Life Insurance for Veterans: Check VA Options First
Updated September 7, 2026
Coverage guide
Life Insurance for Veterans: Check VA Options First
If you have a VA disability rating of any percentage, even 0%, you can likely get guaranteed acceptance whole life insurance directly from the VA through VALife, usually for less than a private guaranteed issue policy. Check that first. If you do not qualify, or you need more than $40,000, a…
Why veterans should look at the VA before buying guaranteed issue
Every week I talk with veterans who bought a private guaranteed issue policy from a TV ad without knowing the VA offers its own version, often at a lower price. That is money left on the table, and I would rather tell you about it up front than sell you something you did not need.
This guide walks through the VA life insurance programs that still accept new applicants in 2026, what each one costs according to the VA’s own published rate tables, and the situations where a private policy, guaranteed issue or otherwise, is the better choice. I also cover VA burial benefits, because knowing what the VA will and will not pay toward a funeral changes how much coverage you actually need.
VALife: the VA’s guaranteed acceptance whole life policy
Veterans Affairs Life Insurance (VALife) opened on January 1, 2023 and replaced the older S-DVI program for new applicants. It is guaranteed acceptance whole life insurance. If you meet the eligibility rules, the VA approves you automatically, with no medical exam and no health questions.
| Feature | VALife (per VA.gov, updated May 2026) |
|---|---|
| Who qualifies | Veterans age 80 or younger with a VA service-connected disability rating of 0% to 100%. No deadline to apply. |
| Age 81 and older | Only if you applied for disability compensation before 81, received a rating for that disability after 81, and apply within 2 years of the rating notice. |
| Coverage amounts | $10,000, $20,000, $30,000, or $40,000 |
| Waiting period | 2 years. If you die during the wait, the VA returns all premiums paid plus interest (4.23% for deaths in 2026). |
| Premiums | Fixed at the age you apply. Never increase. |
| Cash value | Begins building 2 years after approval |
| Policy loans | Not available |
| Premium waiver for disability | Not available |
| How to apply | Online at VA.gov with an instant decision. First premium is due with the application. |
Two details matter more than most people realize. First, a 0% rating counts. Many veterans carry a 0% rating for something like tinnitus or an old knee injury and assume it gives them nothing. For VALife, it opens the door. Second, the VA rounds your age up if you are more than six months past your last birthday, so a veteran who is 64 years and 7 months old pays the age-65 rate. Applying a few months earlier can lock in a lower price for life.
What VALife costs at common ages
These are the monthly premiums published on VA.gov as of May 2026. They are illustrative, and the VA can change them, but they are the actual figures the VA charges today.
| Age when you apply | $10,000 | $20,000 | $40,000 |
|---|---|---|---|
| 50 | $32.50 | $65.00 | $130.00 |
| 55 | $40.10 | $80.20 | $160.40 |
| 60 | $50.00 | $100.00 | $200.00 |
| 65 | $62.00 | $124.00 | $248.00 |
| 70 | $78.00 | $156.00 | $312.00 |
| 75 | $99.50 | $199.00 | $398.00 |
| 80 | $127.50 | $255.00 | $510.00 |
The VA’s own fact sheet says these rates are “competitive, or better” than private guaranteed acceptance coverage, and in my experience that holds up for most ages. Private guaranteed issue policies are priced for a pool of people who could not qualify anywhere else. VALife is priced for veterans with a rating, which includes a lot of people with minor conditions, so the pool is healthier and the price is lower. You can compare these numbers against typical private pricing on our guaranteed issue cost by age guide.
One honest caution: a 2-year waiting period is still a 2-year waiting period. If you are 78 with a serious diagnosis, VALife will not pay the full benefit if you pass in the first two years, and neither will a private guaranteed issue policy. That is a reason to look hard at whether a simplified issue policy with day-one coverage is within reach before defaulting to either.
The order to check, from best deal to last resort
Guaranteed issue should always be the last option, not the first. For veterans, the list has two extra rungs at the top.
VGLI, if you separated recently
Within 240 days of leaving service you can convert your SGLI to VGLI with no health questions, up to $500,000. This is term coverage and it gets expensive after 60, but for a veteran with serious conditions it may be the only way to get six figures of coverage.
VALife, if you have any rating
Up to $40,000 of guaranteed acceptance whole life at the VA’s published rates. If you qualify and $40,000 is enough, this usually beats every private guaranteed issue policy on price.
Private level or simplified issue
If your health is reasonably stable, a private simplified issue policy asks a few questions and can pay the full benefit from day one with no 2-year wait. This can be better than VALife even if you qualify for VALife.
Private guaranteed issue
For veterans with no rating, or who need coverage on top of VALife, and who cannot pass simplified issue questions. ages 18–85 (varies by carrier) (exact range varies by carrier), typically $5,000 to $25,000 per policy.
VGLI: the 240-day window most veterans miss
Veterans’ Group Life Insurance is the civilian continuation of the SGLI you had on active duty. You can apply for it for up to 1 year and 120 days after separation, but the part that matters is the first 240 days: apply in that window and the VA does not ask a single health question.
That makes VGLI the only large-face-amount guaranteed acceptance option most veterans will ever see. A private carrier will not write $400,000 on someone with a recent cancer history or a serious mental health diagnosis. VGLI will, if you apply in time. Coverage runs from $10,000 to $500,000, capped at the SGLI amount you carried when you left.
The trade-off is cost as you age. Per the VA’s rate table effective July 1, 2025, $100,000 of VGLI costs $6.00 a month under age 30, $50.00 at ages 55 to 59, $138.00 at 65 to 69, and $440.00 at 80 and older. Premiums step up every five years. For a healthy veteran, a private level term policy is almost always cheaper by the mid-30s. For a veteran with health problems, VGLI is worth keeping even at higher rates, because nothing private will replace it.
If you are past the 240 days but still inside 1 year and 120 days, you can apply with proof of good health. If you are past both deadlines, VGLI is gone, and the next stop is VALife.
When a private policy beats VALife
VALife is a good program, but it is not the right answer for everyone. Here are the situations where I point veterans toward a private policy instead, or in addition.
You have no service-connected rating
VALife requires a rating. If you served but never filed a claim, or filed and were denied, you are not eligible. You can file a claim now and apply for VALife once a rating comes through, but that process takes months. In the meantime, a private policy is the only option. If you were declined for life insurance elsewhere, guaranteed issue is still available.
You need more than $40,000
VALife caps at $40,000 total. A veteran with a mortgage, a younger spouse, or kids still at home needs more. The right move is usually VALife for the guaranteed piece plus a private policy for the rest, or a single larger private policy if your health allows it.
You are healthy enough to skip the waiting period
This is the one people overlook. A simplified issue policy asks a handful of yes-or-no health questions. If you can answer no to the serious ones, you get full coverage from day one and often a lower premium than VALife. A 65-year-old with a 10% rating for hearing loss and otherwise decent health should not accept a 2-year wait when a day-one policy is on the table.
You are over 80
With rare exceptions, VALife closes at 81. Private guaranteed issue carriers go to 85 (exact range varies by carrier), so a veteran at 82 or 84 who needs a small policy will need to go private.
You want the ability to borrow against the policy
VALife builds cash value but the VA states plainly that it does not offer policy loans. Most private whole life policies, including guaranteed issue, do allow loans against cash value after a few years.
What VA burial benefits actually cover
Many families assume the VA pays for a veteran’s funeral. It helps, but the help is smaller than most people expect, and that gap is exactly what a small life insurance policy is for.
| Benefit (deaths on or after Oct. 1, 2025) | Amount |
|---|---|
| Burial allowance, non-service-connected death | Up to $1,002 |
| Plot or interment allowance (burial outside a national cemetery) | Up to $1,002 |
| Burial allowance, service-connected death | Up to $2,000 |
| Burial in a VA national cemetery | No cost to the family for the gravesite, opening and closing, a government headstone or marker, perpetual care, and a burial flag |
| Headstone or marker allowance (private cemetery) | Up to $441 |
Now set that against the bill. The National Funeral Directors Association’s most recent price study puts the median cost of a funeral with viewing and burial at about $8,300, and a funeral with viewing and cremation at about $6,280. Those figures do not include the cemetery plot, vault, flowers, or obituary. A veteran buried in a national cemetery saves the plot and marker costs, but the funeral home’s bill is still there.
So a non-service-connected death typically leaves a family with a $1,002 allowance against a $6,000 to $9,000 expense, and the allowance is a reimbursement claimed after the fact, not money paid up front. The burial allowance also has eligibility rules of its own: the veteran generally must have been receiving VA compensation or pension, or died in VA care, or died from a service-connected condition. A $10,000 to $20,000 policy is sized to close that gap. Our final expense and burial insurance guide covers how to size it.
Questions to answer before you sign anything
- Do I have a VA disability rating, even 0%? If yes, get a VALife quote from VA.gov before looking anywhere else.
- Did I separate from service in the last 240 days? If yes, convert SGLI to VGLI now, before the window closes.
- Could I answer no to the health questions on a simplified issue application? If yes, day-one coverage may cost less than a 2-year-wait policy.
- How much do I actually need? Subtract national cemetery savings and any burial allowance from the real funeral estimate, then add any debts you want cleared.
- Am I over 80? If so, VALife is likely closed and private guaranteed issue is the realistic path.
- Is the person selling me this policy comparing it to VALife, or pretending VALife does not exist?
Common questions
Does a 0% disability rating really qualify me for VALife?
Yes. The VA’s eligibility page states you qualify with a service-connected disability rating “even if your rating is 0%,” as long as you are 80 or younger. A 0% rating means the VA recognized a service-connected condition but rated it as not currently disabling. It still opens VALife.
Can I have both VALife and a private policy?
Yes. Nothing in the VALife rules prevents you from holding private coverage too, and nothing in a private guaranteed issue policy asks about VA coverage. Many veterans use VALife for the first $40,000 and a private policy for anything above that.
What happens if I die during the VALife 2-year waiting period?
The VA pays your beneficiary every premium you paid plus interest. The VA sets the interest rate each year; it is 4.23% for deaths in 2026. After the two years, the full face amount is paid. This works the same way as most private guaranteed issue policies.
Is VALife cheaper than private guaranteed issue insurance?
Usually, yes. The VA’s fact sheet says VALife rates are competitive with or better than private guaranteed acceptance coverage. At age 65, VALife charges $62.00 a month for $10,000. Compare that to any private guaranteed issue quote you receive at the same age and coverage before deciding.
I already have S-DVI. Should I switch to VALife?
Be careful. If you apply for VALife on or after January 1, 2026, your S-DVI ends the day the VA approves your VALife application, and you then sit in VALife’s 2-year waiting period with no full coverage. If your S-DVI has a premium waiver, that waiver does not carry over. For many older veterans with S-DVI, keeping it is the safer choice. Call the VA Insurance Center before making a change.
Will the VA pay for my funeral?
Only partly. For a non-service-connected death on or after October 1, 2025, the VA pays up to $1,002 toward burial and funeral costs plus up to $1,002 for a plot if you are not buried in a national cemetery. Burial in a national cemetery itself is free for eligible veterans. The funeral home’s charges, which run several thousand dollars, are still the family’s responsibility.
Can my spouse get VALife?
No. VALife is only for the veteran with the service-connected rating. A spouse who needs coverage would look at a private policy. If the spouse is in reasonable health, a simplified issue or level policy will almost always cost less than guaranteed issue.
Sources
- U.S. Department of Veterans Affairs, Veterans Affairs Life Insurance (VALife): eligibility, benefits, and premium rate tables (updated May 15, 2026)
- Veterans Benefits Administration, VALife fact sheet
- U.S. Department of Veterans Affairs, Veterans’ Group Life Insurance (VGLI): eligibility and monthly premium rates as of July 1, 2025 (updated March 18, 2026)
- AARP, Burial Benefits for Veterans: Eligibility, Costs and Allowances (updated April 6, 2026), citing VA burial allowance figures effective October 1, 2025
- Congressional Research Service, Veterans Affairs Life Insurance (VALife), In Focus IF13213
- MassMutual, The costs of funerals, citing National Funeral Directors Association median funeral cost data (2023 General Price List Study)
The bottom line
If you have a VA disability rating of any percentage and you are 80 or younger, apply for VALife before you buy a private guaranteed issue policy. It is the same kind of coverage, the rates are published, and they are usually lower. If you separated in the last 240 days, convert your SGLI to VGLI first, because nothing private will match it for a veteran with health problems. Private guaranteed issue is the right choice only if you have no rating, are over 80, or need coverage above the $40,000 VALife cap, and even then, check whether a simplified issue policy with day-one coverage will take you.
If you want a second opinion on where you fit, request a free quote or call (215) 999-3168. I will tell you if the VA is the better deal.
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