Service-Disabled Veterans Insurance (S-DVI) and What Families Should Ask About Now, Not Later

Most veterans don't think about life insurance until they have to. By then, the best options are often closed.

For service-disabled veterans, the VA has historically offered a life insurance program called Service-Disabled Veterans Insurance (S-DVI), often called "RH" insurance because of its file numbering. It's been the only realistic life-insurance option for many veterans whose disabilities made commercial insurance prohibitively expensive or unavailable.

The program has limits. It also has a successor: VALife, launched January 1, 2023, which expands eligibility and removes some of the most frustrating restrictions.

If you're family of a service-disabled veteran, this is a benefit you should be asking about now, not later.

The basics

S-DVI ("RH" insurance)

Up to $10,000 in basic coverage — a low cap by today's standards. Some veterans were eligible for an additional $30,000 in supplemental coverage if they were totally disabled.

To qualify under the original S-DVI rules:

• Must have a service-connected disability (any rating, even 0%)
• Must apply within 2 years of receiving the disability rating
• Must be in good health except for the service-connected disability

The "must apply within 2 years" rule is what kept most veterans out. By the time they thought about life insurance, the window had closed.

S-DVI is closed to new applicants as of January 1, 2023 — replaced by VALife.

VALife — the new program

Starting January 1, 2023, VALife replaces S-DVI for new enrollment. Key differences:

• No 2-year application window — veterans can enroll at any time after receiving a service-connected rating
• No medical underwriting required — service-connected veterans cannot be denied based on health
• Coverage levels: $10,000 / $20,000 / $30,000 / $40,000 (choose at enrollment)
• Whole life policy with cash value over time
• Eligibility: any veteran with a service-connected disability rating (any %), under age 81

The application is simpler. Premiums are based on age at enrollment.

Why VALife matters

For decades, service-disabled veterans had three options for life insurance:

1. Commercial life insurance — often denied or priced extremely high based on disability
2. S-DVI — limited to $10K/$30K and time-restricted
3. Nothing

VALife is the first program to provide guaranteed-issue, reasonably-priced life insurance to all service-disabled veterans regardless of when they received their rating.

For families, this is significant. A veteran with serious health issues from service can now have $40,000 in coverage that no commercial insurer would write. That's enough to cover funeral costs, immediate family expenses, and a small bridge for the surviving spouse.

It's not a replacement for full life insurance for veterans with substantial financial obligations and dependents. But for veterans who otherwise have no insurance option, it's a real benefit.

How VALife works

Eligibility

Service-connected veterans under age 81. Any service-connected rating qualifies (including 0% if rated as service-connected).

Coverage choices

$10K, $20K, $30K, or $40K. Coverage level chosen at enrollment.

Premiums

Based on age at enrollment. The earlier you enroll, the lower the premium for life. Sample monthly premiums (illustrative; verify current rates):

• Veteran age 30 with $40K coverage: ~$25-$40/month
• Veteran age 50 with $40K coverage: ~$60-$90/month
• Veteran age 70 with $40K coverage: ~$200-$300/month

These are dramatically below what a commercial insurer would charge a veteran with comparable disability profile, if they'd insure them at all.

Whole life features

VALife is a whole life policy. Premiums are level. The policy builds cash value over time. The veteran can borrow against the cash value if needed (treated as a loan, not a withdrawal).

How to apply

Veteran logs into va.gov, navigates to Life Insurance, and completes the VALife application. No medical exam. No underwriting questions about health.

The veteran should have:

• Their service-connection determination letter (or VA letter showing rating)
• Identification
• Beneficiary information

Applications are usually processed within a few weeks.

What about veterans on S-DVI now?

Veterans who already have S-DVI keep their existing coverage. They can also choose to:

• Add VALife in addition to existing S-DVI (up to combined limits)
• Convert eventually if their situation changes

There's no requirement to switch. S-DVI premiums for those already enrolled continue at their current rate.

The bigger picture: SGLI / VGLI / FGLI

To understand VALife, family should know the broader VA life insurance landscape:

SGLI (Servicemembers' Group Life Insurance)

For active-duty service members. Up to $500,000 coverage at very low premiums. Automatic enrollment unless declined.

VGLI (Veterans' Group Life Insurance)

The post-service version of SGLI. Veterans can convert SGLI to VGLI within a 1-year-and-120-day window after separation. Up to $500,000 coverage, but premiums increase with age and the veteran must apply for it (not automatic). Premiums become very high in later years.

S-DVI / VALife

For service-disabled veterans who can't get commercial coverage at reasonable rates.

FSGLI (Family SGLI)

Coverage for spouses and children of active-duty service members. $100K for spouse, $10K per child.

The flow most veteran families want to understand:

1. During service: SGLI covers the service member ($500K).
2. At separation: convert to VGLI within the deadline (more on this below). Or get commercial term life if affordable.
3. If service-connected: also enroll in VALife.

The VGLI conversion deadline most veterans miss

When a service member separates, SGLI ends. They have 240 days from separation to convert SGLI to VGLI without medical underwriting (often called the "conversion period"). After day 240 but within 1 year and 120 days, they can still convert but must answer health questions.

After 1 year and 120 days, they cannot convert SGLI to VGLI; they have to get other coverage.

For service-disabled veterans, this window is critical. The combination of:

• Convert SGLI to VGLI ($500K coverage)
• Enroll in VALife ($40K supplemental, lower-cost long-term)

Provides the most life insurance coverage available to service-disabled veterans.

Why timing matters so much

The pricing of VGLI rises significantly with age. A veteran enrolling at 30 pays manageable premiums for life. The same veteran enrolling at 60 pays substantially higher premiums.

VALife premiums are also age-based at enrollment. A veteran who enrolls at 35 with $40K coverage locks in lower premiums for life. The same veteran enrolling at 70 pays much more for the same coverage.

The single most valuable thing family can do is help the veteran enroll while they're still relatively young. Veterans who wait until they're sick or in their 70s often face premiums that don't make sense for the coverage amount.

What family should ask about now

If your veteran:

• Has a service-connected disability rating (any %)
• Doesn't currently have life insurance, OR
• Has commercial insurance that's been declined or expensive

They are likely a candidate for VALife. The conversation worth having:

"Hey, do you have life insurance? If not, the VA has a program now (VALife) that doesn't require any medical exam if you have a service-connected rating. Premiums are reasonable. Should we look at that this weekend?"

Don't push too hard — it's their decision. But name it. Many veterans don't know VALife exists.

What VALife doesn't cover

Important to be realistic:

• $40K is the cap. Veterans with substantial dependent families and mortgage obligations need more coverage than VALife provides.
• It doesn't include disability income protection, long-term care, or any health benefits — it's purely life insurance.
• It doesn't cover veterans without service-connected ratings (those veterans need commercial coverage or VGLI conversion).

For most service-disabled veterans, the right strategy is:

1. Convert SGLI to VGLI at separation for the bulk of coverage
2. Add VALife for guaranteed-issue supplemental coverage
3. Add commercial term life if budget allows and they're healthy enough to qualify

Beneficiary designations matter

Whether SGLI, VGLI, VALife, or commercial — make sure beneficiary designations are current. Specifically:

• After marriage, divorce, or remarriage
• After children are born or reach adulthood
• After any major life change

A misnamed or out-of-date beneficiary at the time of death creates significant complications. Worth a 10-minute review every year or two.

What to remember

VALife is one of the more recent VA program changes (effective January 2023) and one of the more meaningful for service-disabled veterans. It removes the application window that kept most veterans out of S-DVI, and it provides guaranteed-issue coverage at reasonable rates.

If you're family of a service-disabled veteran without life insurance, the conversation about VALife is overdue. The earlier they enroll, the lower their lifetime premiums.

For the broader life insurance picture: confirm SGLI/VGLI conversion happened on time, evaluate VALife eligibility, and check beneficiary designations. These three checks take an evening; missing them can cost the family substantially.

Apply for VALife: va.gov life insurance section. Veterans Insurance Help: 1-800-669-8477.