Veterans Get $150 Million Boost: Who Qualifies for VA’s Insurance Break - Newsweek

Hundreds of thousands of veterans are set to get a break from paying life insurance premiums later this year under a new Department of Veterans Affairs (VA) initiative that is expected to save policyholders almost $150 million.

The VA announced on Wednesday that it would introduce the first-ever three-month premium holiday for Veterans' Group Life Insurance (VGLI) holders, suspending premiums from November 1, 2026, through January 31, 2027. More than 457,000 veterans nationwide are currently enrolled in the program.

Eligible veterans will keep their full insurance coverage throughout the three months without having to make the usual payments. The VA said VGLI policyholders pay about $110 per month on average, meaning the typical veteran could save roughly $330 over the holiday—though savings could be considerably higher for those with higher-level coverage.

"VA is all about making life better and more affordable for Veterans, and this premium holiday will help the men and women who served this nation keep more of their hard-earned money," VA Secretary Doug Collins said in a news release announcing the change.

The main requirement is straightforward: A veteran's VGLI coverage must be active on November 1. Veterans whose policies are active at that point do not need to apply or take any other action. The three-month break will be applied automatically.

Veterans whose coverage is canceled or lapses by October 31 will not qualify. Anyone with overdue premiums should therefore pay the outstanding balance to prevent their policy from lapsing. The holiday itself does not wipe out any money owed prior to November.

People who join VGLI during the holiday may still receive part of the break. For example, a veteran whose coverage begins in November must make the first payment needed to activate the policy but would then have December and January premiums waived. Someone whose coverage starts in December will receive the January break. Coverage beginning on or after January 1, 2027, would not qualify.

Veterans who have already paid ahead will also receive the benefit, with premiums already paid for November through January being credited toward future bills, while veterans who mistakenly make a payment during the holiday can request a refund.

VGLI is a VA-backed term life insurance program that allows eligible former service members to continue life insurance coverage after leaving the military.

Veterans can receive between $10,000 and $500,000 in coverage, generally based initially on the Servicemembers' Group Life Insurance coverage they had while serving. VGLI premiums depend on both the policyholder's age and the amount of coverage.

Former service members generally have one year and 120 days after leaving the military to apply. Those who apply within 240 days can obtain coverage without having to provide evidence that they are in good health.

The program has grown slightly in recent years. VA figures showed about 437,500 VGLI policyholders in fiscal 2020 and more than 453,700 by fiscal 2024. The department now says enrollment has surpassed 457,000.

How much veterans enrolled in the program can save varies as VGLI premiums rise with age and greater coverage, which is available in $10,000 increments up to $500,000.

Under the VA's current rates, a veteran age 29 or younger with $500,000 in coverage normally pays $30 per month, which would mean a $90 saving over the full holiday. Someone aged between 40 and 44 with $250,000 of coverage pays $35 a month and would save $105.

A policyholder between 50 and 54 with $250,000 of coverage normally pays $72.50 a month, meaning a total of $217.50 in savings between November and January. A veteran aged 60 to 64 carrying the maximum $500,000 policy pays $425 per month and would save $1,275 in premiums over the three months.

For a veteran aged 70 to 74, $100,000 of coverage costs $215 per month, making the three-month benefit worth $645. Meanwhile, someone aged 75 to 79 with $500,000 in coverage pays $1,925 a month and could save $5,775 during the holiday.

The break applies only to those who have VGLI. Other VA-related insurance programs—including Servicemembers' Group Life Insurance (SGLI), Family SGLI, VALife and Service-Disabled Veterans Insurance—are not included. The VA said it currently has no plans to introduce a similar premium holiday for those programs.

Contact Newsweek editors on this story: Ben Kelly and Shakeema Edwards.