Best Life Insurance for Disabled Veterans

Written by Life-Wealth-Win

If you are a disabled veteran, you may be wondering about the best life insurance for disabled veterans. The Veterans Administration offers several insurance programs for disa2126bled veterans. One of VA‘s programs is Service-Disabled Veterans Insurance. It is designed for people with disabilities. Veterans who might have difficulty obtaining traditional life insurance can get a small amount of coverage through this program.

Getting life insurance for disabled veteran is possible. The Americans with Disabilities Act prevents anyone from denying coverage to anyone because of their disability. Most vets can qualify for veterans’ life insurance through private life insurance companies.

If you’re looking for the best life insurance for disabled veterans, you can directly shop online or talk with one of Life Wealth Win agents to find the best rates.

You might also want to check out carriers that cater to the military like the USAA or Armed Services Mutual Benefit Association which offers special rates for veterans. USAA offers a program in which military members can convert their SGLI coverage to USAA and cover their spouses and children, unlike the VGLI.


These are the different life insurance options available exclusively to veterans:

Veterans’ Group Life Insurance (VGLI)

You are automatically enrolled in Servicemembers Group Life Insurance (SGLI) when you join the military. Unlike active service members, veterans are not automatically enrolled in Veterans Group Life Insurance. You must convert your SGLI to VGLI to get coverage of up to $400,000 worth of whole life insurance protection.

You will continue to receive SGLI for free for 120 days after you leave the service. You can convert your SGLI to VGLI without a medical exam for the next 120 days.

If you wait longer than eight months from the date of separation, you’ll need a medical exam to qualify for a new plan. If you wait for a year after your SGLI expires, you won’t be able to convert it to VGLI at all.

You can enroll the same amount of coverage you had under your SGLI plan, or a lesser amount if you like. You have the opportunity to increase your coverage every five years up to the maximum coverage amount of $400,000. Your coverage will not expire as long as you pay the premiums, but your premiums will increase every five years.

Veterans’ Group Life Insurance premium rates are more expensive than SGLI, and the monthly cost increases every five years. These plans are designed like a five-year renewable term life policies. Here’s a sample of VGLI rates with a $400,000 face amount.

  • Age 29 & Below – $32.00 per month
  • Age 30 to 34 – $40.00 per month
  • Age 35 to 39 – $52.00 per month
  • Age 40 to 44 – $68.00 per month
  • Age 45 to 49 – $88.00 per month
  • Age 50 to 54 – $144.00 per month
  • Age 55 to 59 – $268.00 per month
  • Age 60 to 64 – $432.00 per month
  • Age 65 to 69 – $600.00 per month
  • Age 70 to 74 – $920.00 per month
  • Age 75 & Up – $1840.00 per month

The youngest age category of 29 and below have rates that are higher than traditional term life insurance.

Also, the older age band have an incredibly higher rate than an average American can afford. If the veteran is in poor health, these rates may still be high compared to regular life insurance. If the veteran is in good health, he might consider commercial life insurance policies to get good rates.

Disabled Veterans’ can purchase low-cost term life insurance on the civilian market even if they are in the National Guard, Reserves or a member of the full-time military.

Veterans’ Mortgage Life Insurance (VMLI)

Veterans’ Mortgage Life insurance policy only applies to the vet with a service-related disability. Those who received a Specially Adapted Housing grant to help purchase, build or remodel a home, and also have a mortgage and title to that home.

VMLI provides up to $200,000 in coverage which pays directly to the mortgage holder in the event of veteran’s death. This benefit is not given to the beneficiary but the bank or lender. The value of the policy will gradually decrease over time as the balance to the mortgage continues to pay off.

Service-Disabled Veterans’ Insurance

One of the Veterans Administrations several benefits for disabled veterans is the Service-Disabled Veterans Insurance. It is designed to address the particular need of veterans with service-connected disabilities.

Unlike traditional life insurance which covers people who are in perfect health, the S-DVI is a life insurance for disabled for veterans with disabilities. Disabled veterans who might have difficulty obtaining traditional life insurance can get a small amount of coverage through this program.

Once a veteran gets rated as having a service-connected disability, he has 24 months to apply for S-DVI. The basic Service-Disabled Veterans Insurance plan lets disable veteran to buy up to $10,000 of coverage. If they meet additional requirements, they can also apply for Supplemental S-DVI for up to $30,000 of extra coverage.

How can you be eligible for S-DVI?

You can apply for S-DVI life insurance if you meet all of these terms:

  • You are no longer in the service
  • Your discharge was after April 24, 1951
  • Your discharge from military service was not dishonorable
  • You have a VA notification that your disability is service-related
  • You have a VA disability rating
  • Other than your service-related disability you are healthy
  • You submit your application for S-DVI within 24 months of the VA notifying you of your service-related disability

Veterans who already have an S-DVI insurance policy with a waived premium because of total disability rating can apply for Supplemental S-DVI to increase their coverage up to a total of $40,000 including basic S-DVI. If you are under 65 and fall into this category, you must apply for supplemental coverage within one year of the VA notifying you of your waiver of premiums.

Waiver of premiums is only given for the primary S-DVI coverage, but they will not waive the premiums for the Supplemental policy. You must be totally disabled and unable to work because of your disability for at least six months in a row to qualify.

Posthumous S-DVI Benefits

The Veterans Administration grants gratuitous S-DVI benefits after a veteran dies when he met the program eligibility requirements but wasn’t able to apply because of mental incompetence from a service-connected disability.

The veteran must have died before he appointed a guardian or within two years of a guardian’s appointment. The beneficiary, parents, widow or widower or children can be eligible to receive the gratuitous S-DVI benefits amounting to $10,000 with any other National Service life insurance proceeds.


Not all veterans convert to VGLI. Some veterans miss the deadline for converting their SGLI to VGLI. If you can’t get insurance through the VA, know that you still have options in the private insurance industry.

Term Life Insurance

Term life insurance is the most basic type of life insurance because it only offers pure protection without any cash value build-up within the policy. For this reason, term life is the lowest cost type of life insurance it is often very affordable. Term life insurance provides coverage for a specific number of years. The typical terms of term life are 10, 15, 20, 25, and 30 years.

These policies are often referred to as level term because the death benefit and premium stays the same throughout the term. If you take a 10-year term life policy, your beneficiary will not receive a death benefit if you die after the term expires.

Whole Life

Whole life is permanent life insurance coverage that can be kept in force for your entire life. The premium amount and death benefit is locked in and will remain the same throughout the whole life of the policy. It means that if you purchase the policy when you are young, you will still pay the same amount of premium when you get older – regardless of age or adverse health condition.

Whole life insurance also provides a death benefit and an investment component. The cash value of the policy earns dividends that can accumulate on a tax-deferred basis. You can use the cash value to pay premiums, and you can borrow against it.

Variable and Universal Life

Variable and universal life is similar to whole life insurance but offers more flexibility.

Variable life insurance offers permanent coverage and has a cash value component, and you can take part in a variety of different investment options such as equities. However, the cost of your policy can be affected by the performance of your investment either positively or negatively.

Universal life insurance also offers permanent coverage but the death benefit, the cash value, and the premiums can be adjusted to fit your circumstances in the future. You can choose how much will go to the death benefit, and how much will go to the policy’s cash value.


The  life insurance for disabled veterans cost is unique to each individual and will vary depending on several different factors. These will include your age, gender, and health condition at the time you apply for coverage. It will also be based on the type of life insurance coverage that you want, as well as the amount of death benefit you can obtain.

When you apply for a private life insurance policy, most carriers will require you to fill out an application for coverage, and go through the process of underwriting. You will be asked specific questions on the application for coverage such as:

  • Age
  • Gender
  • Height and Weight
  • Occupation and Income
  • Smoker/Nonsmoker
  • Current health condition
  • Personal Health history
  • Family health history
  • Hobbies & Travel (Do you participate in dangerous hobbies like skydiving, scuba diving or paragliding)
  • The frequency of foreign travel
  • Other Personal Risk Factors

There will be a short medical examination. A medical professional will meet you at your home or office to conduct some health tests. The testing usually takes about 30 minutes.

You will also be required to submit a blood and urine sample on the medical exam. The blood and urine samples will be tested for a different health condition that could pose specific risks to the life insurance company.

You may also require giving additional information to the insurance company for specific health conditions you may have such as hypertension or diabetes. The insurance company may also request your past medical records.

The insurance underwriters will analyze all your information to determine your coverage. If your health was determined as that of an average policyholder, you will likely be approved as a standard policyholder and will charge with an average premium rate.

If you are in excellent health and you also have a family history or excellent health, it is possible that you could be accepted at preferred rates. It could mean that you will be charged a lower premium rate for your coverage.

If you have some significant health issues, you may be approved at a substandard rating. Your premium rate will be higher than the standard policyholder.

Sometimes, substandard policyholders will have a lesser amount of coverage to lessen the amount of risk to the insurance company.

The typical life insurance ratings are Preferred, Standard, and Substandard.

There may also be additional sub-categories on each rating. Every insurance carrier has different underwriting criteria. You may be classified as substandard in some, but other insurance carriers will put you in standard rating. It is often a good idea to compare quotes from several carriers before you make a decision.

If you did not pass the underwriting and you are denied coverage due to your health, there are still other options for you to obtain the life insurance coverage you need. You can apply to a no medical life insurance policy. A non-medical life insurance policy does not require you to have a medical exam, and you will typically be required to answer a few health questions to apply for coverage.


Whether you want a whole life insurance policy that can build cash value or an affordable term life insurance, or you only need more than the maximum amount of military life insurance available, you may want to buy your own individual life insurance policy once you leave the military – particularly if you’re still young and healthy or even if you have a disability.

You might want to check insurance carriers that cater to military, like the USAA or Armed Forces Mutual Aid Association. USAA offers a program in which you can convert their SGLI coverage to USAA coverage.

Still struggling to make a decision? You can simply shop online or talk with Life Wealth Win’s agents to find the best rates. We provide the best and lowest term life or whole life insurance policies for veterans and members of the armed services and coast guard.

About Life-Wealth-Win
About Life-Wealth-Win

We work with individuals across the nation to secure the best life insurance rates.

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