WASHINGTON, D.C. — The Department of Veterans Affairs (VA) recently announced that its new life insurance program, VALife, has issued over $950 million in coverage to 31,400 veterans within its first year. This program marks the first new VA life insurance initiative for veterans in over half a century.
Launched in January 2023, VALife was designed to extend life insurance coverage to millions of veterans, offering up to $40,000 of whole life insurance. The program guarantees acceptance for all veterans aged 80 or under with service-connected disabilities, irrespective of the disability percentage. Notably, the application process requires no medical underwriting, allowing veterans to apply online and receive an immediate decision.
The program’s success aligns with President Biden’s Unity Agenda, which emphasizes the nation’s obligation to care for its veterans and their families. The VA is now providing more insurance coverage to more policyholders than ever before, serving 5.6 million veterans, service members, and their families with $1.5 trillion of insurance.
Denis McDonough, Secretary of Veterans Affairs, expressed his satisfaction with the program’s impact, stating, “All veterans deserve to know that their families will have financial support when they pass away. VALife helps make that happen, providing well-earned peace of mind to veterans and their families nationwide.”
VALife represents a significant improvement over the VA’s previous life insurance program, Service-Disabled Veterans Insurance (S-DVI), in several key areas:
- Firstly, unlike S-DVI, VALife imposes no time limit to apply for insurance, removing the two-year constraint that existed under S-DVI.
- Secondly, while S-DVI required veterans to be in good health except for service-connected conditions, VALife has no such health requirement.
- Lastly, VALife offers more coverage than S-DVI, providing up to $40,000 compared to S-DVI’s maximum of $10,000.
Furthermore, VALife’s premium rates are competitive with, or better than, similar policies available in the private sector. The policy also builds cash value after the first two years of coverage. Should a veteran pass away during this two-year waiting period, the named beneficiary will receive all premiums paid plus interest.
The introduction and success of VALife underscore the importance of providing financial security to those who have served their country. The program not only offers a safety net to veterans but also ensures their families are well taken care of financially. As the program continues to grow and evolve, it will be essential to monitor its impact on the veteran community and assess how effectively it meets their unique needs.
While veterans currently enrolled in S-DVI can choose to retain their existing coverage or switch to VALife, they should be aware that if they apply before December 31, 2025, they can also maintain coverage under S-DVI during the two-year waiting period for the VALife death benefit to take effect.
To learn more visit va.gov/life-insurance/.
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