Veterans Affairs Life Insurance (VALife) is a program that provides low-cost, whole life insurance coverage of up to $40,000 to US veterans with service-connected disabilities. The coverage amount takes effect two years after enrollment, provided that premiums are paid during this period. If the insured dies within the two-year waiting period, the beneficiary will receive all premiums paid plus interest. VALife does not offer premium waivers or loans, and premiums do not increase with age. Veterans aged 80 or younger are eligible for VALife if they have a VA service-connected disability rating.
What You'll Learn
Veterans' Group Life Insurance (VGLI)
- The veteran 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 them for standard premium rates.
- The veteran had SGLI while in the military and is within 1 year and 120 days of being released from active duty of 31 or more days.
- The veteran is within 1 year and 120 days of retiring or being released from the Ready Reserve or National Guard.
- The veteran is within 1 year and 120 days of assignment to the Individual Ready Reserve (IRR) or Inactive National Guard (ING), including members of the United States Public Health Service Inactive Reserve Corps (IRC).
- The veteran is within 1 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, depending on the SGLI coverage the veteran had when they left the military. Veterans can increase their coverage by $25,000 every 5 years, up to $500,000, until they turn 60. It is important to note that VGLI premium rates are based on age and the desired amount of insurance coverage.
To obtain VGLI benefits, veterans must apply within 1 year and 120 days of leaving the military. If they apply within 240 days, they are exempt from providing proof of good health; otherwise, they must submit evidence of their health status. Applications can be made through the Office of Servicemembers' Group Life Insurance (OSGLI) using the Prudential website or by mail/fax with the relevant form.
VGLI allows veterans to choose and update their beneficiaries as needed. Additionally, VGLI policies can be converted into commercial policies at standard premium rates without health status proof. This conversion must be a permanent policy, such as whole life insurance, and cannot include supplementary benefits like Accidental Death and Dismemberment or Waiver of Premium for Disability.
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Service-Disabled Veterans Life Insurance (S-DVI)
If you have S-DVI, you can either apply for the new Veterans Affairs Life Insurance (VALife) program or keep your S-DVI coverage. If you apply for VALife before 31 December 2025, you can keep your S-DVI during the 2-year waiting period for VALife benefits. However, you must pay premiums for both policies during this time. If you apply for VALife on or after 1 January 2026, your S-DVI will end when your VALife application is approved, and you will only need to pay VALife premiums during the 2-year waiting period. 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.
The premium rates for S-DVI plans depend on the amount of insurance, the coverage plan, and whether you pay monthly or annually. In some cases, a premium waiver is available for Veterans who are totally disabled.
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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 changes such as installing ramps or widening doorways.
- Hold the title of 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 terminate. 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, the 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 determined by several factors, including the current mortgage loan balance, the remaining number of mortgage payments, and the required VMLI coverage amount. A VMLI Premium Calculator is available to help estimate the premium. To maintain VMLI coverage, veterans must notify the Department of Veterans Affairs of any changes to their mortgage, such as transferring lenders, refinancing, or making other adjustments.
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Servicemembers' Group Life Insurance (SGLI)
You can always make changes to the amount of your SGLI coverage or change your beneficiary (the person who gets the money if you die) by using the SGLI Online Enrollment System (SOES), which is available on the Defense Manpower Data Center website. You can reduce the insurance by $50,000 increments or cancel it entirely.
SGLI costs 6 cents per $1,000 of coverage. All SGLI participants must pay a $1 monthly charge for Traumatic Injury Protection (TSGLI), bringing the monthly premium to $31 for $500,000 worth of coverage. TSGLI provides protection against loss due to traumatic injuries and is designed to provide financial assistance to members so their loved ones can be with them during their recovery from their injuries. The coverage ranges from $25,000 to $100,000 depending on the nature of the injury.
When you get out of the military, your SGLI will stay in effect for 120 days after your discharge. After you get out, you can convert your SGLI to VGLI (Veterans' Group Life Insurance), a similar program, if you wish.
Family Servicemembers' Group Life Insurance (FSGLI) is a component of the SGLI program. It provides coverage for spouses and children of Servicemembers insured under SGLI. Non-military spouses are covered automatically for $100,000 or the amount of the member's coverage, whichever is less. Military spouses must apply for the coverage. Premiums for spouse coverage are based on the spouse's age and amount of coverage. Dependent children are covered for $10,000 each at no cost to the member.
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Family Servicemembers' Group Life Insurance (FSGLI)
To qualify for this benefit program, you must be the spouse or dependent child of a Servicemember (Active Duty or Ready Reserve) who has full-time SGLI coverage. A "dependent child" includes any unmarried child in one of the following categories:
- A natural child of the Servicemember
- A legally adopted child
- A stepchild who is a member of the Servicemember's household
- A child between the ages of 18 and 23 who is a full-time student, or a child who became permanently incapable of self-support before age 18
If you are covered under full-time SGLI and your spouse is not automatically covered, use the SGLI Online Enrollment System (SOES) to apply for coverage for them.
If you are the civilian spouse of a service member signed up for full-time SGLI, you will be automatically insured under FSGLI. In this case, the premium will be automatically deducted from your service member's pay. If you are a military spouse married on or after January 2, 2013, you will not be automatically covered. Your service member will need to sign you up online through the SOES.
Your service member will pay a premium for your coverage, which will increase as you age. Coverage for spouses can be up to a maximum of $100,000, not exceeding the service member's SGLI coverage.
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