How VA Disability Ratings Affect Your Life Insurance Options

Reviewed September 7, 2026.

A Department of Veterans Affairs disability rating does not automatically determine whether a private life insurer will approve an application or what it will charge. Private insurers generally evaluate the underlying medical and functional information under the rules for the specific product. Veterans may also have VA-administered options with separate eligibility rules and deadlines.

After separation, Servicemembers' Group Life Insurance generally continues at no cost for 120 days. Some totally disabled service members may qualify for an SGLI Disability Extension for up to 2 years. Review the current VA SGLI guidance before relying on a deadline or benefit.

What a VA Disability Rating Means

VA assigns disability ratings using evidence in the claim and, when required, a compensation and pension examination. A rating measures the severity of a service-connected condition for VA benefit purposes. When a veteran has more than one rating, VA uses its non-additive "whole person" method to calculate the combined rating.

A VA percentage is not a medical diagnosis or a universal private-insurance rate class. See the VA explanation of disability ratings.

What Private Life Insurers May Review

Depending on the carrier, product, state, and amount of coverage, underwriting may consider application answers, diagnoses, treatment history, medications, physician records, laboratory or examination results, tobacco use, occupation, driving history, and other permitted risk information. Not every product uses every source, and no single VA rating produces the same result at every insurer.

With the applicant's authorization, an MIB member insurer may check an MIB Consumer File, if one exists. MIB contains coded information reported by member companies; it is not a complete medical record and cannot be the sole basis for an adverse underwriting decision without further investigation. Application questions should be answered completely and accurately.

How Health Conditions Are Evaluated

Private insurers may request condition-specific details such as the date of diagnosis, severity, treatment, follow-up, medications, hospitalizations, recent symptoms, and functional impact. For example, an insurer reviewing a respiratory condition may request different information than it would for a mental-health or musculoskeletal condition.

These examples do not predict an approval, denial, or rate class. Underwriting guidelines and available products vary among insurers and can change. Accelerated or no-exam processes may still use application answers and external data. The NAIC overview of accelerated underwriting explains how some processes may forgo a traditional examination while using other information. For general context, see How Life Insurance Underwriting Works.

VA Combined Ratings and Private Underwriting Are Different

VA combined ratings are not calculated by simply adding percentages. Under VA's whole-person method, a 50% rating followed by a 30% rating produces 65%, which VA rounds to a 70% combined rating. The VA disability-rating guide explains the method and links to the combined-ratings table.

Private life insurers do not generally convert that combined percentage directly into a rate class. They evaluate the information required for the particular application and product.

Schedular Ratings, P&T Status, and TDIU

A 100% schedular disability rating, Permanent and Total status, and Total Disability based on Individual Unemployability are different VA determinations. A 100% schedular rating does not by itself establish that a veteran is unemployable. TDIU may pay disability compensation at the 100% rate without changing the underlying schedular rating.

VA's common schedular pathway for TDIU requires either one service-connected disability rated at least 60%, or multiple disabilities with one rated at least 40% and a combined rating of at least 70%; VA also describes exceptions. These are VA benefit thresholds, not automatic private-insurance cutoffs. Review the official VA TDIU eligibility page.

Private Coverage Options May Vary

When a fully underwritten policy is unavailable or too expensive, other products may be worth comparing. Eligibility, application requirements, coverage amounts, premiums, exclusions, and graded-benefit periods vary by insurer, state, and product. Do not assume approval unless the contract specifically states that acceptance is available for eligible applicants.

Simplified-issue coverage may omit a traditional medical examination, but the application may include health questions and permitted data checks. Coverage limits and pricing vary, and the absence of an exam does not guarantee approval.

Guaranteed-issue coverage generally does not require health questions or medical underwriting for applicants who meet the product's eligibility rules. Age ranges, benefit amounts, premiums, exclusions, and graded-benefit periods vary. Read the policy and state-specific materials before applying.

VA Life Insurance Options After Separation

VA-administered programs can be important options, particularly when private coverage is unavailable or does not fit the veteran's needs. The programs are separate from private insurance and have their own eligibility, application, premium, and benefit rules.

Key transition dates include: 120 days of free SGLI coverage after separation; a 120-day period to convert SGLI to an eligible permanent individual policy without proof of good health; a 240-day VGLI application window without proof of good health; and a final VGLI application deadline of 1 year and 120 days after separation. Eligibility details and exceptions are controlled by the current VA rules.

Veterans' Group Life Insurance (VGLI)

VGLI is renewable group term life insurance that allows eligible former service members to continue coverage after SGLI. You must apply within 1 year and 120 days after leaving the military. If you apply within the first 240 days, VA does not require proof that you are in good health. After 240 days, evidence of good health is required. Premiums depend on age and coverage amount. Confirm current eligibility, deadlines, and rates on the official VGLI page.

Veterans Affairs Life Insurance (VALife)

VALife is permanent whole-life coverage for eligible veterans with service-connected disabilities. Veterans age 80 or younger with a VA service-connected disability rating, including 0%, are generally eligible without proof of good health. VA also provides a limited eligibility path for certain veterans age 81 or older.

Coverage is available in $10,000 increments up to $40,000. Premiums are based on age at application and the selected coverage amount, and the premium rate does not increase while the policy remains in force. The full face amount takes effect after a two-year waiting period. If the insured dies during that period, VA states that the beneficiary receives premiums paid plus interest. Cash value begins after the policy has been in force for two years, and VALife does not offer policy loans. Review the VALife eligibility page and VALife FAQs.

How to Compare Your Options

Start with the current VA deadlines and benefits for which you may be eligible. Then identify the amount and duration of coverage needed and compare written private offers with VGLI and VALife where applicable.

Answer every application question accurately. Provide medical or VA records only when requested through an authorized, secure process. Compare premiums, benefit periods, exclusions, riders, conversion rights, waiting periods, and the financial strength of the issuing insurer. An independent broker can help compare available products and explain the process, but the insurer controls the underwriting decision and final offer.

Frequently Asked Questions

Can I have both private life insurance and VA-sponsored coverage?

Generally, yes. A veteran may hold private coverage while also holding eligible VGLI or VALife coverage. Each policy and VA program still has its own eligibility rules, premiums, limits, and effective dates.

Does a 100% P&T rating automatically cause a private-insurance denial?

No. A VA percentage or P&T status does not automatically determine a private underwriting result. The insurer evaluates the information required for the specific application and product under its current guidelines.

What if I miss VGLI's first 240-day window?

You may still apply until 1 year and 120 days after separation. After the first 240 days, VA requires evidence that you are in good health.

Does a VA disability rating determine my private life-insurance premium?

No. The percentage is not a universal private-insurance rate class. Pricing and eligibility depend on the insurer, product, coverage amount, and the medical and other permitted risk information used in underwriting.

Practical Next Steps

1. Check the date your SGLI coverage ends and any VGLI or conversion deadlines.

2. Review the current VA program pages and request written private proposals before replacing or declining existing coverage.

3. Keep existing coverage in force until replacement coverage is approved, accepted, and effective.

4. Compare the policy contract and official benefit terms, not only a quote or summary.

This article is educational and is not legal, tax, medical, or individualized insurance advice. VA program rules and insurer underwriting guidelines can change. Confirm current VA eligibility directly with VA and review the policy and insurer materials that apply to your situation.