Attorney
Service-disabled veterans now have access to a different life insurance program than in years past. VALife offers guaranteed acceptance coverage without medical underwriting, but the program has unique rules that affect when benefits become fully available and how much coverage you can purchase. Understanding those details can help you make informed decisions about protecting your loved ones and coordinating life insurance with your broader estate plan.
What Is VALife?
Veterans Affairs Life Insurance (VALife) is the U.S. Department of Veterans Affairs’ current life insurance program for veterans with service-connected disabilities. It replaced the Service-Disabled Veterans Insurance (S-DVI) program for new applicants in 2023.
Unlike many private life insurance policies, VALife does not require a medical exam or health questionnaire. If you meet the eligibility requirements, your application cannot be denied because of your health.
Who Is Eligible for VALife?
You may qualify for VALife if you:
- Are age 80 or younger when you apply.
- Have a VA service-connected disability rating, even if it is 0%.
- If you are age 81 or older, you may still qualify if you applied for VA disability compensation before turning 81, received your disability rating after turning 81, and apply for VALife within two years of receiving notice of that decision.
Because there is no application deadline after receiving a disability rating, eligible veterans have greater flexibility than they did under the former S-DVI program.
How Much Coverage Does VALife Provide?
VALife offers up to $40,000 in life insurance coverage.
Coverage is purchased in increments of $10,000, allowing you to choose the amount that best fits your needs. Premiums are based on your age when coverage begins and remain fixed for the life of the policy.
Although VALife can provide meaningful financial protection, many veterans find that it works best as one part of a broader estate planning strategy, particularly if they have significant financial obligations or want to leave additional assets to family members.
What Is the Two-Year Graded Death Benefit?
One of the most important features of VALife is its two-year graded death benefit.
During the first two years after your policy becomes effective, if you die, your beneficiaries generally receive all premiums paid plus interest rather than the full death benefit.
After the policy has been in force for two years, the full death benefit becomes available, provided the policy remains in effect.
How Do You Apply for VALife?
You can apply for VALife directly through the Department of Veterans Affairs.
The application process is relatively straightforward because no medical underwriting is required. After your eligibility is confirmed and your application is approved, coverage begins once your policy becomes effective and premiums are paid.
What Should Existing S-DVI Policyholders Know?
If you already have an S-DVI policy, your existing coverage generally remains in force as long as you continue paying premiums and meet the policy’s requirements.
However, your options depend on when you apply for VALife. Veterans who applied for VALife on or before December 31, 2025, could keep both policies during VALife’s two-year graded benefit period by paying premiums for each policy.
For veterans who apply on or after January 1, 2026, that option is no longer available. Once VALife is approved, the S-DVI policy ends. Before making any changes, consider how this transition may affect your insurance coverage and your broader estate planning goals.
S-DVI vs. VALife: What’s the Difference?
Although both programs serve veterans with service-connected disabilities, there are several notable differences.
| S-DVI | VALife |
| Closed to new applicants | Current VA life insurance program for eligible service-disabled veterans |
| Maximum coverage of $10,000, with some veterans eligible for supplemental coverage | Up to $40,000 in coverage |
| No graded death benefit | Two-year graded death benefit applies |
| Premium waivers may be available for qualifying policyholders | No premium waiver available |
| Policy loans are available for some permanent or reduced paid-up S-DVI policies | Policy loans are not available |
Understanding these differences can help you determine which coverage you currently have and whether additional insurance may be appropriate.
Protect Your Family With a Thoughtful Estate Plan
Life insurance is only one piece of protecting the people you care about. At Horizon Elder Law & Estate Planning, we help veterans and their families incorporate life insurance, beneficiary designations, trusts, wills, and other estate planning tools into a plan that reflects their goals. If you have questions about how VALife fits into your estate plan, contact us to discuss your options and build a strategy that supports your family’s future.