Financial Literacy Month: Protect those who matter most with VA Life Insurance
April is Financial Literacy Month, making it the perfect time to plan for the future with life insurance.
Life insurance is an important financial tool that provides peace of mind to you and your loved ones. The Department of Veterans Affairs (VA) offers several life insurance options to meet the needs of our Nation’s service members and Veterans, including Servicemembers’ Group Life Insurance (SGLI), Veterans’ Group Life Insurance (VGLI), and Veterans Affairs Life Insurance (VALife).
Why life insurance matters
Every stage of life brings different needs, and life insurance can help at each one. Life insurance provides funds to help cover funeral expenses, replace income for loved ones or pay off outstanding debts, offering financial stability when it’s needed most.
Types of life insurance
The two main types of life insurance policies are whole life and term life. Whole life insurance policies last the entire lifetime of the insured, typically have lower coverage amounts and higher premium rates because they build cash value; however, premium rates are fixed for the life of the policy and do not increase with age. Premium rates are also lower when enrolled at a younger age.
Term life insurance policies are only in effect for a set period, usually have higher coverage amounts at lower premium rates, and do not build cash value. Premium rates also increase as you age. Learn more about the differences between whole life and term life insurance.
For service members and military families
Active-duty, National Guard and Reserve service members are automatically eligible to be covered under Servicemembers’ Group Life Insurance (SGLI), which offers up to $500,000 in low-cost term life insurance coverage. Traumatic injury protection coverage (TSGLI) is also included with SGLI up to $100,000.
Spouses and dependent children of service members covered by SGLI can also receive coverage under Family Servicemembers’ Group Life Insurance (FSGLI). Spouses can have coverage up to $100,000 with a paid premium, and dependent children are covered for $10,000 at no cost to a service member who has SGLI coverage.
Veterans can choose to convert their term life insurance coverage after separation from service to Veterans’ Group Life Insurance (VGLI), which offers term life insurance coverage equal to the amount held under SGLI. Veterans must apply for VGLI within one year and 120 days from their date of separation, and those who apply within 240 days following separation do not need to answer any health questions.
Veterans may also choose whole life insurance coverage through the Veterans Affairs Life Insurance (VALife) program, which offers guaranteed acceptance whole life insurance to Veterans age 80 or under with any level of service-connected disability (0-100%) and no time limit to apply. Veterans 81 or older may be eligible for VALife if you meet specific requirements.
VALife provides up to $40,000 in coverage, requires no health questions, includes competitive premiums that never increase, and builds cash value after the first two years of enrollment. Enrollment is fully online with instant decisions.
Some Veterans with service-connected disabilities may also qualify for up to $200,000 in coverage through Veterans’ Mortgage Life Insurance (VMLI), which offers mortgage protection insurance for those who received a Specially Adapted Housing (SAH) grant to adapt a home to fit their unique service connected disability needs.
Learn more
You can learn more about these programs by visiting va.gov/life-insurance.