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Veterans Mortgage Life Insurance

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The Veterans' Mortgage Life Insurance (VMLI) program is designed to provide financial protection to cover eligible veterans' home mortgages in the event of death. The following is a summary of the Veterans' Mortgage Life Insurance:

Veterans Mortgage Life Insurance Overview

The Veterans' Mortgage Life Insurance (VMLI) program began in 1971, The Veterans' Mortgage Life Insurance (VMLI) program provides mortgage life insurance to severely disabled veterans. It is designed to pay off home mortgages of disabled veterans in the event of their death.

If eligible VMLI provides you up to $200,000 mortgage life insurance payable to the mortgage holder (i.e., a bank or mortgage lender), in the event of your death. The amount of coverage will equal the amount of the mortgage still owed, but the maximum can never exceed $200,000. VMLI is decreasing term insurance which reduces as the amount of the mortgage reduced. VMLI has no loan or cash values and pays no dividends.
Visit the Insurance Center to get information, advice, tips and to learn more about your life, auto, renters, and long-term care insurance options.

Veterans Mortgage Life Insurance Eligibility

The insurance is restricted to those veterans who receive grants for the purchase of Specially Adapted Housing under the authority of title 38, US Code, chapter 21. Grants are available to you as a veteran if you are entitled to compensation for service-connected, permanent and total disability for one or more of the following conditions:

  1. Loss or loss of use of both legs.
  2. Blindness in both eyes plus the loss or loss of use of one leg.
  3. Loss or loss of use of one leg with residuals of organic disease or injury which affects balance or propulsion.
  4. Loss or loss of use of one leg together with the loss or loss of use of one upper extremity which affects balance or propulsion.

The VMLI insurance will be canceled for any of the following conditions:

  1. When the mortgage is paid in full.
  2. At the termination of your ownership of the property securing the loan.
  3. At your request.
  4. If you fail to submit required information.
  5. If you stop paying the premiums.

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Veterans Mortgage Life Insurance Premiums

Premiums are determined by the insurance age of the veteran, the outstanding balance of the mortgage at the time of application, and the remaining length of time the mortgage has to run. Veterans who desire insurance will be advised of the correct premium when it is determined.

Premiums must be paid by deduction from the veteran's monthly compensation or pension payments, if the veteran is receiving such payments. If such payments are not being received the veteran may make direct payments, on a monthly, quarterly, semiannual, or annual basis, to the VA Insurance Center in Philadelphia, Pennsylvania.

You can download the VMLI Brochure directly from the VA.

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