Understanding VALife: How Guaranteed Acceptance Coverage Works
Veterans Affairs Life Insurance (VALife) is a guaranteed-acceptance whole life program for veterans with a service-connected disability rating. Because it is guaranteed acceptance, there are no medical exams and no health questions. Coverage goes up to $40,000, available in $10,000 increments. Premiums are fixed and based on your age when you enroll.
Who qualifies
You are eligible if you are age 80 or younger and have a VA service-connected disability rating of 0 to 100 percent. Even a 0 percent rating qualifies. There is no time limit to apply. If you are 81 or older, you may still qualify in limited cases, such as applying for compensation before age 81 and receiving a new rating afterward, if you apply within two years of that rating.
The two-year waiting period
This is the detail to plan around. Your VALife coverage takes full effect two years after you enroll, as long as you keep paying the premiums during that time. If you pass away within the first two years, the program returns the premiums paid plus interest rather than the full benefit. After two years, the full death benefit is in place, and the policy starts to build a small cash value.
Where VALife fits, and where it falls short
VALife is valuable when your health limits your options, because acceptance is guaranteed. The limits are the $40,000 cap and the two-year wait, which may not be enough on their own to cover a mortgage or replace years of income.
Many veterans with a rating still qualify for private coverage. A disability rating does not automatically disqualify you from a private policy, and private term life can offer a much larger amount at a lower cost if you can qualify. It is worth comparing both. You can also keep coverage through VGLI after you separate. For the full set of choices, start with veteran life insurance, explained.