Va Life Insurance: Is It Worth The Cost?

Veterans Affairs Life Insurance (VALife) is a whole life insurance program that offers cash value and competitive premium rates to service-connected veterans aged 80 and under. The program provides up to $40,000 in coverage, available in $10,000 increments, with no medical exams or health questions for enrollment. VALife is guaranteed acceptance whole life insurance, meaning that veterans who meet the eligibility requirements will automatically be approved without having to prove they are in good health. While VALife offers low-cost coverage, some veterans have criticized the program for its high premiums, especially for older veterans, and limited coverage compared to private sector insurance plans.

VALife vs. other insurance programs

Veterans Affairs Life Insurance (VALife) is a whole life insurance program that offers cash value and competitive premium rates. It is available to veterans with service-connected disabilities who are 80 or younger. VALife offers up to $40,000 in coverage, with no medical exams or health questions required for enrollment. The policy has a cash value that increases over time after the first two years of enrollment.

Compared to similar private sector programs, VALife offers greater maximum coverage at a lower cost per $1,000. Additionally, VALife premiums are based solely on age and coverage amount, whereas private sector premiums often factor in current medical conditions and gender.

VALife is a guaranteed acceptance whole life insurance policy, meaning that veterans who meet the eligibility requirements will automatically be approved without having to prove they are in good health. This sets it apart from other insurance programs that may deny coverage based on health conditions.

However, some veterans may find that term life insurance policies offered by their employers or other providers offer more coverage for a lower cost. It is important for veterans to carefully consider their options and choose the insurance program that best meets their needs and financial situation.

Veterans currently enrolled in Service-Disabled Veterans Life Insurance (S-DVI) have the option to keep their current coverage or switch to VALife. Those enrolled in Veterans' Group Life Insurance (VGLI) or Veterans' Mortgage Life Insurance (VMLI) can have concurrent coverage with VALife.

Eligibility and enrolment

Veterans Affairs Life Insurance (VALife) is a whole life insurance program that offers cash value and competitive premium rates. It is available to veterans with service-connected disabilities who are aged 80 or younger.

Eligibility

Veterans aged 80 or under with any level of service-connected disability (0-100%) are eligible to apply for VALife at any time.

Veterans aged 81 or older may also apply for VALife within two years of receiving notification of a new service-connected disability if they:

• Applied for a new VA-rated disability before turning 81, and
• Received a new service-connected disability rating after turning 81.

Enrolment

The VALife application process is completely online, and veterans will receive an automated instant decision about their eligibility for the program. If accepted, veterans can enroll and manage most aspects of their VALife policy online.

Veterans must pay premiums during the two-year waiting period for their coverage to take effect. If the veteran dies during this period, all premiums paid, plus interest, will be paid to their designated beneficiary. The full face value of the policy will be paid to the beneficiary after the two-year period.

Veterans who pay premiums directly, rather than by deduction from their compensation, military retirement, or checking account, have the option to pay premiums annually.

Coverage and benefits

Veterans Affairs Life Insurance (VALife) is a whole life insurance program that offers cash value and competitive premium rates. It is available to veterans with service-connected disabilities who are aged 80 or younger. VALife offers up to $40,000 in coverage, available in $10,000 increments. There are no medical exams or health questions for enrollment. The policy has a cash value that builds over time after the first two years of enrollment.

The premium rates for VALife are based on age and the amount of coverage selected. Current medical conditions or gender are not factored into premium rates. Once enrolled, premiums will never increase for the coverage selected. If coverage is increased, rates will be based on age at that time.

VALife is guaranteed acceptance whole life insurance. This means that if veterans meet the eligibility requirements, their application will automatically be approved. They won't need to prove they're in good health. They can keep their coverage for the rest of their lives.

Veterans must pay premiums during the two-year waiting period. If the veteran dies during this period, all premiums paid plus interest will be paid to their designated beneficiary. The full face value of the policy will be paid to the beneficiary after the two-year period.

VALife's maximum coverage of $40,000 is greater than what's offered by many similar guaranteed acceptance whole life insurance programs in the private sector. The cost per $1,000 is very competitive or less than similar products, providing savings to veterans.

Veterans currently enrolled in Service-Disabled Veterans Life Insurance (S-DVI) may either keep that coverage or switch to VALife. If they have S-DVI and submit their VALife application by December 31, 2025, they may keep their S-DVI coverage for two years. When this period concludes, their S-DVI coverage ends, and the full VALife coverage amount takes effect. Any cash value from their S-DVI coverage will be paid to them or can be applied toward their VALife premiums.

If they have S-DVI and submit their VALife application on or after January 1, 2026, their S-DVI coverage ends on the day they enroll in VALife. However, they will still need to wait two years before their full VALife coverage amount takes effect.

Premium rates

The premium rates for VALife: Veterans Affairs Life Insurance, the VA's newest whole life insurance program, are based on age and the amount of coverage selected. The rates are competitive or better than similar programs offered by the private sector. The cost per $1,000 is very competitive or less than similar products, providing savings to veterans.

Veterans aged 80 or under with any level of service-connected disability (0-100%) are eligible to apply at any time. Veterans aged 81 or older may also apply for VALife within two years of receiving notification of a new service-connected disability if they applied for a new VA-rated disability before turning 81 and received a new service-connected disability after turning 81.

The monthly premium rates for VALife vary depending on the age of the applicant and the desired coverage amount. For example, an 18-year-old veteran opting for $10,000 in coverage would pay a monthly premium of $10.90, while a 30-year-old veteran with the same coverage amount would pay $15.40 per month. The rates increase with age, with an 80-year-old veteran paying $127.50 for $10,000 in coverage.

Veterans can also choose to pay their VALife premiums annually, which may result in a slight discount compared to paying monthly. The yearly premium rate for an 18-year-old veteran with $10,000 in coverage is $129.30, while a 30-year-old veteran with the same coverage amount would pay $182.70. Again, the rates increase with age, and an 80-year-old veteran with $10,000 in coverage would pay a yearly premium of $1512.80.

It is important to note that VALife does not offer premium waivers, and veterans must pay premiums during the two-year waiting period for benefits to take full effect. If a veteran passes away during this waiting period, their designated beneficiary will receive all premiums paid plus interest.

Switching from other VA insurance programs

Veterans Affairs Life Insurance (VALife) is a guaranteed acceptance whole life insurance policy for veterans with service-connected disabilities. VALife offers up to $40,000 in coverage in $10,000 increments, with premiums depending on the age of the veteran and the amount of coverage desired. There is no time limit to apply for VALife after receiving a disability rating, and coverage can be kept for life.

If you already have Service-Disabled Veterans Life Insurance (S-DVI), you have two options: you can either apply for VALife now or keep your S-DVI policy. If you apply for VALife by December 31, 2025, you can keep your S-DVI during the 2-year waiting period for VALife benefits. However, if you apply on or after January 1, 2026, your S-DVI will end when your VALife application is approved, and you will only have VALife coverage during the waiting period.

It is important to note that VALife does not offer premium waivers or loans. The premiums must be paid during the 2-year waiting period for benefits to start, and the coverage amount will be paid out to beneficiaries only after this period. If the insured dies during the waiting period, the total amount paid in premiums, plus interest, will be paid out instead.

Frequently asked questions