Life Insurance for Disabled Veterans (2025 Guide): Government Options, Private Policies, and Best Choices

Disabled veterans can qualify for life insurance even with a VA disability rating from 0% to 100%. Options include government life insurance for disabled veterans (such as VGLI and VALife) and private guaranteed-issue or simplified-issue policies, depending on health, budget, and coverage goals.

This guide explains how eligibility works, compares VA vs. private life insurance, and helps veterans choose the best life insurance for disabled veterans based on real-world needs like family protection, long-term security, and funeral costs.

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What Is Life Insurance for Disabled Veterans?

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Life insurance for disabled veterans refers to policies available to U.S. military veterans with a service-connected disability rating who may face challenges qualifying for traditional civilian life insurance.

These policies fall into two main categories:

• Government life insurance for disabled veterans (VA-backed programs)
  
  
• Private life insurance (guaranteed-issue or simplified-issue plans)
  
  Importantly, having a disability does not automatically disqualify you from coverage.

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Does a VA Disability Rating Affect Life Insurance Eligibility?

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A VA disability rating does not prevent you from getting life insurance, but it does influence which options are available.

Here’s how it typically works:

• 0%–100% service-connected disability → eligible for VA programs
  
  
• Higher ratings may limit access to fully underwritten private policies
  
  
• Guaranteed-issue policies remain available regardless of health
  
  Many veterans assume they are “uninsurable” after leaving the military that’s usually not true.
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Government Life Insurance for Disabled Veterans (VA Options)

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The Department of Veterans Affairs offers several life insurance programs designed specifically for veterans, including those with disabilities.

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Veterans’ Group Life Insurance (VGLI)

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VGLI allows veterans to convert their military SGLI coverage to civilian coverage after separation.

Key features:

• Guaranteed acceptance (no health exam if enrolled on time)
  
  
• Coverage up to $500,000
  
  
• Lifetime renewable
  
  
• Premiums increase every 5 years based on age
  
  

Best for:
Veterans who recently separated and want to maintain large coverage amounts without medical underwriting.

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Service-Disabled Veterans Life Insurance (S-DVI) – Important Update

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Service-Disabled Veterans Life Insurance (S-DVI) was a VA life insurance program designed for veterans with service-connected disabilities.
However, S-DVI stopped accepting new applications after December 31, 2022.

If you already have an S-DVI policy:

• You can keep your existing coverage
  
  
• Your benefits remain in force as long as premiums are paid (unless waived)
  
  
• No new or supplemental S-DVI policies can be started
  
  S-DVI has effectively been replaced by VA Life Insurance (VALife) for new applicants.

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Can You Switch From S-DVI to VALife?

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Yes. Veterans who currently have S-DVI may apply for VALife, but timing matters.

• If you apply for VALife by December 31, 2025
  You may keep your S-DVI policy during VALife’s 2-year waiting period.
  You must pay premiums for both policies during this time.
  
  
• If you apply on or after January 1, 2026
  Your S-DVI policy will end once VALife is approved.
  You will only have VALife coverage during the waiting period.
  
  Veterans with premium waivers under S-DVI should carefully evaluate this decision before switching.

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VA Life Insurance (VALife)

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VALife replaced older VA disabled-veteran life insurance programs.

Key features:

• Guaranteed acceptance for veterans with service-connected disabilities
  
  
• No health questions
  
  
• Coverage up to $40,000
  
  
• Cash value accumulation over time
  
  
• Two-year graded benefit period
  
  

Best for:‍

Veterans with higher disability ratings who want guaranteed coverage and modest death benefits.

Special Life Insurance Options for Severely Disabled Veterans

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Veterans Mortgage Life Insurance (VMLI)

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Some severely disabled veterans may also qualify for Veterans Mortgage Life Insurance (VMLI).

VMLI is designed to:

• Help pay off a home mortgage
  
  
• Provide coverage up to $200,000
  
  
• Protect surviving family members from losing their home
  
  

Eligibility is limited to veterans who:

• Have a service-connected disability
  
  
• Qualify for a Specially Adapted Housing (SAH) grant
  
  VMLI is not a replacement for traditional life insurance, but it can be a valuable supplement for eligible homeowners.

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Private Life Insurance for Disabled Veterans

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Many disabled veterans qualify for private policies, especially if their condition is stable or well-managed.

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Guaranteed-Issue Life Insurance

Guaranteed-issue life insurance requires:

• No medical exam
  
  
• No health questions
  
  
• Approval regardless of disability
  
  

Trade-offs:

• Lower coverage limits ($10,000–$50,000 typical)
  
  
• Higher premiums
  
  
• Graded death benefit in the first 2–3 years
  
  

Best for:
Veterans with severe disabilities or multiple medical conditions who need coverage for final expenses.

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Simplified-Issue Life Insurance

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Simplified-issue policies involve limited health questions but no exam.

Advantages:

• Higher coverage than guaranteed-issue
  
  
• Lower premiums
  
  
• Faster approval than traditional underwriting
  
  

Best for:
Veterans with mild or moderate disabilities seeking family income protection.

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How Much Life Insurance Should Disabled Veterans Consider?

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Coverage needs vary, but common goals include:

• Final expenses: $15,000–$30,000
  
  
• Family income replacement: 10–15× annual income
  
  
• Mortgage or debt coverage
  
  
• Spouse and dependent support
  
  VA programs often cap coverage, which is why many veterans combine government life insurance with private policies.

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Funeral Cost Context

Funeral, burial, and cremation costs alone can exceed $7,000–$10,000, which is why many veterans choose guaranteed-issue or final-expense coverage even if they already have VA benefits.

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VA Life Insurance vs. Private Life Insurance: Key Differences

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For many veterans, the best life insurance for disabled veterans is not one policy it’s a layered approach.

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Common Myths About Life Insurance for Disabled Veterans

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“My disability makes me uninsurable.”
→ False. Guaranteed-issue options always exist.

“VA life insurance is always the best choice.”
→ Not always. It’s often a foundation, not a full solution.

“I’m too young to worry about life insurance.”
→ Younger veterans lock in significantly lower premiums.

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What Disabled Veterans Should Do Next

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If you are a disabled veteran, the most important step is not assuming you’re ineligible.

• VA programs provide guaranteed baseline coverage
  
  
• Private policies can expand protection for family and long-term security
  
  
• The right solution depends on your disability rating, age, and goals
  
  Life insurance is not about rank or rating it’s about protecting the people who depend on you.

For Furhter reading - Is It Hard to Get Federal Disability Retirement?

Frequently Asked Questions:

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Can disabled veterans get life insurance?

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Yes. Disabled veterans can qualify for both VA life insurance and private guaranteed-issue or simplified-issue policies.

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What is the best life insurance for disabled veterans?

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The best option depends on disability severity, age, budget, and coverage needs. Many veterans combine VA coverage with private policies.

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Does VA disability pay affect life insurance eligibility?

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No. VA disability compensation does not disqualify you from life insurance.

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Is government life insurance for disabled veterans enough?

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Often no. VA policies have coverage caps, so additional private coverage may be needed.

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Can older disabled veterans still qualify?

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Yes. Guaranteed-issue policies are available up to advanced ages.

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Content Disclaimer

This article is for educational purposes only and does not constitute financial or insurance advice. Eligibility, premiums, and benefits vary by provider and individual circumstances. Veterans should consult a licensed insurance professional or VA-accredited advisor before purchasing coverage.

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