VA will launch new life insurance program in January
Hometown Focus (Virginia, MN)
On January 1, 2023, the Department of Veterans Affairs will open enrollment for Veterans Affairs Life Insurance—the first new VA life insurance program for veterans in more than 50 years—extending VALife access to millions of veterans.
VALife will provide up to $40,000 of whole life insurance for all veterans, age 80 or under, with service-connected disabilities rated from 0 – 100 percent. Acceptance in the program is guaranteed, and no medical underwriting is required.
It will also allow veterans to complete their application online, receive instant decisions, and perform self-service functions, including electronic payments and beneficiary updates.
"All veterans deserve to know that their families will have financial support when they pass away," said VA Secretary Denis McDonough. "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."
VALife will increase Veteran access to life insurance in several ways:
There is no time limit to apply: VA's existing life insurance program for service-disabled veterans, Service-Disabled Veterans Insurance, required most veterans to apply for insurance within two years of receiving their disability rating. VALife has no such
time constraint for veterans aged 80 and under.
There is no health requirement to apply:
Under S-DVI, veterans had to be in good
health except for service-connected conditions. VALife has no medical evaluation tied
Veterans are eligible for more coverage
than before: Under S-DVI, most veterans
could only receive up to $10,000 of coverage. Under VALife, all veterans are eligible
for up to $40,000 of coverage.
VALife premium rates are competitive with, or better than, similar coverage available in the private sector, and $40,000 of coverage is more coverage than other like products offered. The policy will build cash value after the first two years of coverage when the face value goes into effect. If a veteran passes away during this two-year waiting period, the named beneficiary will receive all premiums paid plus interest. Unlike S-DVI, veterans will not be able to get a waiver for their premiums.
Veterans currently enrolled in S-DVI will have the option to keep their current coverage or switch to VALife. These veterans can apply for VALife at any time after January 1, 2023.