Veterans' Mortgage Life Insurance (VMLI): How It Works

Mortgage paperwork

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

How Does Veterans' Mortgage Life Insurance Work?

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

VMLI provides up to $200,000 in mortgage life insurance payable to the bank or mortgage lender in the event of the veteran's death. The amount of coverage equals the amount of the mortgage still owed, but the maximum can never exceed $200,000. VMLI is decreasing term insurance, meaning coverage goes down along with the amount of the mortgage. VMLI has no loan or cash values and pays no dividends.

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Who Is Eligible for Veterans' Mortgage Life Insurance?

Only veterans who receive grants for the purchase of Specially Adapted Housing are eligible for VMLI. Grants are available to veterans who 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:

  1. When the mortgage is paid in full
  2. At the termination of ownership of the property securing the loan
  3. At the veteran's request
  4. If payments stop

How Much Are Veterans' Mortgage Life Insurance Premiums?

Premiums are determined by the age of the veteran, the outstanding balance of the mortgage at the time of application, and the remaining length of time left on the mortgage. 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 no compensation payments are being paid, the veteran can make monthly payments directly to the VA.

You can download the VMLI Brochure directly from the VA.

Get the Coverage Your Family Needs

FSGLI, TSGLI, VGLI, SGLI ... the long list of acronyms and bare minimums may not be enough to cover your family's needs. Explore life insurance options with our free tool, which compares rates and matches you to the coverage you want.

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