Life insurance benefits are an important financial tool for anyone, including Veterans. Even as life expectancy increases, so, too, does the average age of the Veteran population in the United States. Thanks to a new law passed in 2021, the U.S. Department of Veterans Affairs (VA) is reminding those who have served our country that Veterans Affairs Life Insurance is on the way. Get to know more about this important benefit, including when it’s starting and how the VA life insurance benefit will be available to the majority of Veterans.
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Veterans Affairs Life Insurance Is Coming in 2023
Do Veterans have life insurance? Thanks to the Johnny Isakson and David P. Roe, M.D., Veterans Health Care and Benefits Improvement Act, they will! Known as Veterans Affairs Life Insurance, or VALife, the program aims at making life insurance accessible to more Veterans who need it.
For years, only specific qualifying Veterans could receive life insurance through private life insurance companies or VA life insurance. Both Veterans’ Group Life Insurance and Service-Disabled Veterans Life Insurance programs offered life insurance through the VA but were more restrictive for applicants. Now, the VA will be providing a new VA benefit selling guaranteed life insurance to most Veterans, and it will go into effect on January 1, 2023.
“The new program meets the needs of service-connected veterans who may not have previously qualified for life insurance with VA,” said the VA via a blog post.
Veterans will have more options than ever to help prepare their families in the event of their passing through guaranteed life insurance benefits that can help pay for funeral costs, medical costs, and any other expenses that may occur surrounding the time of their death. The Service-Disabled Veterans Life Insurance program will continue for those who already have a plan, but it will stop taking new applications on December 31, 2022.
Qualifying for VA Life Insurance Benefits
VALife will provide coverage to all Veterans who are 80 years old and younger with a disability rating between 0 and 100. Veterans who are past the age of 80 may still be able to receive benefits if they did not receive a disability rating until after their 81st birthday, so long as they apply within two years of receiving their disability rating. This is a great way to receive VA disabled life insurance policies as VALife works to include more and more Veterans.
What VALife Benefits Will Offer
VALife is bringing benefits that can reach up to $40,000, with smaller payouts available to beneficiaries in $10,000 increments. The rates are subject to change and will depend on a variety of personal factors. With that being said, plans start as low as $11 per month.
VALife is providing whole life guaranteed acceptance coverage. In this type of coverage, the face amount of coverage takes effect two years after enrollment, as long as the premiums are paid during that time. Underwriting is not necessary during this time due to the two-year waiting period. Beneficiaries will receive all premiums paid and interest if the insured Veteran passes away within these two years.
Life Insurance Through the VA Just Got Better
A VA life insurance policy is an important tool for most Veterans, and the new bill creating VALife is going to help provide access to more people who have served to help them prepare for the later stages in life. To learn more about eligibility, coverage, pricing, and where to apply, be sure to visit the official Veterans Affairs Life Insurance (VALife) website for more information.
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