Protecting Your Legacy: A Veteran’s Guide to VA Life Insurance

Financial planning is essential for veterans transitioning to civilian life. It aims to secure their future and that of their families. Yet many veterans overlook a key element of that plan: preparing for the unexpected. Without proper coverage, families may be left unprotected in the event of illness, injury, or death.

A critical component of strong financial planning is life insurance, which provides financial security and peace of mind. The U.S. Department of Veterans Affairs (VA) offers several life insurance programs designed to meet the unique needs of veterans, service members, and their families. Programs that can make all the difference in moments of crisis.

At National Veterans Homeless Support (NVHS), we understand how crucial financial stability is to preventing homelessness. By leveraging VA life insurance benefits, veterans can protect their loved ones and build a stable foundation, no matter what life brings.

Not sure where to start? Reach out today, and we’ll walk through it together, one step at a time.

Taking Control: The Basics of Financial Planning for Veterans

Financial planning is organizing your money to meet your short- and long-term goals. It’s more than just budgeting; it’s about creating a clear plan for how you’ll save, spend, invest, and protect your income over time.

For veterans, financial planning includes managing military benefits, preparing for retirement, reducing debt, building savings, and ensuring your family is financially secure if the unexpected happens.

A strong financial plan helps you take control of your future with confidence and peace of mind.

Understanding VA Life Insurance Programs: Coverage That Serves Those Who Served

The U.S. Department of Veterans Affairs (VA) offers several life insurance options designed specifically for service members, veterans, and their families. Each program addresses different needs—whether you’re currently serving, transitioning out, or planning for long-term security.

Service Members’ Group Life Insurance (SGLI)

SGLI is a low-cost term life insurance policy automatically provided to eligible active-duty service members, including National Guard and Reserve members.

• Coverage Amount: As of March 1, 2023, the maximum benefit is $500,000, available in $50,000 increments.
• Automatic Enrollment: All eligible service members are automatically enrolled.
• Manage Your Policy: You can manage your coverage and beneficiaries through the SGLI Online Enrollment System (SOES).

Learn more on the VA’s official SGLI page. 

Veterans’ Group Life Insurance (VGLI)

VGLI allows veterans to convert their SGLI coverage into a renewable term life insurance policy once they separate from service.

• Coverage Amount: Up to $500,000, not exceeding the SGLI held at separation.
• Application Timeline: To avoid a medical exam, apply within 240 days of separation. Applications are accepted up to 1 year and 120 days after separation.
• Premiums: It is based on age and renewable every five years.

For more information, visit their official site here.

Family Servicemembers’ Group Life Insurance (FSGLI)

FSGLI extends SGLI benefits to cover spouses and dependent children of service members insured under SGLI.

• Spouse Coverage: Up to $100,000, not to exceed the service member’s SGLI amount.
• Children: Automatically covered for $10,000 at no cost.

For more information visit the VA’s official FSGLI page.

Traumatic Injury Protection (TSGLI)

TSGLI is an automatic rider added to all SGLI policies. It offers short-term financial assistance to service members who suffer serious injuries due to traumatic events.

• Eligibility: Automatically included with SGLI coverage.
• Covered Injuries: Includes severe injuries such as amputations, blindness, and burns.
• Payouts: Vary based on the extent of the injury.

Learn more on the VA’s official TSGLI page 

Veterans Affairs Life Insurance (VALife)

VALife is a new whole life insurance program launched in 2023. It offers guaranteed acceptance for veterans with any level of service-connected disability.

• Eligibility: Veterans aged 80 or under with a service-connected disability, even 0%. Veterans over 80 may qualify if they meet special criteria.
• Coverage Amount: Up to $40,000, available in $10,000 increments.
• No Medical Exam Required: Acceptance is guaranteed with no health questions or exams.
• Waiting Period: Full coverage kicks in after two years of premium payments.

Find out more here.

Veterans’ Mortgage Life Insurance (VMLI)

VMLI helps severely disabled veterans who have received a Specially Adapted Housing (SAH) grant by paying off their home mortgage in the event of their death.

• Purpose: Ensures that surviving family members can remain in their home without the burden of a mortgage.
• Eligibility: Must have a VA-approved SAH grant.
• Coverage: Pays the remaining mortgage balance, up to a maximum limit.

Visit the official VA’s VMLI page here.

If you or a loved one qualifies for a Specially Adapted Housing grant, NVHS can help you explore VMLI and guide you through the application process.Get in touch with us; we’re here to support you and your family’s future.

More Than a Policy: How VA Life Insurance Builds Long-Term Stability

Life insurance is a cornerstone of financial planning, offering several benefits:

• Financial Security for Loved Ones: Provides a tax-free death benefit to beneficiaries, ensuring they are financially supported.
• Peace of Mind: Knowing that your family is protected can alleviate stress and allow you to focus on other aspects of life.
• Support for Final Expenses: Helps cover funeral costs and other end-of-life expenses, reducing the financial burden on family members.
• Home Protection: Programs like VMLI ensure that your family can retain their home without worrying about mortgage payments after your passing.

For veterans, especially those with service-connected disabilities, these benefits are crucial in establishing long-term stability and preventing financial hardships that could lead to homelessness.

Integrating Life Insurance into Financial Planning

Effective financial planning involves assessing your current financial situation, setting goals, and implementing strategies to achieve them. Life insurance plays a significant role in this process:

• Budgeting for Premiums: Add life insurance premiums to your monthly budget to maintain continuous coverage.
• Debt Management: Use life insurance to pay off outstanding debts and relieve your family of that financial burden.
• Estate Planning: Name your beneficiaries and plan how to distribute your life insurance proceeds to support your family’s future.
• Retirement Planning: Choose life insurance policies that build cash value to use those funds during retirement.

Integrating life insurance into your financial plan can create a comprehensive strategy that safeguards your family’s financial well-being.

How to Apply for VA Life Insurance

Applying for VA life insurance varies depending on the program:

• SGLI and FSGLI: Coverage is automatic. Manage your policy through the SGLI Online Enrollment System (SOES).
• VGLI: Apply online via the VA’s website or by submitting Form SGLV 8714. Ensure you apply within the specified time frame after separation to avoid medical underwriting.
• VALife: Check eligibility and apply online through the VA’s VALife portal.
• VMLI: Apply by submitting VA Form 29-8636 through your SAH agent.

Not sure where to start? You don’t have to figure it out alone; NVHS is here to guide you, answer your questions, and help you apply for the support you deserve.

NVHS: Supporting Veterans in Financial Planning

At NVHS, we aim to eliminate veteran homelessness by providing proactive, intervention-based support. We recognize that financial instability is a significant factor contributing to homelessness.

By assisting veterans in understanding and accessing VA life insurance benefits, we aim to promote financial security and prevent homelessness.

Our services include:

• Financial Counseling: Guidance on budgeting, debt management, and integrating life insurance into financial plans.
• Benefit Navigation: Assistance in understanding and applying for VA benefits, including life insurance programs.
• Housing Support: Programs like Search and Rescue Outreach help homeless veterans transition into stable housing.

By addressing the financial challenges veterans face, we work towards a future where no veteran is left without a home.

Take the Next Step Towards Financial Security

Life insurance is more than a policy; it’s a commitment to your family’s future and a critical component of financial stability. By leveraging VA life insurance benefits, you can ensure your loved ones are protected and your legacy is secure.

Together, we can build a future where veterans have the financial security and support they deserve. Get help now!