Introduction
Life insurance provides essential financial security for your loved ones in the event of your passing. For veterans who have served in the United States military, the Department of Veterans Affairs (VA) offers specialized life insurance programs designed to address the unique needs and circumstances that veterans and their families face. These programs aim to provide accessible, affordable coverage, particularly for those who might encounter challenges obtaining private insurance due to service-connected health conditions.
This comprehensive guide examines the primary VA life insurance programs available in 2025, with particular focus on Veterans Affairs Life Insurance (VALife), Veterans’ Group Life Insurance (VGLI), and the legacy Service-Disabled Veterans Insurance (S-DVI) program. We’ll explore eligibility requirements, coverage options, premium costs, and help you understand which program might best suit your needs.
Overview of VA Life Insurance Programs
The VA administers several life insurance programs, each designed for different stages of military service or veteran status:
- Veterans Affairs Life Insurance (VALife): A guaranteed acceptance whole life insurance program for veterans with service-connected disabilities.
- Veterans’ Group Life Insurance (VGLI): Renewable term life insurance for veterans who had SGLI and wish to continue coverage after separation.
- Service-Disabled Veterans Insurance (S-DVI): A legacy program closed to new enrollments as of December 31, 2022, but continuing to serve existing policyholders.
- Servicemembers’ Group Life Insurance (SGLI): Low-cost term life insurance for active-duty service members and eligible personnel.
- Family Servicemembers’ Group Life Insurance (FSGLI): Coverage for spouses and dependent children of service members with SGLI.
- SGLI Traumatic Injury Protection Program (TSGLI): Financial support for service members who suffer a traumatic injury.
- Veterans’ Mortgage Life Insurance (VMLI): Mortgage protection insurance for veterans with severe service-connected disabilities who have adapted housing grants.
Let’s examine the three main individual coverage options for veterans in detail.
Veterans Affairs Life Insurance (VALife)
Introduced on January 1, 2023, VALife is the VA’s newest life insurance program and represents a significant advancement for veterans with service-connected disabilities.
Eligibility
You’re eligible for VALife if:
- You’re age 80 or younger with a VA service-connected disability rating (even if your rating is 0%)
- There’s no time limit to apply after receiving your disability rating
If you’re 81 or older, you may still be eligible if:
- You applied for VA disability compensation before turning 81
- After turning 81, you received a rating for that same disability
- You apply for VALife within 2 years of receiving notification of your disability rating
Coverage and Benefits
- Coverage Amount: Up to $40,000 in whole life insurance (available in $10,000 increments)
- Guaranteed Acceptance: If you meet eligibility requirements, your application will be automatically approved without health questions or medical exam
- Fixed Premiums: Your premium rate is locked in at the age you apply and will never increase
- Cash Value: Begins to accumulate 2 years after policy approval
- Waiting Period: Full coverage starts 2 years after enrollment (you must pay premiums during this waiting period)
If you pass away during the 2-year waiting period, your beneficiaries will receive all premiums paid plus interest (3.59% interest rate for deaths in 2025). After the waiting period, beneficiaries receive the full coverage amount.
Premium Rates
VALife premiums are based on your “insurance age” at enrollment and remain fixed for life. Your insurance age is typically your current age unless more than six months have passed since your last birthday, in which case you’re considered one year older for premium calculation.
Sample Monthly Premium Rates for $40,000 of VALife Coverage (2025):
| Age at Application | Monthly Premium |
|---|---|
| 30 | $61.60 |
| 40 | $88.00 |
| 50 | $130.00 |
| 60 | $200.00 |
| 70 | $312.00 |
| 80 | $510.00 |
For complete premium tables for all age ranges and coverage amounts, visit the official VA website.
Key Features and Limitations
- No Premium Waivers: VALife does not offer waivers for premiums.
- No Loans: Unlike some whole life policies, VALife does not offer policy loans.
- Payment Options: Premiums can be paid monthly or annually (with a 2.5% discount for annual payments).
- Payment Methods: Options include deduction from VA compensation or pension, allotment from military retirement pay, automatic bank deduction, or direct payment online.
Veterans’ Group Life Insurance (VGLI)
VGLI allows veterans who had Servicemembers’ Group Life Insurance (SGLI) to continue life insurance coverage after separation from military service.
Eligibility
You may be eligible for VGLI if at least one of these is true:
- You had SGLI while in the military and you’re within 1 year and 120 days of release from active duty of 31+ days
- You’re within 1 year and 120 days of retiring/release from Ready Reserve or National Guard
- You’re within 1 year and 120 days of assignment to Individual Ready Reserve or Inactive National Guard
- You’re within 1 year and 120 days of being placed on the Temporary Disability Retirement List
- You had part-time SGLI as a member of the National Guard/Reserve and suffered a service-related injury/disability that disqualified you for standard premium rates
Coverage and Application Timeline
- Coverage Amount: Between $10,000 and $500,000 (based on how much SGLI coverage you had when leaving the military)
- Application Deadline: Must apply within 1 year and 120 days of leaving the military
- Health Requirements:
- No proof of good health needed if applying within 240 days of separation
- Proof of good health required if applying after the 240-day period
- Coverage Increases: Veterans under age 60 with VGLI can increase coverage by $25,000 every five years during guaranteed “buy-up” periods without providing proof of good health
Premium Structure
Unlike VALife, VGLI premiums increase as you age. Rates are based on your current age and coverage amount, making VGLI more affordable initially but potentially more expensive in later years.
Sample Monthly Premium Rates for $100,000 of VGLI Coverage (2025):
| Age Band | Monthly Premium |
|---|---|
| 29 and under | $7.00 |
| 30-34 | $9.00 |
| 35-39 | $12.00 |
| 40-44 | $16.00 |
| 50-54 | $33.00 |
| 60-64 | $99.00 |
| 70-74 | $226.00 |
| 80 & Over | $450.00 |
For the most current and complete rate information, visit the VA’s VGLI premium rate page.
Key Features and Limitations
- Term Life Insurance: VGLI is a term policy, meaning it doesn’t build cash value.
- Renewable for Life: Coverage continues as long as premiums are paid.
- Conversion Option: You can convert VGLI to an individual permanent policy with a participating private insurance company at any time without proof of good health.
Service-Disabled Veterans Insurance (S-DVI) – Legacy Program
S-DVI was previously the primary life insurance program for veterans with service-connected disabilities. As of December 31, 2022, this program is closed to new applications, but veterans with existing S-DVI policies can maintain their coverage.
Current Status
- Closed to New Applications: No new S-DVI policies can be issued.
- Existing Policyholders: Veterans who already hold S-DVI policies can keep their coverage.
Coverage
- Basic Coverage: Up to $10,000 in insurance coverage.
- Supplemental Coverage: An additional $30,000 was available to those eligible for a premium waiver due to total disability.
Premium Waivers
A key feature of basic S-DVI policies is the potential premium waiver for veterans who become totally disabled (unable to work) before age 65 for at least six consecutive months. This waiver applies only to the basic $10,000 coverage, not supplemental coverage.
Transitioning from S-DVI to VALife
Veterans with existing S-DVI policies have the option to keep their S-DVI or apply for VALife, but there are specific rules:
- If applying for VALife by December 31, 2025: You can keep your S-DVI (including any premium waiver) during the two-year waiting period for VALife. Both premiums must be paid during this time. Your S-DVI policy ends when full VALife coverage begins.
- If applying for VALife on or after January 1, 2026: Your S-DVI policy (including any premium waiver) ends on the day your VALife application is approved. You pay only VALife premiums but do not have full coverage during the two-year waiting period.
Comparison of VALife, VGLI, and S-DVI
Understanding the differences between these programs can help you make an informed decision about your life insurance needs.
| Feature | VALife | VGLI | S-DVI (Legacy) |
|---|---|---|---|
| Status | Open to eligible veterans | Open to eligible separating service members | Closed to new applications (after 12/31/2022) |
| Type of Insurance | Guaranteed Acceptance Whole Life | Renewable Term Life | Various permanent plan options |
| Eligibility | Service-connected disability (any level), generally age 80 and under | Had SGLI, apply within time limit after separation | Service-connected disability, applied by deadline |
| Medical Requirements | No health questions or exams | None if applying within 240 days; required after | Required proof of good health except for service-connected conditions |
| Maximum Coverage | $40,000 | $500,000 | $10,000 basic; $30,000 supplemental (with waiver) |
| Premium Structure | Fixed for life, based on age at enrollment | Increases with age | Based on age and plan, fixed for life |
| Cash Value | Builds after 2 years | No | Builds (for permanent plans) |
| Premium Waiver | No | No | Yes (for basic $10k for total disability) |
| Application Deadline | No deadline for those 80 and under | 1 year and 120 days from separation | Closed (was 2 years from rating) |
Premium Cost Comparison at Milestone Ages
Premium costs are a significant factor when choosing a life insurance policy. Both VALife and VGLI are influenced by age, but their premium structures differ substantially.
VALife vs. VGLI Monthly Premium Comparison for $40,000 Coverage
| Age | VALife ($40,000) | VGLI ($40,000)* |
|---|---|---|
| 30 | $61.60 (fixed for life) | $3.60 (increases with age) |
| 40 | $88.00 (fixed for life) | $6.40 (increases with age) |
| 50 | $130.00 (fixed for life) | $13.20 (increases with age) |
| 60 | $200.00 (fixed for life) | $39.60 (increases with age) |
| 70 | $312.00 (fixed for life) | $90.40 (increases with age) |
| 80 | $510.00 (fixed for life) | $180.00 (increases with age) |
*VGLI rates calculated at $10,000 increments from the VA’s rate chart.
Key Premium Considerations
- VALife has higher initial premiums but they remain fixed for life
- VGLI starts with much lower premiums that increase substantially with age
- For younger veterans expecting a long life, VALife may cost less over the lifetime
- For older veterans or those with health issues, VGLI may become costly in later years
- VALife’s guaranteed acceptance is valuable for those with health conditions who might be denied or charged high rates for private insurance
Comparison to Civilian Term-Life Insurance
When comparing VA life insurance to civilian options, several factors come into play:
- Guaranteed Acceptance: VALife’s guaranteed acceptance for veterans with service-connected disabilities is its most valuable feature, as private insurers typically require medical underwriting.
- Premium Rates: Standard civilian term life insurance for healthy individuals is generally less expensive than VALife, especially for younger people seeking higher coverage amounts. However, for veterans with health conditions, VALife may be more affordable than private options.
- Coverage Amounts: VGLI offers up to $500,000 in coverage, comparable to many civilian term policies, while VALife’s $40,000 maximum is lower than typical civilian policies.
- Premium Structure: Many civilian term policies have level premiums for 10, 20, or 30 years, then increase significantly, while VGLI increases gradually with age and VALife remains fixed for life.
- Renewability: VGLI is renewable for life without proof of good health, a feature not always available with civilian term policies.
For many service-connected veterans, the primary benefit of VALife is not necessarily the lowest premium compared to standard private insurance, but the ability to obtain coverage at all or at a reasonable fixed rate despite health conditions.
Managing Your VA Life Insurance Policy
Applying for Coverage
- VALife: Apply online through the VALife online application portal
- VGLI: Apply through the Office of Servicemembers’ Group Life Insurance (OSGLI) via the Prudential website or by mail
Making Changes to Your Policy
Veterans can access and manage their policies online through the VA’s life insurance portals:
- Update beneficiary information
- Change payment methods
- Access policy documents
- Check premium due dates
Filing a Claim
The claim process is designed to be straightforward for beneficiaries:
- VALife: Beneficiaries submit VA Form 29-4125 (Claim for One Sum Payment) through DocuSign, upload online, or mail to the VA Insurance Center
- VGLI: Beneficiaries submit SGLV 8283 (Claim for Death Benefits) to the Office of Servicemembers’ Group Life Insurance
The average processing time for death claims is 2-5 business days once all required documentation is received.
Conclusion: Choosing the Right VA Life Insurance Program
When selecting the VA life insurance program that best meets your needs, consider these factors:
Choose VALife if:
- You have a service-connected disability
- You want guaranteed acceptance regardless of health condition
- You prefer premiums that never increase
- You want a policy that builds cash value
- You’re concerned about being able to qualify for private insurance
Choose VGLI if:
- You recently separated from service and had SGLI
- You need higher coverage amounts (up to $500,000)
- You’re relatively young and healthy and want lower initial premiums
- You want the option to convert to a permanent policy later
Stay with S-DVI if:
- You already have an S-DVI policy with a premium waiver due to total disability
- Your S-DVI policy is paid-up
- You prefer your existing S-DVI coverage and premium structure
VA life insurance programs provide crucial financial protection for veterans and their families. By understanding the features, benefits, and limitations of each program, you can make an informed decision that provides security for your loved ones while accommodating your budget and specific circumstances.
For personalized assistance with VA life insurance, contact the VA Insurance Center at 1-800-669-8477 or consult with a Veterans Service Organization (VSO) representative who can guide you through the options available to you.
