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Are you a disabled veteran looking for the best life insurance options to protect your family and build a secure legacy?
You’re not alone.
Choosing the right life insurance can be frustrating and overwhelming, especially with a service-connected disability rating—including mental health conditions—adding complexity to your eligibility and approval.
But don’t worry—I’m here to make it simple!
In this post, Brian Reese the VA Claims Insider will walk you through two outstanding life insurance options designed specifically with disabled veterans in mind, both of which I use personally.
These options offer the coverage, flexibility, and peace of mind that every veteran and their family deserve.
Let’s jump in and find the right life insurance for you!
Table of Contents
Summary of Key Points
- VALife Insurance: VALife provides guaranteed acceptance whole life insurance for disabled veterans with service-connected disabilities rated at 0% or more, offering $10,000 to $40,000 in coverage with no medical exams. However, it has a two-year waiting period before full coverage takes effect and a $40,000 coverage limit, which may be insufficient for some veterans.
- Additional Coverage Needs: Disabled veterans requiring more than $40,000 in coverage should consider private insurers or non-profits like AAFMAA, which offer higher coverage options up to $1,000,000 and specialized policies for the military community.
- Key Factors for Choosing Life Insurance: When selecting life insurance, disabled veterans should evaluate factors such as coverage amount, affordability, portability, guaranteed acceptance options, and the provider’s experience in serving veterans. Ensuring the right fit will provide long-term security and peace of mind for their families.
#1. Veterans Affairs Life Insurance (VALife)
Veterans Affairs Life Insurance also known as (VALife) is a guaranteed acceptance whole life insurance program designed for veterans with service-connected disabilities rated at 0% or higher.
This program offers coverage options ranging from $10,000 to $40,000 in increments of $10,000.
Importantly, there are no health questions or medical exams required to qualify, making it accessible to all eligible veterans.
However, there is a two-year waiting period before the full coverage amount takes effect, during which time only the premiums paid plus interest would be returned to the beneficiary if the insured passes away.
Once in effect, the policy offers lifelong coverage with fixed premiums that do not increase over time.
The primary limitation of VALife insurance is its coverage cap of $40,000, which may fall short of the needs of most disabled veterans seeking substantial financial protection for their families.
If you require coverage beyond $40,000, you’ll need to explore additional options through private insurers or non-profit organizations that offer expanded life insurance plans specifically tailored to veterans.
Basic Eligibility for VALife Insurance
- If You’re 80 or Younger: You qualify for VALife if you have any VA service-connected disability rating, even if it’s 0%. There’s no deadline to apply after receiving your rating.
- If You’re 81 or Older: You may still qualify if:
- You applied for VA disability compensation before turning 81,
- After turning 81, you received a rating for that same disability,
- You apply for VALife within 2 years of being notified of your disability rating.
How Much Does VALife Cost?
Premiums vary by your age when you applied for VALife as well as your total coverage amount.
For example, I applied at 40 years old, so I currently pay $88.00/month for $40,000 worth of coverage.
See the full monthly and annual price list here.
#2. American Armed Forces Mutual Aid Association (AAFMAA) Life Insurance for Disabled Veterans
Founded in 1879, the American Armed Forces Mutual Aid Association (AAFMAA) is the nation’s oldest non-profit organization dedicated to providing financial solutions for military families and veterans.
AAFMAA offers a range of services, including expert advice, insurance, financial planning, investments, mortgages, survivor assistance, and other valuable benefits to support those who serve.
Click here to view all AAFMAA life insurance options for the military community.
Disclosure: VA Claims Insider and Brian Reese have no affiliate relationship with AAFMAA, and links included are not affiliate links. We are simply sharing our personal experience with life insurance options available through AAFMAA.
Term Life Insurance Options
BeyondBasic®
- Servicemembers who have recently been accepted in (or completed) a military career enhancing school including officer training, flight school and many others, and,
- Have a qualifying military physical conducted within the last 9 months, and,
- Are active-duty, National Guard or Reserves
What It Offers:
- Guaranteed acceptance — no medical underwriting
- $100,000 of coverage
- Supplemental to SGLI
- Renewable every 5 years to age 70
BeyondBasic® is a registered trademark of the American Armed Forces Mutual Aid Association (AAFMAA)
Simple Term
- Active Duty, National Guard, Reserve, Veterans, Retirees aged 25-74
- Member Spouses aged 25-74
- Member Children aged 25-74 & Grandchildren aged 25-74
What It Offers:
- $50,000 – $200,000 coverage
- Access to exclusive AAFMAA Member benefits
- More affordable than VGLI for non-smokers
- No medical exam or lab work required
Level Term I
- Active Duty, National Guard, Reserve, Veterans, Retirees aged 18-49
- Member Spouses aged 18-49
- Member Children aged 18-49 & Grandchildren aged 18-26
What It Offers:
- $50,000 – $800,000 coverage
- $10,000 coverage on all children up to age 21 at no additional cost
- Less expensive than SGLI and stays with you after separation or retirement
Level Term II
- Active Duty, National Guard, Reserve, Veterans, Retirees aged 18-75
- Member Spouses aged 18-75
- Member Children aged 18-75 & Grandchildren aged 18-26
What It Offers:
- $50,000 – $800,000 coverage
- Up to 75% less expensive than VGLI and includes our hallmark Survivor Assistance Services
5-Year Renewable Term
- Veterans, Retirees aged 45+ years
- Member Spouses & Children aged 45+
What It Offers:
- $50,000 – $800,000 coverage
- Up to 75% less expensive than VGLI and includes our hallmark Survivor Assistance Services
Whole Life Insurance Options
Value-Added Whole Life
- Active Duty, National Guard, Reserve, Veterans, Retirees up to age 80
- Member Spouses up to age 80
- Member Children up to age 80 & Grandchildren under age 26
What It Offers:
- Premium never increases
- $5,000 increments from $10,000 to $1,000,000
- Long-term care settlement option included
Generations Plus
- Member Children & Grandchildren aged 15 days to 14 years
What It Offers:
- $10,000 – $50,000 coverage
- Low premiums, locked in when the child is young
- Coverage amount automatically doubles at age 18, with no increase in premium
Guaranteed Acceptance+
- Veterans, Retirees, their Spouses & Children, age 35-64
- Surviving Military Spouses, age 35-64
- Those who may not meet, or who do not want to endure, medical underwriting requirements
- and who do not have existing permanent life insurance coverage
What It Offers:
- $5,000 – $25,000 coverage
- No medical exam — you can’t be turned down
Wealth Builder Life Insurance
- Veterans & Military Spouses age 60+
- Surviving Military Spouses
- Member Children age 60+
- Those who might not meet medical requirements of other policies
What It Offers:
- $10,000 – $1,000,000 coverage
- Builds wealth through cash value growth
- Long Term Care Settlement Option included at no additional premium
ANNUITYLife®
- Veterans & Military Spouses age 60+
- Surviving Military Spouses
- Member Children age 60+
What It Offers:
- Everything you want from an annuity, and nothing you don’t
- NO upfront fees. NO commissions. NO surprises.
- An income stream you cannot outlive
- Financial confidence in retirement
ANNUITYLife® is a registered trademark of the American Armed Forces Mutual Aid Association (AAFMAA)
Final Expense+
- Veterans, Retirees, their Spouses & Children, age 65-85
- Surviving Military Spouses age 65-85
- Those who may not meet, or who do not want to endure, medical underwriting requirements and who do not have existing permanent life insurance coverage
- Those aging out of their current expiring term life policies
What It Offers:
- $5,000 – $25,000 coverage
- No medical exam — you can’t be turned down
How Much Does AAFMAA Life Insurance Cost?
The cost of life insurance policies from AAFMAA varies based on several key factors.
For example, I currently have an $800,000 Level II Term policy from AAFMAA and pay around $77.00/month.
- Type of Policy: AAFMAA offers various life insurance products, including term life, whole life, and specialized policies like Guaranteed Acceptance+. Each type has its own pricing structure.
- Coverage Amount: The amount of coverage you select directly influences the premium. Higher coverage amounts result in higher premiums.
- Age: Younger applicants typically receive lower premiums, as age is a significant determinant in life insurance pricing.
- Health Status: Your overall health can affect premium rates. While some AAFMAA policies, such as Guaranteed Acceptance+, do not require medical exams, others may consider health factors during underwriting.
- Nicotine Use: Nicotine users often face higher premiums due to associated health risks. AAFMAA distinguishes between nicotine and non-nicotine users in their rate structures.
- Policy Term Length: For term life insurance, the duration of the policy term (e.g., 10, 20, or 30 years) impacts the premium. Longer terms generally have higher premiums.
- Optional Riders: Adding riders, such as long-term care options or accelerated death benefits, can increase the overall cost of the policy.
- Payment Frequency: The frequency of premium payments (monthly, quarterly, annually) may affect the total cost, with some payment plans offering discounts.
Life Insurance for Disabled Veterans Comparison Chart
| Insurance Plan | Eligibility | Coverage Amount | Key Benefits |
|---|---|---|---|
| VALife (Government) | Veterans with any service-connected disability rating, age 80 or younger Or veterans age 81+ who meet specific criteria | $10,000 – $40,000 | Guaranteed acceptance, no medical exams, lifelong coverage, fixed premiums |
| BeyondBasic® (AAFMAA) | Servicemembers accepted to or who have completed a military career-enhancing school, and Have a qualifying military physical within the last 9 months Active-duty, National Guard, or Reserves | $100,000 | Guaranteed acceptance, no medical underwriting, supplemental to SGLI, renewable every 5 years up to age 70 |
| Simple Term (AAFMAA) | Active Duty, National Guard, Reserve, Veterans, Retirees aged 25-74 Spouses, children, and grandchildren aged 25-74 | $50,000 – $200,000 | More affordable than VGLI for non-smokers, no medical exam, access to exclusive AAFMAA Member benefits |
| Level Term I (AAFMAA) | Active Duty, National Guard, Reserve, Veterans, Retirees aged 18-49 Spouses aged 18-49; children up to age 49; grandchildren up to age 26 | $50,000 – $800,000 | Lower cost than SGLI, stays with you after separation or retirement, includes $10,000 coverage on all children up to age 21 at no additional cost |
| Level Term II (AAFMAA) | Active Duty, National Guard, Reserve, Veterans, Retirees aged 18-75 Spouses aged 18-75; children aged 18-75; grandchildren up to age 26 | $50,000 – $800,000 | Up to 75% less expensive than VGLI, includes Survivor Assistance Services |
| 5-Year Renewable Term (AAFMAA) | Veterans, Retirees, and family members aged 45+ | $50,000 – $800,000 | Up to 75% less expensive than VGLI, includes Survivor Assistance Services |
| Value-Added Whole Life (AAFMAA) | Active Duty, National Guard, Reserve, Veterans, Retirees up to age 80 Spouses and children up to age 80; grandchildren under age 26 | $10,000 – $1,000,000 in $5,000 increments | Premium never increases, includes long-term care settlement option |
| Generations Plus (AAFMAA) | Children and grandchildren aged 15 days to 14 years | $10,000 – $50,000 | Low, locked-in premiums, coverage doubles at age 18 with no premium increase |
| Guaranteed Acceptance+ (AAFMAA) | Veterans, Retirees, Spouses, and children aged 35-64 Surviving Military Spouses aged 35-64 | $5,000 – $25,000 | No medical exam, guaranteed acceptance |
| Wealth Builder Life Insurance (AAFMAA) | Veterans, Military Spouses, and family members aged 60+ Surviving Military Spouses | $10,000 – $1,000,000 | Builds wealth through cash value growth, includes long-term care settlement option at no additional premium |
| ANNUITYLife® (AAFMAA) | Veterans, Military Spouses, and family members aged 60+ Surviving Military Spouses | Income stream (no set coverage amount) | No upfront fees, no commissions, provides lifetime income |
| Final Expense+ (AAFMAA) | Veterans, Retirees, Spouses, and children aged 65-85 Surviving Military Spouses aged 65-85 | $5,000 – $25,000 | No medical exam, guaranteed acceptance, ideal for end-of-life expenses |
List of Other Companies That Offer Life Insurance for Disabled Veterans
- USAA Life Insurance: USAA provides a range of life insurance products designed for military members, veterans, and their families. They offer term and whole life policies, with certain plans accommodating individuals with service-connected disabilities.
- Navy Federal Credit Union: Navy Federal offers tailored life insurance options through Navy Federal Financial Group, specifically for military members, veterans, and their families. They provide both term and whole life insurance policies with flexible coverage amounts to meet diverse needs.
- Navy Mutual Aid Association: Serving members of the Navy, Marine Corps, Coast Guard, and their families, Navy Mutual offers life insurance policies without war or terrorism clauses, ensuring coverage during military service. They provide term and whole life insurance options suitable for veterans, including those with disabilities.
- Military Benefit Association (MBA): MBA offers group term life insurance plans for military personnel and veterans. Their policies are designed to be affordable and accessible, with options that may be suitable for disabled veterans seeking coverage.
- Armed Forces Benefit Association (AFBA): AFBA provides life insurance solutions for military members and veterans, including those with service-connected disabilities. They offer term life insurance policies with benefits that continue after separation from service.
What Disabled Veterans Should Look for When Choosing Life Insurance
When choosing life insurance, disabled veterans should consider the following key factors to ensure they select a policy that provides sufficient coverage, affordability, and peace of mind for their families:
- Coverage Amount: Evaluate how much coverage you need based on your family’s financial obligations, including debt, education costs, and income replacement. Ensure the policy offers enough to protect your loved ones.
- Guaranteed Acceptance Options: Some policies, like VALife, offer guaranteed acceptance without health exams. If you have a significant service-connected disability, look for plans that provide coverage without strict underwriting.
- Affordability and Premium Stability: Check that the premiums fit within your budget. For whole life policies, look for fixed premiums that won’t increase over time, providing consistent affordability.
- Portability: Choose a plan that remains valid even if you move or change employment. Policies designed for veterans, such as those offered by USAA or AAFMAA, often provide this flexibility.
- Riders and Additional Benefits: Look for policies that offer add-ons or riders, such as long-term care coverage, accelerated death benefits, or disability waivers, which can be highly valuable for veterans.
- Survivor Assistance Service: Many organizations, especially military-focused ones, include survivor assistance services, helping families navigate benefits and claim processes, which can be a meaningful added benefit.
- Company Experience with Disabled Veterans: Seek insurers with experience in serving veterans and military families. These providers are more likely to understand your unique needs and offer policies that align with your circumstances.
- Policy Flexibility: Consider policies that allow you to adjust your coverage or convert from term to whole life if your needs or budget change over time.
- Exclusions and Limitations: Carefully review any exclusions, such as clauses on pre-existing conditions, mental health, or disability status, to avoid unexpected coverage gaps.
- Claims Process and Support: Look into the provider’s reputation for claims handling. A smooth claims process with supportive customer service can be critical during a challenging time for your family.
By focusing on these factors, disabled veterans can find a life insurance policy that effectively meets their needs and ensures financial security for their families.
Frequently Asked Questions (FAQs): Life Insurance for Disabled Veterans
1. What types of life insurance are available for disabled veterans?
Disabled veterans have access to a variety of life insurance options, including government programs like Veterans Affairs Life Insurance (VALife) and Veterans’ Group Life Insurance (VGLI), as well as policies from private insurers and non-profits such as AAFMAA, USAA, and Navy Mutual. These policies range from term and whole life insurance to final expense and wealth-building plans.
2. Can I get life insurance if I have a service-connected disability?
Yes, many life insurance programs are designed specifically for veterans with service-connected disabilities. For example, VALife offers guaranteed acceptance with no health questions or medical exams required. Private organizations, like AAFMAA and Navy Mutual, also offer policies tailored to disabled veterans that do not require extensive medical underwriting.
3. What is guaranteed acceptance life insurance?
Guaranteed acceptance life insurance is a policy that does not require a medical exam or health questionnaire. This makes it easier for disabled veterans, especially those with service-connected health conditions, to secure life insurance coverage. VALife and AAFMAA’s Guaranteed Acceptance+ are examples of plans that offer this type of coverage.
4. How much life insurance coverage do I need?
The amount of coverage you need depends on your family’s financial obligations, including debts, income replacement, education costs, and future expenses. Many veterans choose coverage between $100,000 and $500,000, while final expense plans may be sufficient if you’re only looking to cover funeral and end-of-life expenses.
5. Are there life insurance options that don’t require a medical exam?
Yes, several life insurance policies available to veterans don’t require a medical exam. VALife, AAFMAA’s Guaranteed Acceptance+, and USAA’s term life options often offer coverage without medical underwriting, especially for non-smokers.
6. How does VALife work, and who is eligible?
VALife is a whole life insurance program from the Department of Veterans Affairs, designed for veterans with a service-connected disability rating, even at 0%. It offers coverage up to $40,000 with guaranteed acceptance and no medical exams. Veterans age 80 or younger are eligible, while those over 81 may qualify if they meet specific requirements.
7. What are my options if I need more than $40,000 in coverage?
If you require coverage beyond the $40,000 limit offered by VALife, private organizations like AAFMAA, Navy Mutual, and USAA provide higher coverage amounts, often up to $1,000,000. These plans offer flexible options and are specifically tailored to veterans and their families.
8. How does term life insurance differ from whole life insurance?
Term life insurance provides coverage for a set period (e.g., 10, 20, or 30 years) and is typically more affordable. Whole life insurance, on the other hand, offers lifelong coverage with fixed premiums and often builds cash value over time. Veterans can choose based on their coverage needs, budget, and long-term goals.
9. Can I keep my life insurance coverage after leaving the military?
Yes, many life insurance policies for veterans, including those from AAFMAA and Navy Mutual, are portable, meaning they remain in effect after separation or retirement from the military. VGLI, for example, allows veterans to convert their Servicemembers’ Group Life Insurance (SGLI) to a post-service plan.
10. What is final expense insurance, and is it a good option for veterans?
Final expense insurance is a type of life insurance designed to cover end-of-life costs, such as funeral expenses. For veterans seeking a small coverage amount ($5,000 to $25,000) specifically for these purposes, final expense plans like AAFMAA’s Final Expense+ are affordable and often do not require medical exams.
11. Are there any benefits to choosing a life insurance provider that specializes in veterans?
Yes, life insurance providers with a focus on veterans, like AAFMAA and Navy Mutual, are more familiar with the unique needs of military families. They often offer military-specific benefits, such as coverage during active duty, no war clauses, and Survivor Assistance Services, making the process smoother for veterans and their families.
12. What should I consider when choosing life insurance as a disabled veteran?
When selecting life insurance, consider factors like coverage amount, premium affordability, portability, guaranteed acceptance options, and whether the policy offers additional benefits like Survivor Assistance Services. Choosing a provider experienced with veterans can also ensure your policy meets your unique needs.
13. Can I have multiple life insurance policies?
Yes, you can have multiple life insurance policies. Many veterans choose to combine different types of policies to meet their unique financial needs. For example, you might have a government-provided policy, like VALife or VGLI, alongside a private policy from a provider such as AAFMAA, USAA, or Navy Mutual. This ensures the proper amount of coverage.
About the Author
Brian Reese
Brian Reese is a world-renowned VA disability benefits expert and the #1 bestselling author of VA Claim Secrets and You Deserve It. Motivated by his own frustration with the VA claim process, Brian founded VA Claims Insider to help disabled veterans secure their VA disability compensation faster, regardless of their past struggles with the VA. Since 2013, he has positively impacted the lives of over 10 million military, veterans, and their families.
A former active-duty Air Force officer, Brian has extensive experience leading diverse teams in challenging international environments, including a combat tour in Afghanistan in 2011 supporting Operation ENDURING FREEDOM.
Brian is a Distinguished Graduate of Management from the United States Air Force Academy and earned his MBA from Oklahoma State University’s Spears School of Business, where he was a National Honor Scholar, ranking in the top 1% of his class.
