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Veterans Affairs Life Insurance (VALife) will be launched in January 2023, and it will give the guaranteed acceptance of full life insurance coverage to veterans aged 80 and under with any level of a service-connected disability. Some veterans aged 81 and up may be eligible as well.
What is Guaranteed Acceptance Whole Life Insurance, and how does it work?
Guaranteed acceptance is a policy that covers you for the rest of your life and does not require a medical exam or health inquiries. It also does not have a two-year registration period. Whole life insurance covers the rest of your life as long as the premiums are paid on time. Premium rates are fixed for the policy’s life and do not increase as the policyholder matures, unlike term insurance.
What advantages does it provide?
The new program, established by Public Law 116-315, covers the requirements of service-connected veterans who may not have previously qualified for VALife insurance. VALife offers whole life insurance with the assured acceptance that lasts for the rest of a person’s life and includes the following features:
• All services are interconnected. Veterans aged 80 and under with a VA disability rating of 0% to 100% are eligible.
• Online enrollment is fully automated, with quick approvals.
• Premiums are competitive â€“ or better than what is offered in the private sector, and coverage is available in $10,000 increments up to a maximum of $ 40,000. Full face value coverage takes effect after a two-year waiting period.
• There are no medical criteria for participation.
• After the first two years of enrollment, the policy’s cash value grows over time.
• The earlier you join up, the better the rates. Premiums will never go up after they’ve been locked in.
Who is eligible to participate?
Veterans who are 80 years old or younger and have a VA disability rating of 0% to 100% are eligible for VALife, and there is no time limit on when they can apply.
Veterans aged 81 and over may apply for VALife within two years of getting a new service-connected disability rating if they meet the requirement.
What effect will this have on other VA life insurance programs?
More service-connected veterans than ever before can now get life insurance via VALife. VALife, unlike Service-Disabled Veterans Life Insurance (S-DVI), has no medical qualifications and a two-year waiting period if a veteran is under age 80.
Veterans with an S-DVI policy can keep their coverage or apply for VALife when available. If the application is submitted between January 1, 2023, and December 31, 2025, veterans can keep their S-DVI policy until the full coverage of VALife begins two years following enrollment.
After December 31, S-DVI will no longer accept new students. Even if they plan to register for VALife in the new year, veterans interested in S-DVI should apply by this date.
How do you go about applying for both?
On January 1, 2023, the VALife application will be available. Keep an eye out for updates on VALife and the application process. The application will be available online at https://www.benefits.va.gov/insurance/VALife.asp once the program is launched.
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