Disabled Vets: Free Va Insurance Coverage For Life?

Veterans Affairs Life Insurance (VALife) is a program that provides low-cost coverage to veterans with service-connected disabilities. The program offers guaranteed acceptance whole life coverage of up to $40,000, with lesser amounts available in increments of $10,000. To be eligible for VALife, veterans must have a VA service-connected disability rating and be aged 80 or younger. There is no time limit to apply after receiving a disability rating. The premium, or the amount paid for coverage, depends on the age of the veteran and the desired amount of coverage. While VALife does not offer premium waivers or loans, it does provide financial security for veterans and their families.

Veterans Affairs Life Insurance (VALife)

VALife provides low-cost coverage to veterans with service-connected disabilities. To be eligible for VALife, veterans must have a VA service-connected disability rating, even if the rating is 0%. There is no time limit to apply after receiving a disability rating. If you are aged 81 or older, you may still be eligible for VALife if you meet certain requirements.

The cost of VALife depends on your age when you apply and the amount of coverage you want. The premium rate will not increase as long as you keep your VALife policy. However, 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 and six months old, you will pay the rate for a 60-year-old.

VALife does not offer premium waivers or loans. If you have Service-Disabled Veterans Life Insurance (S-DVI) and want to switch to VALife, you can apply now or keep your S-DVI policy. 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 policy 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 policy will end the day 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.

Service-Disabled Veterans Life Insurance (S-DVI)

If you are an eligible service member, you can also apply for the new program called Veterans Affairs Life Insurance (VALife), which has been accepting applications since January 1, 2023. VALife offers guaranteed acceptance whole life coverage of up to $40,000 to veterans with service-connected disabilities, with lesser amounts available in increments of $10,000. The coverage takes effect two years after enrollment, provided that premiums are paid during this two-year period.

If you already have S-DVI, you have the option to either apply for VALife or keep your existing S-DVI coverage. If you apply for VALife before December 31, 2025, you can retain your S-DVI coverage during the two-year waiting period for VALife benefits. However, you will need to pay premiums for both policies during this waiting period. If you apply for VALife on or after January 1, 2026, your S-DVI coverage will end the day your VALife application is approved, and you will only need to pay VALife premiums during the waiting period, but you won't have full coverage during this time. It is important to note that VALife does not offer premium waivers, so if you have a waiver for S-DVI premiums, it will not transfer to VALife.

For more information or questions about your specific situation, you can contact the VA Life Insurance Center at 800-669-8477 (TTY: 711). They are available from 8:30 a.m. to 6:00 p.m. ET and can provide assistance with various VA life insurance policies.

Veterans' Mortgage Life Insurance (VMLI)

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

• Have a severe disability that is service-related, meaning it was caused or worsened 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 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 and decreases as the balance is paid off. It is important to note that VMLI does not have any loan or cash value, and it does not pay dividends.

To apply for VMLI, veterans need to first apply for an SAH grant. If approved for the grant, a loan guaranty agent will inform them of their eligibility for VMLI. The agent will then assist the veteran in completing a 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.

Servicemembers' Group Life Insurance (SGLI)

If you are eligible for SGLI, you will be automatically signed up through your service branch. You can check your unit's personnel office for more information.

The benefits of SGLI include:

• Coverage up to the top limit of $500,000, in $50,000 increments
• 120 days of free coverage from the date you left the military
• Extension of free coverage for up to 2 years (if you are totally disabled) when you leave the military
• Part-time coverage (if you are a Reserve member who doesn't qualify for full-time coverage)

The cost of SGLI is a monthly premium that is automatically taken out of your base pay. The current basic SGLI premium rate is 6 cents per $1,000 of insurance coverage, including an additional $1 per month for Traumatic Injury Protection coverage (TSGLI). For example, if you have $500,000 of coverage, your monthly premium will be $31 ($30 for SGLI + $1 for TSGLI).

You can choose your level of coverage or even refuse coverage completely. You can also choose your beneficiaries (the people you pick to receive the money from your life insurance policy if you die) and change them as needed. To make changes to your SGLI coverage, you can submit them online through the SGLI Online Enrollment System (SOES).

When you leave the military, you have the option to convert your SGLI coverage to a permanent, individual insurance policy within 120 days from your date of discharge without proof of good health. You can also apply for Veterans' Group Life Insurance (VGLI) within 1 year and 120 days from your date of discharge, for up to the amount of coverage you had through SGLI.

Veterans' Group Life Insurance (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 suffered an injury or disability while on duty that disqualified you from standard premium insurance rates.
• You had SGLI while you were in the military and you're within 1 year and 120 days of being released from active duty (for a 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) or Inactive National Guard (ING), including members of the US Public Health Service Inactive Reserve Corps (IRC).
• You're within 1 year and 120 days of being placed on the Temporary Disability Retirement List (TDRL).

The benefits offered by VGLI include term life insurance coverage ranging from $10,000 to $500,000, based on the amount of SGLI coverage you had when you left the military. You can also increase your coverage by $25,000 every 5 years, up to a maximum of $500,000, until you turn 60 years old. Additionally, VGLI allows you to choose and update your beneficiaries as needed.

To apply for VGLI, you must do so within 1 year and 120 days of leaving the military. If you apply within 240 days, you won't need to provide proof of good health. However, if you apply after this period, you'll need to submit evidence of your health status. You can apply through the Office of Servicemembers' Group Life Insurance (OSGLI) using their website or by mail/fax.

VGLI premium rates are determined by your age and the desired amount of insurance coverage. It's important to note that VGLI rates are subject to change over time. Therefore, it's recommended to refer to the official VGLI website for the most up-to-date information on premium rates.

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