VALife Insurance Program to Replace S-DVI
If you have a VA disability rating from the Department of Veterans Affairs, you may be eligible for a VA life insurance policy specifically designed for disabled veterans. This policy is known as VALife. According to VA.gov, “You’re eligible for VALife if you have a VA service-connected disability rating—even if your rating is 0%.” There is no time limit to apply once you receive your rating.
VA Life Insurance for Disabled Veterans
Public Law 116-315 was passed in 2021. It was intended to accomplish several objectives, including modernizing the VA life insurance program to replace an outdated version. That modernization took effect on January 1, 2023.
In the past, the Department of Veterans Affairs offered enrollment options for a life insurance program for veterans with VA-rated disabilities. This insurance, known as Service-Disabled Veterans Life Insurance (S-DVI), was meant to provide affordable coverage. It offered up to $40,000 in coverage for qualifying vets.
However, thanks to Public Law 116-315, that program closed to new enrollments at the end of 2022. In 2023, the VA will introduce a new life insurance program, VALife, to replace S-DVI.
What Is VALife?
VALife is described on the VA official site as “guaranteed acceptance” whole life insurance. This type of insurance is effective as long as the premiums are paid.
This is unlike term life insurance, which has a fixed term that may expire. VALife coverage amounts are similar to S-DVI. You may qualify for coverage in $10,000 increments up to a maximum of $40,000.
Who Qualifies For VALife?
You may be eligible for VALife if you are 80 or younger and have a VA disability rating. Alternatively, if you applied for a VA disability rating before turning 81 and received an initial rating after reaching 81, you may also qualify.
Those who are 80 or younger have no time limit to apply for VALife. However, those who are 81 or older must apply within 2 years of receiving a rating for a new service-connected condition applied for prior to age 81.”
VALife has a feature that provides limited coverage for the first two years of the plan and full coverage after that. If the veteran dies before the two initial years have passed, the beneficiaries receive their premiums back plus interest. The full coverage amount is paid if the veteran dies after the 2-year initial period.
Why the two-year “introductory” period? According to the VA, this is intended to justify eliminating a medical exam or medical requirements for enlisting.
Which Disability Ratings Make Me Eligible For VALife?
All Veterans aged 80 and under, who have a VA disability rating of 0 to 100 percent, are eligible for the VALife program, according to VA.gov.
Do I Have to Switch From S-DVI To VALife?
As mentioned above, S-DVI accepted new enrollments until the end of 2022. The initial 2023 enrollment options included the ability to switch from S-DVI to VALife. Those who already carry S-DVI and apply for VALife between 2023 and the end of 2025 may continue to carry S-DVI for the 2-year introductory period of VALife.
But you DO NOT have to switch out of S-DVI and into VALife. You may keep S-DVI. The coverage will remain in effect as long as you continue to pay your premiums. December 31, 2025, is the final day to apply for VALife (see below) while continuing to maintain S-DVI for the two-year introductory period.
The VA has some advice for those looking to switch from S-DVI to VALife:
Those who apply for VALife by December 31, 2025, can keep S-DVI “during the 2-year waiting period for VALife benefits. Your S-DVI (including policies with premium waivers) will end when your full VALife coverage starts. You must pay premiums for both policies during the 2-year waiting period.”
Those who apply for VALife on or after January 1, 2026, should know that “your S-DVI (including policies with premium waivers) will end the day we approve your VALife application. You’ll need to pay only VALife premiums during the 2-year waiting period, but you won’t have full coverage during this time.”
Such options are always subject to change based on new legislation, changes to federal policy, or other factors. It is best to review the current guidelines before applying.
How Much Does VALife Cost?
VALife premiums are based on your age at the time of enrollment. For example, in the past, a 20-year-old enrollee would pay just under $11 monthly for $10,000 worth of coverage. Meanwhile, an 80-year-old enrollee would pay just under $130 for the same amount.
For the full $ 40,000 in coverage, the 20-year-old would pay under $50 per month, while the 80-year-old enrollee pays approximately $510.00 for the same insurance. However, these rates are given as examples only at the VA official site and are subject to change. Your experience may vary.
>> Obtaining affordable life insurance coverage with no medical exam or lab tests required is easy. Get a no-obligation, free consultation to determine your eligibility.
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About the author
Editor-in-Chief Joe Wallace is a 13-year veteran of the United States Air Force and a former reporter/editor for Air Force Television News and the Pentagon Channel. His freelance work includes contract work for Motorola, VALoans.com, and Credit Karma. He is co-founder of Dim Art House in Springfield, Illinois, and spends his non-writing time as an abstract painter, independent publisher, and occasional filmmaker.
