Life Insurance for Veterans – Face Amount of New Life Insurance Policies Issued

To provide Service Disabled Life Insurance (S-DVI) protection for other than dishonorably discharged Veterans who are service disabled and who separated from active duty on or after April 25, 1951, and to provide Veterans Mortgage Life Insurance (VMLI) for Veterans and Servicemembers who have been granted Department of Veterans Affairs (VA) specially adapted housing benefits. 38 U.S.C. 1922; 38 U.S.C. 2106. These programs represent new contingent liabilities of VA and are reported under this CFDA program.

VA may issue S-DVI to a Veteran discharged under other than dishonorable conditions from active military duty, on or after April 25, 1951, who has been granted service connection for a disability, and who, if not for the service-connected disability(ies), would be otherwise insurable in accordance with established standards of good health. The Veteran must apply for coverage within two years from the date of notification of the decision granting service connection. 38 U.S.C. 1922(a). A Veteran insured under S-DVI who qualifies for waiver of premiums, is under age 65, and applies within one year from date of notice from VA that he/she qualifies for waiver of premiums, may be issued Supplemental S-DVI coverage. 38 U.S.C. 1912(a); 38 U.S.C. 1922A(a). A Veteran or Servicemember granted VA specially adapted housing benefits will be sent notice that he/she is automatically eligible to be insured for VMLI unless he/she elects in writing not to be so insured, or fails to respond within 60 days after VA sends a final request for information on which premiums can be based. 38 CFR 8a.3(a).

S-DVI proceeds are payable to designated beneficiaries. 38 U.S.C. 1917(a). S-DVI may also be granted under certain conditions to mentally incompetent Veterans who were otherwise eligible for such insurance, but due to their incompetency, died without filing an application. 38 U.S.C. 1922(b). VMLI proceeds are payable to the holder of the mortgage loan. 38 U.S.C. 2106(e).

Veterans eligible for S-DVI may apply using paper VA Form 29-4364, or apply online using VA Form 29-0151 (system generated). Veterans and Servicemembers granted specially adapted housing benefits under 38 U.S.C. 2101 are automatically approved for VMLI if they complete the application process. To complete the VMLI application process, the following documents must be submitted to VA: (1) Settlement Statement; (2) Truth-In-Lending Disclosure Statement; (3) and current mortgage account statement. Failure to provide these documents in a timely manner will result in coverage not being issued. This program is excluded from coverage under OMB Circular No. A-87. This program is excluded from coverage under 2 CFR 200, Subpart E - Cost Principles.

Life insurance settlement is paid upon the death of the insured Veteran. The S-DVI face amount of the policy, less any indebtedness on the policy, is payable to the designated beneficiary upon the insured Veteran's death, and only to the mortgage holder under VMLI coverage. See 38 U.S.C. 1917(b)(4); 38 U.S.C. 1924(c); 38 U.S.C. 2106(e).

Veterans eligible for S-DVI may apply using paper VA Form 29-4364, or apply online using VA Form 29-0151. If a Veteran is mentally incompetent, a VA-recognized fiduciary may apply on his/her behalf for S-DVI. Veterans eligible for waiver of S-DVI premiums may apply for Supplemental S-DVI coverage using VA Form 29-0190. Veterans and Servicemembers granted VA specially adapted housing benefits under 38 U.S.C. 2101 may apply for VMLI using VA Form 29-8636. The S-DVI program is excluded from coverage under OMB Circular No. A-102. The VMLI program is excluded from coverage under OMB Circular No. A-110.

Individuals will be notified of the acceptance/issuance of their insurance policy by VA or the appropriate designated entity. S-DVI is issued in amounts up to $10,000. 38 U.S.C. 1903. Supplemental S-DVI is issued in amounts up to $30,000. 38 U.S.C. 1922A. VMLI is issued in amounts up to $200,000. 38 U.S.C. 2106.

Approvals/disapprovals will be issued from 15 to 30 days upon application for Service-Disabled Veterans Insurance after VA's notice of the service-connected rating. Veterans Mortgage Life Insurance is effective immediately upon approval of a specially adapted housing grant.

In the event of a denial or disagreement, a notification letter will advise of applicable review/appeal options, associated filing requirements and time limits.