What type of coverage does VALife insurance provide and how does the VA determine premiums? 

As previously stated, VALife provides its users with coverage up to $40,000 available in $10,000 increments, and cash value starts to add up 2 years after they approve your insurance application; furthermore, VALife premium rates are the same for men and women, and the rates will not increase over the time of the life insurance period. Instead, premiums are based on information like the veteran’s age and coverage amount upon enrollment in the plan. There are a couple more details that help determine your premium, such as the time of your life insurance application in regard to your birthday. If more than 6 months have passed since your last birthday at the time of applying, the VA will consider you 1 year older when determining the premium rate. For example, if you are 45 years and 6 months and 1 day old, you will pay the rate for age 46. 

It is important to note that your full life insurance coverage starts 2 years after you apply for the benefits, and you must pay the premiums in monthly rates during those 2 interim years. If a veteran should pass during their 2 year waiting period, the VA pays your beneficiaries the total amount you paid in premiums with interest. The beneficiaries of the insurance policy are selected by the veteran when they apply. If the veteran passes after the 2 year waiting period, the VA will pay your beneficiaries the full coverage amount of your life insurance policy. While the insurance policy does take time to go into full effect, you do have the comfort that your beneficiaries will receive some money, even if you do not make it to that two year mark. 

What is a whole life insurance program? 

VALife coverage is a whole life insurance program. A whole life insurance program provides coverage for the entire life of the policyholder, as long as the policyholder pays their monthly rates, otherwise known as premiums. Whole life insurance policies typically have higher premiums than term life insurance policies; however, they do come with a savings component, known as the cash value. A portion of the premiums you pay goes towards building up the cash value, which grows over time. The cash value can be accessed during your lifetime through policy loans or withdrawals. This money can be used to help pay for expenses like college tuition, a down payment on a home, or even supplement your retirement income. Furthermore, if you no longer need the policy, you can surrender it and receive the cash value as a lump sum.

How does VALife differ from the VA’s past life insurance program? 

The VA’s previous life insurance program for veterans with service-connected disabilities is known as Service-Disabled Veterans Life Insurance (S-DVI). The program has a two year limit to apply, as well as health information requirements and exams to enroll. As stated previously, VALife is a guaranteed acceptance whole life insurance program, meaning the time limit to apply is eliminated and no health questions or exams are required to enroll. Additionally, VALife increases the coverage amount for veterans. This new program offers a maximum of $40,000, while the S-DVI program only offered up to $10,000 in basic coverage. Therefore, it is safe to say VALife provides many more benefits and coverage than the S-DVI program does for service-disabled veterans. 

If you are still covered under another veteran’s program, you may be eligible to add VALife to your plan. If you are insured by VGLI and you are eligible for VALife, you can add VALife coverage to your plan, meaning that the programs complement each other well. This is because veterans insured by VGLI who add VALife to their coverage ensure that they receive higher coverage in earlier stages of life and continued coverage once their term life coverage expires.