Military Life Insurance: Inexpensive Coverage to Protect Your Family

If you’re a veteran or currently serving in the military, you’ve already done so much to protect our country — and now you have the opportunity to protect your loved ones with VA life insurance. These policies, available exclusively to those who’ve served, are designed to give you peace of mind, knowing that your family will be taken care of if something happens to you.

Understanding the different VA life insurance options might feel overwhelming, but it doesn’t have to be. Each program has its own unique benefits, and knowing which one is right for you is the first step towards making sure your family is covered. Whether you’re a young service member just starting out in the military or a longtime veteran, there’s a VA life insurance program tailored to your needs.

In this guide, we’ll walk you through the key types of VA life insurance, explain who’s eligible, and break down the benefits of each program. By the end, you’ll have a clearer picture of which insurance option might be the best fit for you and your family. Let’s dive in and explore how the various types of VA life insurance can help you secure your family’s future.

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1. Veterans Affairs Life Insurance (VALife)

VALife is a relatively newer program designed specifically for veterans with service-connected disabilities. This whole life insurance policy offers coverage that lasts your entire lifetime, as long as premiums are paid.

Eligibility: Veterans with service-connected disabilities, aged 80 or younger. There are special provisions for those 81 or older.

Coverage: Up to $40,000, available in $10,000 increments.

Key Features:

Coverage begins two years after enrollment, assuming premiums are paid.
Builds cash value after two years, which you can borrow against or use to pay premiums.
No medical exam required, making it accessible for many veterans.
Premiums remain constant for life, providing predictable costs.

VALife doesn’t offer policy loans or premium waivers, which are features available in some other types of life insurance. To apply, you can submit an application online through VA.gov or by mail using VA Form 29-0991.

2. Servicemembers’ Group Life Insurance (SGLI)

SGLI is a term life insurance policy designed for active duty service members. It provides coverage for a specific period, typically during your time in service.

Eligibility: Most active duty service members, Ready Reserve, National Guard members, and some others are automatically enrolled.

Coverage: Up to $400,000.

Key Features:

Low-cost premiums, making it an affordable option for service members.
Automatic enrollment for most eligible individuals, ensuring widespread coverage.
Can be extended for up to two years if you’re totally disabled when leaving service.

You can manage your SGLI policy through the SGLI Online Enrollment System (SOES). This system allows you to designate beneficiaries and adjust your coverage amount as needed.

3. Veterans’ Group Life Insurance (VGLI)

VGLI allows veterans to continue life insurance coverage after leaving the military. It’s a term life insurance policy that can be renewed for your lifetime.

Eligibility: Veterans who had SGLI can convert to VGLI within 1 year and 120 days after leaving service.
Coverage: Can match SGLI coverage amount, up to $400,000.

Key Features:

No medical exam if applied for within 240 days of leaving service, making it accessible for many veterans.
Opportunity to increase coverage by $25,000 every five years, up to $400,000, allowing your coverage to grow with your needs.
Premiums increase every five years based on age, so costs will change over time.

You can apply for VGLI online through VA.gov or by mail using VA Form SGLV 8714. It’s important to note that while premiums start low, they can become quite expensive in later years.

4. Family Servicemembers’ Group Life Insurance (FSGLI)

FSGLI extends life insurance coverage to the families of service members who have SGLI. This ensures that not only the service member but also their loved ones are protected.

Eligibility: Spouses and dependent children of service members with full-time SGLI coverage.

Coverage:

Up to $100,000 for spouses (not to exceed the service member’s SGLI coverage amount)
$10,000 for dependent children

Key Features:

Automatic coverage for dependent children at no cost, providing peace of mind for parents.
Spouse coverage is optional and payable by the service member, allowing flexibility in family coverage.

FSGLI can be managed through the SGLI Online Enrollment System (SOES), making it easy to adjust coverage as family circumstances change.

5. Service-Disabled Veterans Life Insurance (S-DVI)

S-DVI offers life insurance for veterans with service-connected disabilities. It’s designed to provide coverage for those who might have difficulty obtaining commercial life insurance due to their disabilities.

Eligibility: Veterans with service-connected disabilities who received a rating within the last two years.
Coverage: Basic coverage up to $10,000, with potential supplemental coverage up to $30,000.

Key Features:

Premiums may be waived if the veteran is totally disabled, making it more affordable for those unable to work.
No cash value, meaning it functions purely as a death benefit without a savings component.

You can apply for S-DVI online through VA.gov or by mail using VA Form 29-4364. It’s important to apply within two years of receiving your disability rating to ensure eligibility.

6. Veterans’ Mortgage Life Insurance (VMLI)

VMLI is a unique program designed to help pay off the home mortgage of severely disabled veterans. This ensures that their families can remain in their adapted homes even after the veteran’s death.

Eligibility: Veterans who have received a Specially Adapted Housing (SAH) grant and have a mortgage on the adapted home.

Coverage: Up to $200,000 or the amount of your mortgage, whichever is less.

Key Features:

Paid directly to the mortgage holder, not to a beneficiary, ensuring the funds are used as intended.
Coverage decreases as the mortgage balance decreases, matching the outstanding debt.

To apply for VMLI, you’ll need to work with your Specially Adapted Housing agent. They can guide you through the process and help determine the appropriate coverage amount.

How to Apply and Manage Your Policy

How to Apply: Most applications are online, and for VALife, you’ll need to make your first premium payment when you apply.
How Your Family Gets the Benefits: Your beneficiaries (the people you leave your insurance to) will need to fill out a Claim for One Sum Payment using VA Form 29-4125. They can send this form online or by mail.
Managing Your Policy: You can easily manage your policy online. This includes checking the status, updating your information, and paying your premiums.
Review Your Policy Often: Remember, your life insurance needs may change over time, so it’s wise to review your coverage periodically and adjust as necessary.