{"id":163578,"date":"2023-10-19T08:29:48","date_gmt":"2023-10-19T08:29:48","guid":{"rendered":"https:\/\/businessyield.com\/?p=163578"},"modified":"2023-10-19T08:29:50","modified_gmt":"2023-10-19T08:29:50","slug":"veterans-life-insurance","status":"publish","type":"post","link":"https:\/\/businessyield.com\/insurance\/veterans-life-insurance\/","title":{"rendered":"Veterans Life Insurance: Your Ultimate Guide","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"

The Department of Veterans Affairs (VA) provides veterans with service-connected disabilities with veterans’ life insurance (VALife), which is a valuable benefit. If you are a veteran with a service-connected disability, I encourage you to learn more about VALife. It may be the right life insurance option for you and your loved ones.<\/p>

In this blog post, we will cover everything you need to know about VALife. We will also provide tips for veterans considering VALife and answer some of the most common questions about VALife. Whether you are just starting to learn about VALife or you are ready to apply, this blog post is the perfect resource for you. Read on to learn everything you need to know about veterans’ life insurance.<\/p>

Veterans Life Insurance<\/strong><\/span><\/h2>

Veterans life insurance is a life insurance policy specifically designed for veterans of the military. The U.S. Department of Veterans Affairs (VA) frequently offers these policies as a part of the VA’s insurance program. VGLI is a VA program that allows veterans to convert their Servicemembers’ Group Life Insurance (SGLI) coverage to civilian life insurance after service. It offers lifetime renewable term coverage, a conversion option, and death benefits based on the veteran’s SGLI coverage.<\/p>

These options include:<\/p>

#1. Servicemembers’ Group Life Insurance (SGLI)<\/strong><\/span><\/h3>

SGLI offers low-cost term life insurance to active duty service members, the National Guard and Reserves, and the Commissioned Corps of NOAA and PHS. Members are automatically enrolled, providing coverage up to $400,000. However, coverage ends after retirement or service separation.<\/p>

#2. Veterans’ Group Life Insurance (VGLI)<\/strong><\/span><\/h3>

VGLI is a life insurance program that allows veterans to convert their full-time SGLI coverage to lifetime renewable term insurance after separation from service. It provides coverage up to the amount of SGLI the veteran had in force at the time of separation.<\/p>

#3. Veterans’ Mortgage Life Insurance (VMLI)<\/strong><\/span><\/h3>

VMLI provides mortgage life insurance protection to disabled veterans who have been approved for a VA Specially Adapted Housing (SAH) grant. It is available to veterans who received an SAH grant, have title to the home, and have a mortgage on the home.<\/p>

#4. Veterans Affairs Life Insurance (VALife)<\/strong><\/span><\/h3>

\u00a0VALife provides low-cost coverage to veterans with service-connected disabilities. Eligibility for VALife depends on factors such as age and disability rating. It offers whole-life coverage of up to $40,000, with lesser amounts available in increments of $10,000. The elected coverage takes effect two years after enrollment, as long as premiums are paid during the two years<\/p>

#5. Service-Disabled Veterans Insurance (S-DVI)<\/strong><\/span><\/h3>

S-DVI provides life insurance coverage to veterans who have been given a VA rating for a new service-connected disability in the last two years. It offers guaranteed acceptance of whole-life coverage of up to $40,000, with lesser amounts available in increments of $10,000.<\/p>

Veterans’ Life Insurance Group<\/strong><\/span><\/h2>

The Department of Veterans Affairs (VA) provides Veterans’ Group Life Insurance (VGLI), a life insurance program that enables veterans to convert their Servicemembers’ Group (SGLI) coverage to a civilian program of lifetime renewable term coverage after separation from service.<\/p>

Features <\/strong><\/span><\/h2>

#1. Eligibility for VGLI<\/strong><\/span><\/h3>

To qualify for VGLI, veterans must meet two criteria: have part-time SGLI as a member of the National Guard or Reserve, have suffered an injury or disability that disqualified them for standard premium insurance rates, or have SGLI while in the military and be within one year and 120 days of being released from an active-duty period of 31 or more days.<\/p>

#2. Lifetime Renewable Term Coverage<\/strong><\/span><\/h3>

VGLI offers lifetime renewable term coverage, which means veterans can keep their coverage as long as they continue to pay the premiums.<\/p>

#3. Conversion Option<\/strong><\/span><\/h3>

VGLI allows veterans to convert their SGLI coverage to VGLI within a specified time frame after separation from service. This provides veterans with the opportunity to continue their life insurance coverage without the need for a medical examination or providing evidence of good health.<\/p>

#4. Death Benefits<\/strong><\/span><\/h3>

VGLI provides death benefits to the designated beneficiaries upon the death of the insured veteran. The amount of coverage is based on the amount of SGLI the veteran had at the time of separation.<\/p>

#5. No Cash Value<\/strong><\/span><\/h3>

VGLI is a term life insurance program that provides death benefits only. No cash value component builds over time.<\/p>

#6. Flexibility in Coverage Amount<\/strong><\/span><\/h3>

Veterans have the flexibility to choose the amount of coverage they want under VGLI, up to the maximum amount available based on their SGLI coverage at the time of separation.<\/p>

#7.  Portability<\/strong><\/span><\/h3>

VGLI is portable, meaning veterans can maintain their coverage even if they change jobs or leave the military. This provides veterans with continued life insurance protection regardless of their employment status.<\/p>

#8. No War or Terrorism Exclusions<\/strong><\/span><\/h3>

VGLI coverage does not exclude death resulting from war or acts of terrorism. This provides veterans with peace of mind knowing that their coverage remains in effect regardless of the circumstances of their death.<\/p>

#9. Convenient Premium Payments<\/strong><\/span><\/h3>

VGLI premiums can be paid through convenient methods such as automatic bank deductions or credit card payments. This makes it easier for veterans to manage their premium payments.<\/p>

#10. Coverage for Spouses and Children<\/strong><\/span><\/h3>

VGLI also offers the option to add coverage for spouses and dependent children. This allows veterans to extend life insurance protection to their family members, ensuring their financial security in the event of the veteran’s death.<\/p>

Disabled Veterans Life Insurance<\/strong><\/span><\/h2>

Service-Disabled Veterans Life Insurance (S-DVI) is a life insurance program specifically designed for veterans who have received a service-connected disability rating from the Department of Veterans Affairs (VA). However, as of December 31, 2022, S-DVI stopped accepting new applications, instead, a new program called Veterans Affairs Life Insurance (VALife) was introduced on January 1, 2023, to provide low-cost coverage to veterans with service-connected disabilities <\/p>

Features of VA Life<\/strong><\/span><\/h2>

#1. Eligibility<\/strong><\/span><\/h3>

Veterans aged 80 or younger with a VA service-connected disability rating, even if the rating is 0%, are eligible for VALife. There is no time limit to apply after receiving the disability rating. Veterans aged 81 or older may also be eligible if they applied for VA disability compensation before turning 81 and received a service-connected disability rating after turning 81, as long as they apply for VALife within two years of receiving the rating.<\/p>

#2. No Medical Requirements<\/strong><\/span><\/h3>

VALife does not require veterans to meet any health requirements to obtain coverage. This means that veterans can secure life insurance coverage without undergoing a medical examination or answering health-related questions.<\/p>

#3. Coverage Amount<\/strong><\/span><\/h3>

VALife offers coverage up to $40,000, available in $10,000 increments The coverage amount can be chosen based on the individual needs and preferences of the veteran.<\/p>

#4. Premiums<\/strong><\/span><\/h3>

The premium rates for VALife vary based on factors such as the age of the veteran, the coverage amount, the coverage plan chosen, and the frequency of premium payments (monthly or yearly). It’s best to review the premium rates for VALife plans to understand the cost associated with the desired coverage.<\/p>

#5. Cash Value<\/strong><\/span><\/h3>

VALife policies have a cash value that builds over time after the first two years of enrollment. This means that the policy accumulates value, which can be accessed or borrowed against if needed.<\/p>

#6. Guaranteed Acceptance<\/strong><\/span><\/h3>

VALife is a guaranteed acceptance whole life insurance program. This means that if you meet the eligibility requirements, your application will be automatically approved without having to prove your health status.<\/p>

#7. Beneficiary Updates<\/strong><\/span><\/h3>

You can update your beneficiary by completing VA Form 29-336, Designation of Beneficiary Government Life Insurance. There is a secure document upload portal available for submitting the form.<\/p>

#8. Claim Payout<\/strong><\/span><\/h3>

If you pass away within the two-year waiting period, the beneficiary will receive all the premiums paid plus interest. After the waiting period, the full coverage amount will be paid out as a claim.<\/p>

Best Veterans Life Insurance<\/strong><\/span><\/h2>

The best VA life insurance is tailored to their individual needs and preferences. Here are our top recommendations:<\/p>

#1. Prudential Veterans’ Group Life Insurance (VGLI)<\/strong><\/span><\/h3>

Prudential’s VGLI program enables veterans to keep their life insurance coverage after they leave the military. It provides coverage up to the amount of SGLI (Servicemembers’ Group Life Insurance) they had while in service. VGLI is often considered a good option for disabled veterans.<\/p>

#2. United Services Automobile Association (USAA)<\/strong><\/span><\/h3>

USAA is a well-known insurance provider that offers a range of insurance products, including life insurance. They have specific policies and benefits tailored to meet the needs of veterans and their families. USAA is often recognized for its excellent customer service and competitive rates.<\/p>

#3. American Armed Forces Mutual Aid Association (AAFMAA)<\/strong><\/span><\/h3>

AAFMAA is a non-profit, member-owned association that provides life insurance and financial solutions to military members and their families. They offer a variety of life insurance options, including whole-life policies, and are known for their commitment to serving the military community, particularly senior veterans.<\/p>

#4. Uniformed Services Benefit Association (USBA)<\/strong><\/span><\/h3>

USBA is another organization that specializes in providing life insurance coverage to military members and their families. They offer a range of policies, including coverage options for families. USBA is often recognized for its competitive rates and flexible coverage options.<\/p>

#5. New York Life<\/strong><\/span><\/h3>

New York Life is a reputable insurance company that offers life insurance policies to veterans. They provide a variety of coverage options and have a strong financial stability rating. New York Life is often considered a good option for veterans who are relatively young and healthy.<\/p>

#6. Aflac<\/strong><\/span><\/h3>

 Aflac offers life insurance options specifically designed to meet the needs of veterans. They provide a range of coverage options to ensure veterans and their loved ones are protected financially.<\/p>

#7. USBA (United States Beneficiary Association)<\/strong><\/span><\/h3>

USBA is a non-profit organization that offers a variety of life insurance options for veterans and their families. They provide both term and whole life insurance policies, with coverage amounts up to $1 million. USBA is known for its competitive rates and flexible coverage options.<\/p>

#8. Navy Mutual<\/strong><\/span><\/h3>

Navy Mutual is a mutual benefit association that focuses on providing life insurance coverage for members of the military, veterans, and their families. They offer term, whole, and universal life insurance policies with benefits ranging from $50,000 to $1 million. Navy Mutual is highly regarded for its commitment to serving the military community and providing personalized service.<\/p>

#9. Armed Forces Benefit Association (AFBA)<\/strong><\/span><\/h3>

AFBA is a non-profit organization that offers life insurance options for active duty, retired military, and veterans. They provide term life insurance policies with coverage amounts up to $500,000, as well as additional benefits such as accidental death and dismemberment coverage. AFBA is known for its competitive rates and excellent customer service.<\/p>

#10. TruStage Military Life Insurance<\/strong><\/span><\/h3>

TruStage offers life insurance options specifically designed for military members and veterans. They provide term life insurance policies with coverage amounts up to $250,000. TruStage is known for its simplified application process and competitive rates.<\/p>

Veterans Life Insurance Death Benefits<\/strong><\/span><\/h2>

Veterans life insurance provides death benefits to veterans, service members, and their families. These programs offer coverage amounts up to $400,000 and provide a lump-sum payment to designated beneficiaries upon the insured’s death. <\/p>

The Perks of Veterans’ Life Insurance Death Benefits<\/p>

#1. Tax-Free Death Benefit<\/strong><\/span><\/h3>

One of the significant advantages of veterans’ life insurance death benefits is that the death benefit paid to the beneficiary is generally tax-free. This means that the full amount of the benefit goes directly to the designated recipient without being subject to federal income tax.<\/p>