In just six months, the Department of Veterans Affairs will introduce a new life insurance coverage for veterans with any degree of the disability rating.
The VA reminded veterans in a blog post on Monday that, following a law passed last year, it will begin offering Veterans Affairs Life Insurance, or VALife, on Jan. 1, 2023, with applications opening that day.
Veterans who are 80 years old or younger and have a disability rating of 0 to 100 will be eligible for VA Life. Veterans over the age of 81 who applied for VA disability pay before turning 81 but did not receive a disability rating until after turning 81 will also be eligible, provided they use life insurance within two years of receiving the rating.
In a blog post, the VA states that the "new program will address the needs of veterans with a service-connected disability who may not have previously qualified for life insurance through the VA."
Guaranteed acceptance of whole life insurance is what VALife stands for. The VA stated in a blog post that the plan would have "completely automated online enrollment with quick approvals," which implies no medical tests or health inquiries are necessary to be approved. On the other hand, guaranteed acceptance plans frequently have more minor benefits and significant premiums than different types of life insurance.
VALife will pay out up to $40,000 to beneficiaries, with lower coverage available in $10,000 increments.
A VA website says insurance costs vary by the amount of coverage and age. An 18-year-old could pay $11 a month with $10,000 coverage, or a 95-year-old could pay $1,768 monthly with $40,000. Rates may change before the policy goes live, and veterans will pay the same amount regardless of their age when they register.