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Service-Disabled Veterans Insurance (S-DVI)
The Service-Disabled Veterans Insurance (S-DVI) program was established in 1951 and is still open to new issues. To be eligible for basic S-DVI, a veteran must have been released from active duty under other than dishonorable conditions on or after April 25, 1951. He/she must have received a rating for a service-connected disability (even if only 0%) and must be in good health except for any service-connected conditions. Application must be made within two years of being granted service-connection for a new disability. An increase in an existing service-connected disability or the granting of individual unemployability of a previous rated condition does not entitle a veteran to this insurance. Disabled veterans are advised to investigate other commercial insurance options prior to purchasing S-DVI. Other commercial policies, especially group plans through employers or colleges, may well be better buys. S-DVI is available in a variety of permanent plans as well as term insurance. Policies are issued for a maximum face amount of $10,000. Under certain conditions, the basic S-DVI policy provides for a waiver of premiums in case of total disability. Policyholders who carry the basic S-DVI coverage and who become eligible for a waiver of premiums due to total disability can apply for and be granted additional Supplemental S-DVI of up to $20,000. The insured has up to one year after being notified of his/her eligibility for waiver on the basic policy to apply for the Supplemental S-DVI as long as they are under 65 years of age. No waiver of premiums due to total disability can be granted on Supplemental S-DVI coverage. Veterans who are granted service-connection for a new disability may apply within two years from the date service-connection is established. VA form 29-4364, Application for Service-Disabled Veterans Life Insurance can be downloaded from this site.
Supplemental Service-Disabled Veterans Insurance
An S-DVI policyholder can fileVA Form 29-357, Claim for Disability Insurance Benefits to determine if they are eligible for waiver of premiums due to total disability. Once he/she is granted waiver of premiums, an award letter and information on applying for Supplemental S-DVI is automatically sent to the veteran, providing the veteran is under age 65. To apply for Supplemental S-DVI, the veteran must file VA Form 29-0189, Application for Supplemental Service-Disabled Veterans (RH) Life Insurance or send a letter requesting this insurance over his/her signature. They must apply for the coverage within one year from notice of the grant of waiver of premiums.
Veterans' Mortgage Life Insurance (VMLI)
The Veterans' Mortgage Life Insurance (VMLI) program provides mortgage life insurance to severely disabled veterans. To be eligible, a veteran must have received a Specially Adapted Housing Grant from VA. The purpose of such grants is to help the veteran build or modify a home to accommodate his or her disabilities. VMLI is payable only to the mortgage holder (i.e., a bank or mortgage lender), not to a beneficiary. The amount of coverage equals the amount of the mortgage still owed but the maximum can never exceed $90,000. VMLI terminates at age 70. This is decreasing term insurance which has no loan or cash values and pays no dividends. Veterans who receive a grant for the purchase of Specially Adapted Housing are advised by Loan Guaranty personnel at their interview of their eligibility for life insurance to cover the unpaid mortgage on their home. The veteran will be assisted by the Specially Adapted Housing Agent in the completion of VA Form 29-8636, Application for Veterans' Mortgage Life Insurance. If a veteran does not apply for VMLI coverage at that time a letter will be sent by VA to the veteran again informing them that they are eligible for such coverage. In addition to completing VA Form 29-8636, the veteran must provide evidence of their current mortgage balance.
Paid-Up Additional (PUA) Insurance
Policyholders who receive dividends on their policies can elect to use their annual dividends to purchase Paid-Up Additional (PUA) insurance. The only exceptions are those policies issued under the World War I insurance program (USGLI) which do not have this option available. There is no maximum face amount of PUA insurance that a policyholder may purchase with his/her dividends. PUA insurance has cash surrender and loan values and also earns annual dividends. Of course, once PUA insurance is purchased, no further premium payments are necessary to keep it in force. You can elect the PUA insurance dividend option by simply calling us (1-800-669-8477) or sending us an e-mail (click the email link at the bottom of the page) and requesting the change. Be sure to give us your policy number when you call or send e-mail.
Call Us Toll-free: 1-800-669-8477 ( Life Insurance)
1-800-827-1000 ( Other Benefits)
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Reviewed/Updated: August 12, 2002