Until now many disabled Veterans have been unable to qualify for life insurance, but in January 2023, the VA launched a new life insurance program called Veterans Affairs Life Insurance (VALife), which provides guaranteed acceptance whole life insurance coverage to Veterans age 80 and under, with any level of service-connected disability (even a 0% rated disability). Some Veterans age 81 and older may also be eligible. VALife offers competitively priced life insurance coverage to more service-connected Veterans than ever before; it is expected to extend eligibility to millions of veterans.
What is Guaranteed Acceptance Whole Life Insurance?
Guaranteed acceptance is a whole life policy that does not require a medical exam or ask health questions. Whole life insurance provides coverage for the entire life of the individual policyholder, provided that premiums are always paid. Premium rates are locked in for the life of the policy, and unlike term policies, premium rates will not increase as the policyholder ages.
What Benefits Does Veterans Affairs Life Insurance Offer?
- All service-connected Veterans age 80 and under with 0-100% VA disability ratings are eligible.
- Fully automated online enrollment with instant approvals.
- Coverage comes in increments of $10,000, up to a maximum of $40,000, and premiums are competitive – or better – than what’s available in the private sector. There is a two-year waiting period for full face value coverage to take effect.
- No medical requirements for enrollment.
- Cash value that builds over the life of the policy after the first two years of enrollment.
- Rates are best the earlier you sign up. Once locked in, premiums will never increase.
Who is Eligible for VALife?
All Veterans age 80 or younger with a VA disability rating of 0-100% are eligible for VALife, with no time limit to apply. Veterans who are 81 or older may apply for VALife within two years of receiving a new service-connected disability rating if:
- They applied for VA disability compensation before age 81, and;
- They received a new service-connected disability rating after turning 81.
VALife doesn’t cover spouses or dependents of eligible Veterans.
What Does it Cost?
Your premium depends on your age when you apply and the amount of coverage you want, but is as low as about $11 per month for an 18-year-old with $10,000 of coverage or as high as $510 per month for an 80-year-old with $40,000 of coverage. .) You can look up what your premium rate would be by going online to https://www.benefits.va.gov/insurance/VALife.asp.
You can choose to pay the premium monthly or yearly. (There is a modest discount for paying annually
Premiums can be paid directly, or you can have them withheld from VA disability pay or military retirement pay. Your premium rate will never increase as long as you keep your VALife policy.
(If more than 6 months have passed since your last birthday, you are considered 1 year older when determining your premium rate. For example, if you’re 59 years and 6 months and 1 day old, you’ll pay the rate for age 60.)
When Will Your Benefits Start?
Your full life insurance coverage starts two years after you apply. You must pay the premiums during those two years.
Here’s what you need to know about the 2-year waiting period:
- If you die during the 2-year waiting period, we’ll pay your beneficiaries the total amount you paid in premiums, plus interest. Beneficiaries are the people you pick to get the money from your life insurance policy if you die.
- If you die after the 2-year waiting period, we’ll pay your beneficiaries the full coverage amount of your policy.
(This waiting period is a common feature of guaranteed acceptance whole life insurance programs.)
How do you apply?
Veterans have the option to apply online, where they may also receive instant decisions, make payments and receive beneficiary updates.
The application is available at https://www.benefits.va.gov/insurance/VALife.asp.
Where Can You Learn More About Veterans Affairs Life Insurance (VALife)?
To learn more about VALife and whether it’s the right choice for you and your family, visit the webpage here: https://www.benefits.va.gov/insurance/valife.asp.
In a press release, VA Secretary Denis McDonough said: "All Veterans deserve to know that their families will have financial support when they pass away. VALife is a critical step toward making that goal a reality, helping VA provide more life insurance to more Veterans than ever before in our nation's history."
Need a VA Disability Lawyer?
At Cuddigan Law in Omaha, NE, our VA disability lawyer has years of experience representing injured veterans from all over the United States. If you need to file a VA disability claim and don't know where to get started, you can try our VA Disability Calculator, fill out our online form, or give us a call at (402) 933-5405.
Remember, you don't just have to live in Nebraska to use our services. We are able to take cases from anywhere in the country and can set up a virtual consultation or phone screening at your convenience.
