VA Life Insurance 2023: Everything You Need to Know

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VA life insurance is a benefit provided by the Department of Veterans Affairs for veterans, service members, and their families. It’s important to understand how this benefit works and what changes are coming in 2023.

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What is VA Life Insurance?

VA life insurance is a policy that provides financial protection for the insured’s family in the event of their death. It can also provide benefits for the insured if they become disabled or terminally ill.

There are two main types of VA life insurance: Servicemembers’ Group Life Insurance (SGLI) and Veterans’ Group Life Insurance (VGLI). SGLI is available to active-duty service members, while VGLI is available to veterans who have separated from the military.

Servicemembers’ Group Life Insurance (SGLI)

SGLI is a term life insurance policy that provides coverage for up to $400,000. The cost of the policy is based on the service member’s age and the amount of coverage they choose. Premiums are deducted automatically from their pay.

Service members can also elect to add Family SGLI, which provides coverage for their spouse and children.

Veterans’ Group Life Insurance (VGLI)

VGLI is a renewable term life insurance policy that provides coverage for up to $400,000. It’s available to veterans who have separated from the military and have SGLI coverage or have had it in the past.

The cost of VGLI is based on the veteran’s age and the amount of coverage they choose. Premiums can be paid monthly, quarterly, semi-annually, or annually.

Changes Coming in 2023

Starting in 2023, the Department of Veterans Affairs will be transitioning from its current life insurance system to a new one called the Veterans Insurance and Indemnity Compensation (VIIC) program.

The VIIC program will offer three types of insurance policies: term life, permanent life, and a hybrid policy that combines elements of both. The policies will be available to veterans, service members, and their families.

Term Life

Term life insurance provides coverage for a set period of time, typically 10-30 years. The premiums are typically lower than permanent life insurance, but the policy does not accumulate cash value.

Permanent Life

Permanent life insurance provides coverage for the insured’s entire life. It can also accumulate cash value over time, which can be borrowed against or used to pay premiums.

Hybrid Policy

The hybrid policy combines elements of both term and permanent life insurance. It provides coverage for a set period of time, but it also accumulates cash value over time.

FAQ

Question
Answer
Who is eligible for VA life insurance?
Veterans, service members, and their families are eligible for VA life insurance.
What types of VA life insurance are available?
There are two main types of VA life insurance: SGLI and VGLI. Starting in 2023, the VIIC program will offer term life, permanent life, and a hybrid policy.
How much coverage can I get?
SGLI and VGLI provide coverage for up to $400,000. The amount of coverage available through the VIIC program will depend on the type of policy you choose.
How much does VA life insurance cost?
The cost of VA life insurance varies based on the type of policy, the amount of coverage, and the age of the insured. Premiums for SGLI and VGLI are deducted automatically from the service member’s pay.
When do the changes to the VA life insurance program take effect?
The changes to the VA life insurance program will take effect in 2023.

Conclusion

VA life insurance is an important benefit for veterans, service members, and their families. It provides financial protection in the event of the insured’s death or disability. Starting in 2023, the VA will be transitioning to a new life insurance system called the VIIC program, which will offer three types of policies: term life, permanent life, and a hybrid policy.

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