Public Law 116-315 created a new program of insurance, Veterans Affairs Life Insurance program (VALI), for Veterans with service-connected disabilities.
Beginning January 1, 2023, VALI will provide guaranteed acceptance whole life coverage of up to $40,000 to Veterans, age 80 and under, with service-connected disabilities with no medical underwriting and no time limit to apply. Some Veterans over the age of 80 may qualify.
There is an initial two-year waiting period to achieve the policy face amount of coverage. If the insured passes away within the two-year waiting period, beneficiaries will receive premiums paid plus interest. If the insured passes away after the two-year waiting period, beneficiaries will receive the full coverage amount. And once locked in, premiums will never increase. The policy will begin to accrue cash value after the two-year waiting period.
No new applications for S-DVI or Supplemental S-DVI will be accepted after December 31, 2022.Those insured under the S-DVI program can keep their current coverage or switch to VA Life. Veterans who are insured under S-DVI and elect to transfer their coverage to VA Life can be insured under both programs during the initial two-year waiting period after enrollment in VA Life, if they apply between January 1, 2023, and December 31, 2025. Premiums must continue to be paid for coverage.
Veterans who convert from S-DVI to VA Life after December 31, 2025, cannot keep their S-DVI policy during the VA Life waiting period.
For more information on VA life insurance, call 800-669-8477 or visit https://www.benefits.va.gov/insurance/.