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VA Life Insurance Premiums
Premium Rates (how are they calculated?)
Payment of Premiums
Different Ways you may Pay Premiums (Premium Options)
Use your dividend to pay your annual premium
Pay your premium directly
Deduct premiums from you VA benefits
Deduct premiums from your retired service pay
Use your dividend credit account to pay premiums
Deduct premiums from your checking account
Request a waiver of premiums
The premium rate on a policy is based on 3 factors:
- the age of the veteran on their birthday nearest the effective date of the policy,
- the amount of insurance,
- the plan of insurance
Here's an example-
Age: John Jones' birthday is 4/5/30. His policy was effective 11/5/50. John was 20 years, 7 months old when the policy was effective. His insurance age is 21.
Amount: John requested 10,000 in coverage.
Plan: John chose an Ordinary Life Policy
At age 21, the premium rate for Ordinary Life Insurance is $1.25 per thousand.
Johns' premium is $1.25 x 10 = $12.50 monthly. You may find out the premium rate for any plan of insurance by calling our toll-free number (1-800-669-8477.)
Premiums are due each month, however, payments may also be paid quarterly, semiannually, or annually. If you choose to pay more than one month at a time, the premium will be discounted at an annual interest rate of 7.5% for the following insurance programs:
- National Service Life Insurance (V)
- Veterans Special Life Insurance (RS&W)
- Veterans Reopened Life Insurance (J&JR)
The table below describes the different ways you may pay your premiums (premium options. We cannot tell you what option is best for you. Only you can make that decision. These general rules apply:
- Only one option can be in effect for a policy at any one time.
- If you have more than one policy, you may choose different payment options for each policy.
You may change your option at any time by calling our toll-free number (1-800-669-8477).
| Premium Options |
How it Works |
| Use Your Dividend to Pay Your Annual Premium |
Your annual dividend will be automatically used to pay your annual policy premium. Your policy must participate in dividends to choose this option.
- If your dividend is less than you annual premium,
you will receive a bill for the difference.
- If your dividend is more than your annual premium,
the excess dividend can be:
- paid to you in cash,
OR
- used to purchase paid-up additional insurance,
OR
- paid toward a policy loan or lien if you have one.
Note: Under this option, only dividends earned on a policy can be used to pay it's premium. Dividends will not be used to pay premiums on other policies.
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| Pay Your Premium Directly |
You may send payments in the form of a check, draft, or money order payable to the VA. Payments may be made in cash to VA employees authorized to accept cash payments; however, cash sent by mail will be at the insured's own risk. Payments may also be made by a third party.
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| Deduction From Benefits Paid by the VA |
You may have your premium automatically deducted from your VA benefits (other than subsistence allowance). The following general rules apply:
- Your monthly benefits must equal or exceed the amount of the monthly premium payment.
- The authorization must be in writing over the signature of the insured, or his legal representative. Download the Deduction Authorization Form to complete your request.
The deduction from your benefit payment will be for the insurance and/or TDIP premium due for the next month. The authorization will continue in effect as long as:
- your benefit payments are enough to pay the monthly premium,
OR
- you cancel the authorization in writing,
OR
- your benefits are terminated.
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| Deduction From Retired Service Pay |
You may have your premium automatically deducted from your retired service pay. The following general rules apply:
- Your monthly benefits must equal or exceed the amount of the monthly premium payment.
- The authorization must be in writing over the signature of the insured, or his legal representative. Download the Deduction Authorization Form to complete your request.
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| Premiums paid from Dividend Credit Account |
You may use your dividend credit account to pay premiums. All you need to do is call our toll-free number (1-800-669-8477), and request that a premium be deducted from your account.
If you forget to call and request a premium withdrawal, VA will automatically deduct a monthly premium from your account 31 days after the premium due date.
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| VA MATIC |
You may have monthly premiums deducted from a checking account by electronic funds transfer. The following general rules apply:
- You must have sufficient funds in your checking account to pay a monthly premium payment on the premium due date.
- The authorization must be in writing over the signature of the insured, or his legal representative. Download the VA
MATIC Change (Changes to Bank/Checking Account) to complete your request.
A blank check with the insured's name printed on it must be sent with the Authorization form. |
| Waiver of Premiums |
You may request a waiver of premiums if:
- You are totally disabled
AND
- your disability prevents you from working,
- AND
your disability began before your 65th birthday.
The waiver applies to both insurance and disability premiums (if applicable). Download the Application for Waiver of Premiums form to complete your request.
Note: Premiums on a Supplemental Service Disabled Insurance (SRH) policy cannot be waived.
Follow this link for more information about waiver of premiums.
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