In January 2023, the U.S. government is releasing a new Veterans Affairs Life Insurance (VALife) program for disabled veterans.

Learn how this plan works, the cost, who is eligible, and if you should buy it.

 

How Does The VALife Insurance Program Work?

The Veterans Affairs Life Insurance (VALife) program is a guaranteed issue whole life policy that offers $10,000, $20,000, $30,000, or $40,000 in protection.

It provides permanent coverage to help disabled veterans secure life insurance to cover funeral costs.

Tip:
This coverage is not available until January 2023. You cannot apply until then.

 

There are no health questions or exams to qualify. You cannot be denied due to pre-existing conditions.

The policy is whole life, a type of permanent life insurance that will never expire due to age. The premiums are guaranteed never to increase, and the coverage will never decrease.

Because acceptance is guaranteed, there is a two-year waiting period before the benefits kick in.

Death during the waiting period will only result in a refund of premiums plus a small amount of interest.

As is the case with all forms of life insurance, the payout will be in the form of a tax-free check payable to your beneficiaries.

There are no restrictions on how the policy proceeds are spent.

 

Who Is Eligible For The VALife Program?

To be eligible for the Veterans Affairs Life Insurance program, you must be a veteran 80 years or younger with a service-connected disability rating of 0-100%.

Under certain conditions, it’s possible for veterans who are 81 or older to apply.

Here are the three requirements if you’re 81+ (you must meet all three):

  • You must apply within two years of receiving a new service-connected disability rating.
  • Applied for VA disability compensation before age 81.
  • Received a new service-connected disability rating after turning 81.

 

How Much Does The VALife Plan Cost?

The price of VALife insurance coverage depends on your age and how much coverage you buy. The premiums are identical for all genders.

Once you buy your coverage, the rate is locked in for life.

Below is a table that outlines the projected cost of this coverage.

 

Age$10,000
(Monthly Prices)
$20,000
(Monthly Prices)
$30,000
(Monthly Prices)
$40,000
(Monthly Prices)
18$11.00$22.00$33.00$44.00
19$11.30$22.60$33.90$45.20
20$11.60$23.20$34.80$46.40
21$11.90$23.80$35.70$47.60
22$12.30$24.60$36.90$49.20
23$12.60$25.20$37.80$50.40
24$13.00$26.00$39.00$50.40
25$13.40$26.80$40.20$53.60
26$13.80$27.60$41.40$55.20
27$14.20$28.40$42.60$56.80
28$14.60$29.20$43.80$58.40
29$15.10$30.20$45.30$60.40
30$15.60$31.20$46.80$62.40
31$16.10$32.20$48.30$64.40
32$16.70$33.40$50.10$66.80
33$17.30$34.60$51.90$69.20
34$17.90$35.80$53.70$71.60
35$18.60$37.20$55.80$74.40
36$19.20$38.40$57.60$76.80
37$19.90$39.80$59.70$79.60
38$20.70$41.40$62.10$82.80
39$21.50$43.00$64.50$86.00
40$22.30$44.60$66.90$89.20
41$23.20$46.40$69.60$92.80
42$24.10$48.20$72.30$96.40
43$25.00$50.00$75.00$100.00
44$26.00$52.00$78.00$104.00
45$27.00$54.00$81.00$108.00
46$28.10$56.20$84.30$112.40
47$29.30$58.60$87.90$117.20
48$30.40$60.80$91.20$121.60
49$31.70$63.40$95.10$126.80
50$33.00$66.00$99.00$132.00
51$34.40$68.80$103.20$137.60
52$35.80 $71.60$107.40$143.20
53$37.30$74.60$111.90$149.20
54$39.00$78.00$117.00$156.00
55$40.60$81.20$121.80$162.40
56$42.40$84.80$127.20$169.60
57$44.20$88.40$132.60$176.80
58$46.10$92.20$138.30$184.40
59$48.00$96.00$144.00$192.00
60$50.10$100.20$150.30$200.40
61$52.30$104.60$156.90$209.20
62$54.60$109.20$163.80$218.40
63$56.90$113.80$170.70$227.60
64$59.40$118.80$178.20$237.60
65$62.00$124.00$186.00$248.00
66$64.80$129.60$194.40$259.20
67$67.80$135.60$203.40$271.20
68$70.90$141.80$212.70$283.60
69$74.40$148.80$223.20$297.60
70$78.00$156.00$234.00$312.00
71$81.80$163.60$245.40$327.20
72$85.80$171.60$257.40$343.20
73$90.10$180.20$270.30$360.40
74$94.70$189.40$284.10$378.80
75$99.50$199.00$298.50$398.00
76$104.60$209.20$313.80$418.40
77$109.90$219.80$329.70$439.60
78$115.60$231.20$346.80$462.40
79$121.40$242.80$364.20$485.60
80$127.50$255.00$382.50$510.00
Please note that veterans above 80 must meet these requirements to apply.
81$133.80$267.60$401.40$535.20
82$140.40$280.80$421.20$561.60
83$147.40$294.80$442.20$589.60
84$154.70$309.40$464.10$618.80
85$162.60$325.20$487.80$650.40
86$171.10$342.20$513.30$684.40
87$180.40$360.80$541.20$721.60
88$190.90$381.80$572.70$763.60
89$202.90$405.80$608.70$811.60
90$217.00$434.00$651.00$868.00
91$234.30$468.60$702.90$937.20
92$256.40$512.80$769.20$1,025.60
93$287.40$574.80$862.20$1,149.60
94$337.00$674.00$1,011.00 $1,348.00
95$442.00$884.00$1,326.00 $1,768.00

 

Should You Buy This VA Guaranteed Acceptance Whole Life Insurance?

It’s admirable that the VA made an effort to help veterans with this life insurance program. However, just because the federal government administers it does not mean it’s the best option for veterans.

The truth is that veterans, disabled or not, can almost always get the same type of coverage for a lower premium.

Tip:
Most veterans, despite past serious health issues, can obtain a funeral insurance policy that does not require a two-year waiting period as this VAlife program does.

 

All veterans who need insurance to cover their burial should first consult with an independent insurance broker.

Independent insurance agencies like Choice Mutual can compare offers from 10-20 different insurance companies to ensure they can get each client the best deal possible.

If you’re a veteran and need insurance, an independent insurance broker will certainly get you a much better insurance deal than this VALife plan.

This plan would only be advisable for disabled veterans above 85 who have severe pre-existing conditions.

 

How To Apply

Applying for the Veterans Affairs Life Insurance program will be done via a fully automated online application.

Since the policy does not have medical underwriting requirements, the application will always provide instant approvals.

This program won’t be available until January 2023. Once released, we will update this article to include a direct link to the enrollment form.

 

Does VALife Coverage Affect Other VA Life Insurance Programs?

The VALife coverage does not impact any current or future VA life insurance programs. If you have other VA life insurance coverage, you can keep it in addition to your VALife plan.

Conversely, if you purchase the VALife plan, it won’t make you ineligible for other VA life insurance programs.

 

Frequently Asked Questions

The VALife insurance program is being issued directly from the Department of Veterans (federal government policy). There is no third-party private insurer involved.

The VALife insurance program is only for veterans with a service-connected disability. Being a spouse of a disabled veteran does not make you eligible for this coverage.

At this time, the only options are $10,000, $20,000, $30,000, or $40,000. You cannot buy any other amount of coverage.

The VALife insurance program is only available to veterans with a disability connected to their service in the military. Veterans without a service disability are not eligible.

Death in any form will only result in a refund of premiums plus interest. That is contrary to most guaranteed acceptance policies available via private insurers. Private insurance companies will pay out the full death benefit for accidental deaths during the first two years.