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Differences Between Life Insurance Offerings from the VA

difference between va life insurance and service-disabled veterans live insurance

The U.S. Department of Veterans Affairs is unveiling a new life insurance option for veterans on January 1, 2023. What will the differences be between this new option – known as VALife Insurance – and the Service-Disabled Veterans Life Insurance that’s already being offered?

A Brief Look at VALife Insurance

The new VALife Insurance program will be offered starting January 1, 2023, and is said to be a cheaper option than many civilian options of the same caliber. Available to veterans who are 80 years of age and younger who have service-connected disabilities, this option will provide up to $40,000 of whole life insurance.

Guaranteed acceptance is a hallmark of the program and interested veterans will not have to submit to a medical examination. Veterans who are 80 and younger are eligible to apply for VALife Insurance at any time, while veterans who are 81 and older are eligible to apply within two years of receiving a new disability rating.

If a veteran policyholder passes away during the first two years of the policy, the beneficiary only receives a payout of all premiums that were paid, including interest. The full benefit isn’t paid until the policy has been in effect for at least two years.

A Note on Service-Disabled Veterans Life Insurance (S-DVI)

On December 31, 2022, open enrollment for the Service-Disabled Veterans Life Insurance (S-DVI) option will be closing. At that time, veterans can choose to keep their coverage under this plan or they may elect to switch to coverage under the new VALife Insurance plan.

Life Insurance Differences to Keep in Mind

There are some notable differences between VALife Insurance and Service-Disabled Veterans Life Insurance (S-DVI):


VALife: Rates are based on your age and coverage amount you choose; once your policy is set, your premiums will not increase

S-DVI: Rates are based on your age, as well as the coverage amount and coverage plan that you choose

Coverage Amounts

VALife: Up to $40,000, available in increments of $10,000

S-DVI: Basic coverage up to $10,000; $30,000 in supplemental coverage if you’re totally disabled or if you qualify for a premium waiver

Application Timelines:

VALife: There’s no timeline for applications if you’re aged 80 or under; if 81 and older, you’ll need to apply within two years of receiving a new disability rating

S-DVI: Applications must be filed by December 31, 2022 or within two years of receiving notification of a new service-connected disability


VALife: There are no premium waivers under this option

S-DVI: If you are totally disabled and unable to work, the premium is waived

Waiting Periods

VALife: There is a two-year waiting period for full coverage to begin, as is normal with all guaranteed-acceptance insurance plans

S-DVI: Full coverage begins immediately and there is no waiting period.

If you’d like to learn even more about these two life insurance plans, please have a look at the following links: