Veterans Mortgage Life Insurance (VMLI)
Regular Army: Active Duty
Benefit Fact Sheet
Summary:
Veterans Mortgage Life Insurance (VMLI) is a program that provides mortgage life insurance to severely disabled Veterans and Service members. Effective July 30, 2008, VMLI was extended to disabled active duty Service members and Service members and Veterans who suffer from a severe burn injury. It provides up to $200,000 mortgage life insurance payable to the mortgage holder in the event of the Veterans or Service members death.
Eligibility:
Active Duty Soldiers are eligible for VMLI if they have a severe disability or burn injury and have received a Specially Adapted Housing Grant. The Specially Adapted Housing (SAH) Grant is a grant to help disabled Veterans and Service members build, purchase, or modify a home to accommodate his or her disabilities. Click here to read more about this grant.
Benefit Highlights:
Coverage Available:
VMLI provides up to $200,000 in mortgage life insurance payable to the mortgage holder (i.e., a bank or mortgage lender), in the event of the Veteran's or Service member's death. The amount of coverage equals the amount of the mortgage still owed, but the maximum cannot exceed $200,000. VMLI pays no dividends and does not have loan or cash values.
VMLI Premiums are based on the age of the Veteran or Service member, the current balance of the loan, and amount of time until the mortgage is paid off. Click here to access the VMLI premium calculator which will help determine your premium amount.
Applying for Coverage:
Soldiers who receive a grant for SAH are advised by Loan Guaranty personnel of their eligibility for VMLI to cover the unpaid mortgage on their home. The SAH Agent will help the Veteran complete VA Form 29-8636, Application for Veterans' Mortgage Life Insurance.
Note: All policyholders will be automatically covered for $150,000 or their mortgage amount, whichever is lower, between October 1, 2011 and January 1, 2012, with no increase in their premium for this period. After January 1, 2012, coverage will increase to the maximum amount for which the policyholder is eligible unless a different level of coverage is elected. Premiums for the new level of coverage will be deducted from VA compensation checks beginning in February 2012.
Additional Information:
For more information, please visit the VMLI webpage maintained by the Department of Veterans Affairs at http://www.insurance.va.gov/gli/buying/VMLI.htm
Document Review Date: 2 November 2012