WASHINGTON, D.C. — The Department of Veterans Affairs will suspend Veterans’ Group Life Insurance premiums for three months beginning Nov. 1, saving more than 457,000 participating veterans an estimated $150 million as the agency implements the program’s first premium holiday.
The premium holiday will run through Jan. 31, 2027. Veterans with eligible coverage will maintain their life insurance without making premium payments during the applicable period.
VGLI is a self-funded term life insurance program that allows veterans to maintain coverage after leaving the military. Premiums vary by age and coverage amount, with participants paying about $110 per month on average, according to the VA.
The agency estimates the average veteran will save about $330 over the three-month period.
“VA is all about making life better and more affordable for Veterans, and this premium holiday will help the men and women who served this nation keep more of their hard-earned money,” VA Secretary Doug Collins said.
Veterans whose VGLI coverage is active when the premium holiday begins will receive the benefit automatically. Policies that are canceled or lapse on or before Oct. 31 will not qualify.
Veterans who recently enrolled or reinstated coverage may receive one or more months of the premium holiday depending on when their coverage becomes effective. The first premium payment remains required to activate new coverage.
Policyholders who have already paid premiums covering the holiday period will have the applicable amount credited to their next billing statement, according to VA guidance.
The premium holiday applies only to VGLI and does not extend to other federal life insurance programs, including Servicemembers’ Group Life Insurance, Family Servicemembers’ Group Life Insurance or Veterans Affairs Life Insurance.
The VA said VGLI’s financial performance made the temporary suspension of premiums possible.
More information about VGLI and the premium holiday is available at www.va.gov/life-insurance/options-eligibility/vgli/.
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