Can Disabled Veterans Get Life Insurance?

Life insurance options are available for veterans, including those with disabilities, providing financial security for their loved ones. These options primarily come from the Department of Veterans Affairs (VA) and private insurers.

Life Insurance Programs for Veterans

Servicemembers’ Group Life Insurance (SGLI) offers low-cost term coverage to eligible service members during active duty. Most service members are automatically enrolled for $500,000 in coverage, unless they decline or reduce it. SGLI coverage remains in effect for 120 days following separation from military service.

Upon leaving the military, service members can convert SGLI into Veterans’ Group Life Insurance (VGLI). VGLI is a renewable term life insurance policy allowing veterans to maintain coverage after service. To qualify, veterans must have had SGLI and apply within one year and 120 days of separation. Applying within 240 days of separation ensures guaranteed acceptance without health questions.

VGLI coverage ranges from $10,000 to $500,000, not exceeding the SGLI amount held at separation. Premiums are determined by the veteran’s age and chosen coverage, increasing every five years. Veterans can also obtain life insurance from private providers, with eligibility and terms dependent on the insurer’s underwriting criteria and the individual’s health.

Specialized Coverage for Disabled Veterans

Veterans Affairs Life Insurance (VALife), launched January 1, 2023, is a whole life insurance program for veterans with service-connected disabilities. It offers guaranteed acceptance without medical underwriting. Veterans aged 80 or below with any VA service-connected disability rating, even 0%, are eligible, with no time limit to apply after receiving their rating.

VALife provides whole life coverage up to $40,000. The policy accumulates cash value over time, which grows tax-deferred. Premiums are fixed and do not increase. Full coverage begins two years after application, provided premiums are continuously paid. If the policyholder dies within this two-year period, beneficiaries receive the total premiums paid plus interest.

Traumatic Servicemembers’ Group Life Insurance (TSGLI) provides automatic coverage for SGLI-insured service members who sustain certain traumatic injuries. This benefit is a lump-sum payment, ranging from $25,000 to $100,000, depending on the type of injury. TSGLI provides short-term financial support for recovery from traumatic injuries, whether incurred on or off duty.

Covered traumatic injuries include total and permanent loss of sight or hearing, loss of a hand or foot, quadriplegia, paraplegia, hemiplegia, or severe burns. The benefit is paid directly to the service member and is separate from a death benefit. To be eligible for TSGLI, the service member must have been insured by SGLI at the time of the injury and suffered a scheduled loss within two years.

Applying for and Managing Policies

Veterans can apply for VGLI online via the Office of Servicemembers’ Group Life Insurance (OSGLI) website, by mail, or fax. When applying, veterans should include proof of their SGLI coverage, such as a DD214 or orders, and their first premium payment.

For VALife, eligibility can be checked and applications submitted online through the VA website. The first premium payment is required upon application.

Managing existing policies involves several actions. Designating or updating beneficiaries for SGLI, VGLI, and VALife policies can often be done online or through VA forms. Premium payments for VA life insurance programs can be made through direct debit, PayPal, Venmo, or debit/credit card. Payments can also be deducted automatically from military retirement pay or VA disability compensation.

Policyholders can access coverage information, pay premiums, and update contact details through online portals like eBenefits or VA.gov. For TSGLI claims, service members or their families need to complete VA Form SGLV 8600 and submit it with supporting medical documentation to their branch of service. Processing time for an initial TSGLI claim with complete documentation is generally around 30 business days.