Life Insurance: Leaving Va, What's Next?

Veterans Affairs Life Insurance (VALife) is a guaranteed acceptance whole life insurance program for service-connected veterans aged 80 and under. It provides up to $40,000 in coverage, with lesser amounts available in $10,000 increments. The coverage takes effect two years after enrollment, as long as premiums are paid during the two-year period. VALife is one of several insurance options for veterans transitioning out of service, including Veterans' Group Life Insurance (VGLI), which allows veterans to keep their life insurance coverage after leaving the military by continuing to pay premiums. VGLI is available to those who had SGLI while in the military and are within 1 year and 120 days of being released from active duty. It offers between $10,000 and $500,000 in term life insurance benefits, based on the SGLI coverage amount when leaving the military.

Eligibility requirements for VALife

Veterans Affairs Life Insurance (VALife) is a program that provides low-cost coverage to veterans with service-connected disabilities. Here are the eligibility requirements for VALife:

If you are age 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 age 81 or older:

You may be eligible for VALife if you meet the following requirements:

• Before turning 81 years old, you applied for VA disability compensation for a service-connected disability.
• After turning 81, you received a rating for the same disability.
• You apply for VALife within 2 years of getting the notification of your disability rating.

It is important to note that VALife is guaranteed acceptance whole life insurance. This means that if you meet the eligibility requirements, your application will be automatically approved, and you won't need to prove you are in good health. You can keep your coverage for the rest of your life.

Applying for VALife

Veterans Affairs Life Insurance (VALife) is a guaranteed acceptance whole life insurance program for service-connected veterans aged 80 and under. It provides up to $40,000 in coverage, with lesser amounts available in increments of $10,000. The coverage takes effect two years after enrollment as long as premiums are paid during the two-year period.

To apply for VALife, you must meet the following eligibility criteria:

• You are aged 80 or younger and 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.
• You are aged 81 or older and 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.

Once you have confirmed your eligibility, you can apply for VALife by checking your eligibility and applying online. You will need to submit your first premium payment when you apply. The premium amount depends on your age when you apply and the amount of coverage you want. It is important to note that VALife doesn't offer premium waivers or loans.

After your application is approved, you will be notified by email or text, and you can access your policy through the VA life insurance portal. Your full life insurance coverage starts two years after you apply, and you must continue to pay the premiums during those two years. If you pass away during this two-year waiting period, your beneficiaries will receive the total amount you paid in premiums, plus interest. If you pass away after the waiting period, your beneficiaries will receive the full coverage amount of your policy.

Premium rates for VALife

The premium rates for VALife depend on the age of the applicant and the amount of coverage they want. The older the applicant, the higher the premium rate. The premium rate also increases with the amount of coverage. For example, an 18-year-old applicant would pay a monthly premium rate of $10.90 for $10,000 coverage, $21.80 for $20,000 coverage, $32.70 for $30,000 coverage, and $43.60 for $40,000 coverage. On the other hand, a 95-year-old applicant would pay a monthly premium rate of $442.00 for $10,000 coverage, $884.00 for $20,000 coverage, $1,326.00 for $30,000 coverage, and $1,768.00 for $40,000 coverage.

The premium rates for VALife are also available for yearly payments. The same trend can be observed, with premium rates increasing with the age of the applicant and the amount of coverage. An 18-year-old applicant would pay a yearly premium rate of $129.30 for $10,000 coverage, $258.60 for $20,000 coverage, $387.90 for $30,000 coverage, and $517.20 for $40,000 coverage. Meanwhile, a 95-year-old applicant would pay a yearly premium rate of $3,370.00 for $10,000 coverage, $6,740.00 for $20,000 coverage, $10,110.00 for $30,000 coverage, and $13,480.00 for $40,000 coverage.

It is important to note that the premium rates for VALife do not increase if the applicant keeps their policy. Additionally, if more than six months have passed since the applicant's last birthday, they are considered one year older when determining their premium rate. For instance, if an applicant is 59 years old and six months old, they will be charged the rate for a 60-year-old.

Benefits of VALife

Veterans Affairs Life Insurance (VALife) is a guaranteed acceptance whole life insurance program for service-connected veterans aged 80 and under. VALife provides low-cost coverage to veterans with service-connected disabilities. Here are some of the benefits of VALife:

Guaranteed Acceptance

VALife offers guaranteed acceptance for eligible veterans. If you meet the eligibility requirements, your application will be automatically approved, and you won't need to prove that you're in good health. This makes it easier for veterans with service-connected disabilities to obtain life insurance coverage.

Whole Life Insurance Coverage

VALife provides whole life insurance coverage, which means that the policy remains in force for the insured's entire life, provided that premiums are paid. Whole life insurance builds cash value over time and offers permanent protection, making it ideal for long-term financial planning.

Coverage Amount

VALife offers up to $40,000 in whole life insurance coverage, with lesser amounts available in increments of $10,000. This flexibility allows veterans to choose the coverage amount that best suits their needs and budget.

No Time Limit to Apply

There is no time limit to apply for VALife after receiving a disability rating. This means that eligible veterans can apply for coverage at any time, regardless of how long it has been since their disability rating was assigned.

Fixed Premium Rates

With VALife, your premium rate will never increase as long as you keep your policy. This provides stability and predictability for veterans, as they know their life insurance costs will not suddenly increase over time.

Beneficiary Protection

VALife ensures that your beneficiaries receive financial support in the event of your death. If you pass away during the two-year waiting period, your beneficiaries will receive the total amount of premiums paid, plus interest. If you die after the waiting period, your beneficiaries will receive the full coverage amount of your policy.

Converting SGLI to VGLI

Veterans' Group Life Insurance (VGLI) allows you to keep your life insurance coverage after leaving the military, provided you continue to pay the premiums. To be eligible for VGLI, you must meet at least one of the following requirements:

• You had Servicemembers' Group Life Insurance (SGLI) while in the military and are 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).
• 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 for standard premium insurance rates.

If you are eligible for VGLI, you can receive between $10,000 and $500,000 in term life insurance benefits, based on your SGLI coverage when you left the military. To receive these benefits, you must apply for VGLI within 1 year and 120 days of leaving the military. If you sign up within 240 days, you won't need to prove you are in good health. After this period, you will need to submit evidence of good health.

You can apply for VGLI in the following ways:

• Online through the Office of Servicemembers' Group Life Insurance (OSGLI) using the Prudential website.
• By mail or fax by filling out the Application for Veterans' Group Life Insurance (SGLV 8714).

To convert your VGLI coverage to an individual insurance policy, follow these steps:

• Choose a new insurance company from the list of participating companies.
• Apply at the local sales office of your chosen company.
• Obtain a letter from OSGLI verifying your coverage (VGLI Conversion Notice).
• Provide a copy of the notice to the agent taking your application.

Please note that the conversion policy must be a permanent policy, such as a whole life policy. You cannot convert to other types of policies, such as term, variable life, or universal life insurance. Additionally, supplementary policy benefits such as Accidental Death and Dismemberment or Waiver of Premium for Disability are not included in the conversion policy.

Frequently asked questions