Understanding VA Life Insurance Policies: Coverage, Eligibility, and Costs

What a VA life insurance policy covers

VA life insurance provides a death benefit to the beneficiary named by the service member, helping cover funeral expenses, debts, and ongoing family needs. The policy is backed by the Department of Veterans Affairs, meaning premiums are typically lower than comparable private policies for eligible veterans.

Eligibility requirements

To qualify, a veteran must be receiving VA disability compensation, be a surviving spouse of a veteran who died from a service‑connected cause, or be an active‑duty service member who has a service‑connected disability. Applicants must also meet age limits (generally 18‑70) and have no disqualifying health conditions for the specific plan.

Types of VA life insurance

The VA offers three main programs:

• Servicemembers' Group Life Insurance (SGLI) – coverage while on active duty, up to $400,000.
• Veterans' Group Life Insurance (VGLI) – converts SGLI after discharge, with renewable term up to 20 years.
• Service‑Disabled Veterans' Insurance (S-DVI) – provides up to $10,000 for veterans with a service‑connected disability.

How premiums are calculated

Premiums depend on the chosen coverage amount, the veteran's age at enrollment, and the specific plan. SGLI rates are flat (e.g., $0.06 per $1,000 of coverage per month), while VGLI premiums increase with age. S‑DVI premiums are reduced for higher disability ratings, reflecting the lower risk to insurers.

Key benefits and limitations

Benefits include guaranteed issue for eligible veterans, no medical underwriting for SGLI and VGLI, and the ability to convert coverage without new health exams. Limitations involve maximum coverage caps, age restrictions, and the fact that VA policies are term only—there is no cash‑value component.

Comparison of VA life insurance options