Female physician with white coat on with stethoscope around her neck sitting at table. In front of her are wooden blocks that spell out life insurance.

Does the VA Offer Life Insurance to Veterans?

VA Health Benefits
August 28, 2024•4 min read

Does the VA offer life insurance to Veterans?  If so, what types of life insurance policies are available?  Are these policies permanent (level premiums and face amount for life) or are they term insurance plans (increasing premiums with age)? 

The U.S. government does indeed offer several life insurance options for veterans, each designed to meet the unique needs of military personnel, veterans, and their families. These policies are usually term insurance plans which means at some point the monthly premiums charged to the Veteran will increase.  However, coverage is available and can be a God-send to service members and their families, especially when larger face amounts of coverage is required.  Here's a detailed look at the types of life insurance available:

  1. Servicemembers' Group Life Insurance (SGLI)

  • Eligibility: Active-duty members, reservists, National Guard members, cadets, and midshipmen.

  • Coverage: Up to $400,000 in increments of $50,000.

  • Premiums: Premiums are automatically deducted from the servicemember's pay. They are relatively low and based on the amount of coverage selected.

Features:

  • Traumatic Injury Protection (TSGLI) is included, providing financial assistance to service members who suffer severe injuries.

  • Conversion to Veterans' Group Life Insurance (VGLI) upon separation from service is available without medical underwriting if done within a specific timeframe.

2. Veterans' Group Life Insurance (VGLI)

  • Eligibility: Servicemembers who had SGLI coverage and are within one year and 120 days of separating from service.

  • Coverage: Up to the amount of SGLI coverage they had while in service, in increments of $10,000. Coverage can be increased by $25,000 every five years, up to a maximum of $400,000.

  • Premiums: Based on the veteran's age and the amount of coverage.

Features:

  • No medical examination is required if applied for within 240 days of separation.

  • Provides renewable term life insurance.

3. Family Servicemembers' Group Life Insurance (FSGLI)

  • Eligibility: Spouses and dependent children of servicemembers insured under SGLI.

  • Coverage:

  • Spouses: Up to $100,000 in increments of $10,000.

  • Dependent children: $10,000 automatically provided at no cost.

  • Premiums: Based on the age of the spouse and the amount of coverage. No cost for dependent child coverage.

Features:

  • Coverage for spouses can be converted to individual policies upon the servicemember's separation or the end of the marriage.

4. Service-Disabled Veterans Insurance (S-DVI)

  • Eligibility: Veterans who received a service-connected disability rating from the VA and are in good health except for the service-connected conditions.

  • Coverage: Up to $10,000, with an additional $30,000 in supplemental coverage available for totally disabled veterans.

  • Premiums: Based on age, type of plan, and amount of coverage.

Features:

  • Supplemental coverage available without proof of good health if applied for within one year of being rated totally disabled by the VA.

5. Veterans’ Mortgage Life Insurance (VMLI)

  • Eligibility: Severely disabled veterans who received a specially adapted housing (SAH) grant.

  • Coverage: Up to $200,000 to pay off the mortgage on a home adapted for a veteran’s disability.

  • Premiums: Based on age and the outstanding balance of the mortgage.

Features:

  • Pays directly to the mortgage lender in the event of the veteran’s death.

6. Other Programs

Traumatic Injury Protection under Servicemembers' Group Life Insurance (TSGLI):

  • Provides automatic traumatic injury coverage to all servicemembers covered under SGLI.

  • Pays a benefit ranging from $25,000 to $100,000 depending on the severity of the injury.

Conversion Options

Conversion to Individual Policies:

  • SGLI and FSGLI policies can be converted to individual commercial life insurance policies without the need for a medical examination.

Conclusion

Veterans and their families have several life insurance options provided by the government, ensuring financial protection tailored to the unique needs of military service members. These programs offer peace of mind by providing coverage during active duty and beyond, supporting veterans as they transition to civilian life. For more information or to apply, veterans should visit the VA website or contact their local VA office.

Also available are life insurance products offered by non-government entities.  These plans can be tailored to the Veteran’s specific needs.  For more information concerning these plans please contact us at the Brann Group.  One of our associates will be more than happy to answer your questions and help you decide which type of coverage will work best for you and your family.

Note: This information is for educational purposes only. Please refer to VA.gov for details. Information may change with or without notice. The Brann Group is not affillated with the Veterans Adminstration or Medicare.

 

Mark has worked in various financial industry sectors for almost four decades. He has worked with companies as diverse as Edward Jones, Omaha Investor Services, and life and health insurance companies too numerous to list. Some of Mark’s past and present achievements include: Master’s Degree in Accounting Series 7 & 63 (Securities Broker) 30+ Years Insurance Broker Enrolled Agent – I.R.S. (Individual Tax Consultant)

Mark Brann

Mark has worked in various financial industry sectors for almost four decades. He has worked with companies as diverse as Edward Jones, Omaha Investor Services, and life and health insurance companies too numerous to list. Some of Mark’s past and present achievements include: Master’s Degree in Accounting Series 7 & 63 (Securities Broker) 30+ Years Insurance Broker Enrolled Agent – I.R.S. (Individual Tax Consultant)

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