On January 1, 2023, Veterans will be able to take part in a new VA life insurance program called VALife. Given the shortcomings some see with the existing programs offered, namely VGLI (Veterans Group Life Insurance), many are hoping VALife is the solution they’ve been looking for. Here’s what we know so far. Suggested read:VA Cost of Living Increase 2022 Promises Vets Better Standard of Living

What Is VALife?

VALife is a life insurance policy for Veterans of the U.S. Armed Forces; that much is obvious. But what info has been released about coverage options, policy pricing, and eligibility? Let’s dive in.

VALife Coverage and Monthly Rates

The new life insurance VA program will offer a maximum of $40,000 in life insurance. This policy is considered a whole life policy, and this means that Veterans will be required to pay monthly premiums to maintain their coverage. As mentioned, policy amounts go up to $40,000, but you don’t have to pay for the maximum if you don’t need it. Coverage is available in $10,000 increments starting at $10,000. VA life insurance rates for this new policy vary depending on your age and chosen coverage. Younger enrollees with the minimum coverage amount can expect to pay as little as $11 per month. Contrastingly, the oldest enrollees with the maximum coverage amount could pay as much as $510 per month. Your monthly premium is also fixed after you sign up, so even as you get older, you will be paying the same amount for your VALife coverage each month as you did when you first enrolled. VALife has announced that there are no premium waivers available for this policy.

VALife Eligibility

All Veterans under 80 years old are eligible for the full $40,000 coverage. Additionally, program acceptance is guaranteed, meaning there will be no medical exam required before you can obtain coverage. If you’re over 80 but did not receive a disability rating until after you turned 80, you can also take part in the program so long as you apply within two years of receiving your rating. If you’re currently enrolled in VGLI or Veterans Mortgage Life Insurance (VMLI), you’re allowed to keep your existing coverage while also adding on the new VALife benefit. For those enrolled in Service-Disabled Veterans Insurance (S-DVI), the story is a bit different. You either have to keep your current coverage or swap completely to VALife without maintaining your S-DVI coverage if you’re interested in the new program. This is because S-DVI is closing to all new applicants starting on January 1, 2023.

VALife Payout

Since this is a whole life insurance policy, there are stipulations to payouts, especially within the first two years of the program. If the policyholder passes away within the first two years of VALife coverage, their chosen beneficiary will only get a payout equal to the amount of premiums paid by the policyholder in addition to interest. To be eligible for a full payout, the policy must be in effect and paid on for a full two years.

VALife Refund and Cancellation Policy

If you decide you no longer need VALife coverage, you’re allowed to cancel the policy after it’s been in effect for a minimum of two years. When you cancel your policy, you can receive a refund of all premiums paid with interest. Veterans are also allowed to borrow money against their policy after it has been active for two years, though this isn’t suggested.

Sign Up for VALife on January 1, 2023

If you’re interested in this new life insurance policy from the VA, the program goes into effect on January 1, 2023, at which time the application will go live on the VA’s website. If you want to learn more about VALife and your specific situation, you can call the VA life insurance phone number at 1 (800) 669-8477. Read next:New VA Life Insurance Benefit Coming Soon