VA Offers Free Life Insurance Holiday

PHOTO CAPTION: C.W. Bill Young VA Medical Center in Bay Pines, Florida. More than 457,000 veterans enrolled in Veterans’ Group Life Insurance will receive a three-month premium holiday beginning Nov. 1, 2026. (U.S. Department of Veterans Affairs photo)

More than 457,000 veterans enrolled in Veterans’ Group Life Insurance will temporarily stop paying premiums this fall while keeping their coverage in place.

The Department of Veterans Affairs announced its first-ever VGLI premium holiday, eliminating premium payments for eligible policyholders for three months — November 2026, December 2026 and January 2027.

Coverage will continue normally during the three-month period.

For most veterans already enrolled in VGLI, there is also nothing they need to apply for.

Veterans whose VGLI policies are active on Nov. 1 will automatically receive the premium holiday. Policies that have been cancelled or lapsed on or before Oct. 31 are not eligible.

The savings can be significant.

VA says more than 457,000 veterans participate in VGLI. Premiums vary based on a veteran’s age and amount of coverage, but the average participant currently pays about $110 per month.

That means the average veteran receiving all three free months will save about $330.

Across the entire program, VA estimates veterans will save nearly $150 million in premium payments.

VGLI is a term life insurance program allowing eligible former service members to continue life insurance coverage after leaving the military. Coverage is available in amounts ranging from $10,000 to $500,000, with premiums generally determined by the insured veteran’s age and amount of coverage.

Veterans using automatic payments do not need to make changes. VA says AutoPay deductions will automatically pause for premiums covered by the holiday and resume afterward.

Veterans who have already paid premiums covering November, December or January will not lose the benefit.

Those payments can automatically be applied as a credit toward future premiums, or the veteran can request a refund.

There is one important exception for veterans using their bank’s recurring bill-pay service rather than VGLI AutoPay.

Those veterans will need to contact their bank to stop recurring payments beginning Nov. 1 and restart them Feb. 1. Payments accidentally sent during the premium holiday can still be credited or refunded.

Recently enrolled veterans may also receive only part of the three-month benefit.

A veteran whose VGLI coverage begins in November must still make the initial November payment to activate the policy, but could receive free coverage in December and January. Someone whose coverage starts in December could receive January free.

The premium holiday applies only to VGLI.

It does not apply to Servicemembers’ Group Life Insurance, Family Servicemembers’ Group Life Insurance, Veterans Affairs Life Insurance or several other VA insurance programs.

After Jan. 31, normal VGLI premium payments resume.

(Source: OAF Nation)