the day your VALife application is approved. You will only need to pay VALife premiums during the two-year waiting period, but you will not have full coverage during this time.

Service-Disabled Veterans Life Insurance (S-DVI)

VALife is a guaranteed acceptance whole life insurance program for service-connected veterans aged 80 and under, offering coverage of up to $40,000. There is no time limit to apply after receiving a disability rating, and the coverage amount can be chosen in increments of $10,000. The premium, or the amount paid for the coverage, depends on factors such as the amount of insurance, the coverage plan, and whether payments are made monthly or annually. It's important to note that VALife does not offer premium waivers or loans.

If you have S-DVI and decide to apply for VALife before December 31, 2025, you can retain your S-DVI coverage during the 2-year waiting period for VALife benefits. During this period, you must pay premiums for both policies. If the application for VALife is submitted on or after January 1, 2026, the S-DVI coverage will end the day the VALife application is approved, and only VALife premiums will need to be paid during the waiting period.

For those who are aged 81 or older, eligibility for VALife requires meeting specific conditions, including applying for VA disability compensation before turning 81 and receiving a rating for the same disability after turning 81. Additionally, the application for VALife must be submitted within 2 years of receiving the disability rating notification.

For any further questions or clarifications about S-DVI or VALife, individuals can contact the VA Life Insurance Center at 800-669-8477 (TTY: 711).

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 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 you're 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).

Benefits

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

Application Process

You need to apply for VGLI within 1 year and 120 days of leaving the military. If you sign up within 240 days of leaving the military, you won't need to prove you're in good health. If you sign up after the 240-day period, you'll need to submit evidence that you're in good health.

You can apply for VGLI in one of the following ways:

• Apply through the Office of Servicemembers' Group Life Insurance (OSGLI), using the Prudential website.
• Apply online through OSGLI.
• Apply by mail or fax. Fill out 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 find the monthly premium rates as of April 1, 2021, on the official website.

Beneficiaries

You can choose your beneficiaries and change 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 a VGLI Beneficiary Designation form (SGLV 8721).

Conversion to an Individual Insurance Policy

You can convert your VGLI coverage to an individual insurance policy by following these steps:

• Choose your new insurance company from the list of participating companies.
• Apply at the local sales office of your chosen company.
• Get a letter from OSGLI confirming your VGLI coverage (called a VGLI Conversion Notice) and provide this letter to the agent who takes your application.

Note that the conversion policy must be a permanent policy, such as a whole life policy. You cannot convert to other types of policies, like term, variable life, or universal life insurance. Supplementary policy benefits, like Accidental Death and Dismemberment or Waiver of Premium for Disability, are not considered part of the conversion policy.

Servicemembers' Group Life Insurance (SGLI)

SGLI provides coverage of up to $500,000, in $50,000 increments. The current basic SGLI premium rate is 6 cents per $1,000 of insurance coverage, with an additional $1 per month for Traumatic Injury Protection coverage (TSGLI). This means that for $500,000 of coverage, the monthly premium is $30, with a total monthly premium deduction of $31 including TSGLI.

SGLI offers a range of benefits, including 120 days of free coverage from the date of leaving the military and the option to extend free coverage for up to 2 years if the servicemember is totally disabled upon separation. It also allows for part-time coverage for Reserve members who do not qualify for full-time coverage. Servicemembers can choose their level of coverage and designate beneficiaries through the SGLI Online Enrollment System (SOES).

Upon separation or retirement, SGLI coverage can be converted to Veterans' Group Life Insurance (VGLI) within 1 year and 120 days from the date of discharge, retaining the same amount of coverage. Alternatively, SGLI can be converted to a permanent, individual insurance policy within 120 days of discharge without proof of good health.

For those who become totally disabled or terminally ill, SGLI offers certain benefits, such as the SGLI Disability Extension. To apply for this extension, individuals must fill out the SGLI Disability Extension Application (SGLV 8715) and send it to the OSGLI address. If approved, they will receive a notice 20 months after their separation date informing them of the end of their SGLI-DE coverage and the option to pay a premium for VGLI.

Veterans' Mortgage Life Insurance (VMLI)

• 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 to live more independently.
• Have the title of the home in their name.
• 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 amount of coverage will equal the outstanding mortgage balance but will 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. If the mortgage is fully paid off, the VMLI coverage will end.

To apply for VMLI, veterans can download and fill out Form 29-8636, Application for Veterans Mortgage Life Insurance (VMLI), and follow the included instructions. The form can be found on the Veterans Benefits Administration website. Additionally, veterans can call the Insurance Center at 1-800-669-8477 for more information or assistance.

VMLI is a valuable program that offers financial protection to eligible disabled veterans and their families, ensuring that their homes are secure even in the event of the veteran's death.

Frequently asked questions