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.

Veterans Mortgage Life Insurance Overview

The Veterans' Mortgage Life Insurance (VMLI) program began in 1971, 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 mortgage life insurance payable to the bank or mortgage lender, in the event of the veteran's 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 Military.com 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

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

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 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 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.

For When VMLI Isn't an Option

VMLI and VGLI may not be available, or may not be enough to cover your family's needs. Explore life insurance options with our free tool that compares rates and matches you to the coverage your family needs.

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VA Loan Life Insurance