Veterans Affairs Life Insurance (VALife)
The Veterans Affairs Administration (VA) provides many benefits to veterans. The VA also provides benefits which cost the veteran. One of these many benefits for which the veteran can pay is Veterans Affairs Life Insurance (VALife). The initial roll out started January 1, 2023. For more detailed information, please visit https://www.va.gov/life-insurance/options-eligibility/valife/.
VALife is a whole life insurance policy purchased in $10,000 increments from $10,000 to a maximum of $40,000 with guaranteed acceptance. Any veteran who has a service-rated disability (even 0%) is eligible.
VALife has a cash value which begins two years after approval. If the veteran dies during the first two years, the beneficiary receives all payments made up to the date of death plus interest. After the two year mark, the beneficiary receives the entire value of the life insurance policy.
Now for the kicker – whole life insurance is expensive the older you are when you begin making payments. For an eligible veteran who is 25 years old with $40,000 of VALife, the monthly payments are $52.80 or one annual payment of $607.60 (a savings of $2.07 per month). In general, this is very affordable for whole life. For an eligible veteran who is 65 years old with $40,000 of VALife, the monthly payments are $248.00 or one annual payment of $2,942.40 (a savings of $2.83 per month). At retirement age, this is not cheap but all whole life insurance works this way.
If you are looking for any kind of life insurance for veterans, have a service-related disability and VALife is not for you, please visit https://www.va.gov/life-insurance/options-eligibility/s-dvi/ for the various term life insurance policies offered by the VA.
Please return here often for information for veterans and their families.