VALife: VA Life Insurance for Service-Connected Veterans

What VALife Is

VALife (Veterans Affairs Life Insurance) is a federally-administered whole-life insurance program for service-connected veterans. It launched January 1, 2023 and replaced the older S-DVI program for new applicants. Coverage is up to $40,000, premiums are based on your age when you apply (locked in for life), and there is no medical exam.

"Whole life" means the policy stays in force as long as you keep paying the premium. It does not expire at age 65 or 70 like a term policy. The death benefit is paid tax-free to your named beneficiary.

Who Qualifies

The eligibility rules are intentionally broad. You qualify if all four are true:

• You have a service-connected disability rating from the VA. Any rating counts, including 0%. The rating itself just needs to exist on a VA decision letter.
• You apply before your 81st birthday. Coverage is permanent once issued, but the application cutoff is age 80.
• You have not been declared mentally incompetent by the VA (or have a designated fiduciary handling the application on your behalf).
• You can pay the monthly premium. There is no income test.

You do not need to be enrolled in VA healthcare, you do not need to have a current claim pending, and you do not need to live in a particular state. Honorable, general, or honorable-with-conditions discharge all qualify so long as the VA has granted at least one service-connection rating on your file.

Cost & Premiums

Premiums are based on your age at the time you apply and lock in for life. They do not increase as you get older. Coverage starts at $10,000 and goes up in $10,000 increments to $40,000.

Approximate monthly premiums for $40,000 of coverage (these are illustrative, the VA publishes the official rate table):

Source: va.gov/life-insurance/options-eligibility/valife publishes the current official rate table. Always check the official rate before applying.

The Application Window, Don't Miss It

Two timing rules matter:

• If you received your first SC rating before January 1, 2023: you have until age 80 to apply, no separate two-year window.
• If you received your first SC rating on or after January 1, 2023: you have two years from the date of that rating decision letter to apply, OR until age 80, whichever comes first.

The two-year clock starts on the date of the rating letter, not the date the VA processed your claim or the date you received the letter. If you cannot find the original letter, request a copy of your Claim File (C-File) using FOIA, it contains all your rating decisions. See our Records Request Guide for how.

VALife vs. the Old S-DVI Program

S-DVI (Service-Disabled Veterans Insurance) was the predecessor program. It closed to new applicants on December 31, 2022. If you already had an S-DVI policy before that date, it remains in force, you do not need to switch. But the differences are worth knowing if you are deciding whether to apply for new coverage.

If you have a current S-DVI policy and want to upgrade to VALife, the VA does not automatically convert your coverage. You must apply for VALife separately. Talk to a VA-accredited representative before dropping S-DVI in favor of VALife, depending on your age and rating, the math may favor keeping both, dropping one, or switching.

Cash Value & Loans

Because VALife is whole-life, the policy builds cash value after 2 years. Cash value is the portion of premiums (plus credited interest) that you can borrow against or surrender. It is not a separate account you can withdraw from like a savings account, but it is a real asset:

• You can take a policy loan against the cash value at a fixed interest rate. The loan does not require credit approval.
• If you stop paying premiums, the policy can use cash value to keep itself in force for a period (this is called the "non-forfeiture" provision).
• You can surrender the policy and receive the cash value back. You lose the death benefit, but you get the accumulated cash.

For most veterans, the cash value is a side benefit, not the main reason to buy. The main value is the guaranteed-acceptance death benefit at a competitive rate that private insurers would not match for a service-connected applicant.

How to Apply

1. Gather your VA rating decision letter. This proves your service-connection rating. If you cannot find it, request your C-File via the Records Request Guide.
2. Visit the official application page at va.gov/life-insurance/options-eligibility/valife. The application is online, free, and takes about 15 minutes.
3. Choose your coverage amount ($10,000 to $40,000 in $10,000 increments) and your beneficiary. You can change the beneficiary later.
4. Submit and wait for approval. VALife is guaranteed-acceptance for eligible veterans, so approval is typically routine. Coverage starts on the date the VA approves the application.
5. Set up automatic premium payments. The VA accepts allotment from VA disability compensation (zero-friction), bank draft, or pension allotment. Allotment from VA compensation is the most common because there is no chance of missing a payment.

An accredited VSO representative can walk you through the application at no charge. Find a VSO near you.

Common Mistakes

• Waiting "until you need it." Premiums are based on age at application. The longer you wait, the more it costs each month for life. Veterans in their 30s and 40s pay a fraction of what 70-year-olds pay for the same coverage.
• Assuming you don't qualify because your rating is "only" 10% or 0%. Any service-connected rating qualifies. There is no minimum rating threshold.
• Missing the 2-year window. If your first SC rating was issued in or after January 1, 2023, mark the rating-decision date in your calendar. The window closes silently, there is no reminder from the VA.
• Dropping S-DVI before being approved for VALife. Your S-DVI policy is still valid coverage. Don't cancel it until VALife is in force, or you risk a coverage gap.
• Not naming a beneficiary. Without a designated beneficiary, the death benefit goes through probate. Name a person, not your estate, when possible.
• Confusing VALife with VGLI. VGLI (Veterans' Group Life Insurance) is a different program for veterans within 1 year + 120 days of separation, regardless of disability status. VALife is for service-connected veterans, no time-from-separation limit (just the 2-year window from rating).

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