The premium holiday will run through January 31, 2027, and applies automatically to veterans whose VGLI policies are active on November 1. According to Newsweek, policyholders currently pay about $110 per month on average, putting the typical three-month saving at roughly $330, although the amount varies substantially by age and coverage level.
VGLI is a VA-backed term life insurance program that allows eligible former service members to maintain life insurance after leaving military service. Coverage ranges from $10,000 to $500,000, while premiums are determined by both the policyholder’s age and the amount of insurance selected.
The initiative is limited specifically to VGLI. Other VA-related insurance programs, including Servicemembers’ Group Life Insurance, Family SGLI, VALife and Service-Disabled Veterans Insurance, are not covered by the premium holiday.
Who Qualifies for the Three-Month Premium Holiday
Eligibility centers on whether a veteran’s VGLI policy remains active on November 1. Veterans who meet that requirement do not need to submit an application or complete another step because the premium suspension will be applied automatically.
Policies canceled or allowed to lapse by October 31 will not qualify. Veterans with overdue premiums must therefore clear the outstanding amount if necessary to keep their coverage active. The three-month holiday does not erase premiums owed before November.
Veterans who enroll during the holiday can receive a partial benefit. According to Newsweek, someone whose VGLI coverage begins in November must make the initial payment required to activate the policy, but premiums for December and January will then be waived. Coverage beginning in December receives the January waiver, while policies beginning on or after January 1, 2027, do not qualify.
The arrangement also covers veterans who have already paid premiums in advance. Payments previously made for November through January will instead be credited toward future bills. Policyholders who mistakenly submit a payment during the premium-free period can request a refund.
“VA is all about making life better and more affordable for Veterans, and this premium holiday will help the men and women who served this nation keep more of their hard-earned money,” VA Secretary Doug Collins said in the department’s announcement.
Savings Vary Sharply by Age and Coverage Level
The financial benefit differs among policyholders because VGLI premiums increase according to age and the amount of coverage. Policies are available in $10,000 increments, up to a maximum of $500,000.
Under current VA rates cited by Newsweek, a veteran aged 29 or younger carrying $500,000 in coverage normally pays $30 per month and would save $90 over the three-month period. A policyholder aged 40 to 44 with $250,000 of coverage pays $35 monthly, producing a $105 saving.
For veterans aged 50 to 54, $250,000 of coverage costs $72.50 per month, resulting in $217.50 in waived premiums. A veteran aged 60 to 64 with $500,000 of coverage pays $425 monthly and would save $1,275.
The figures become larger for some older policyholders. A veteran aged 70 to 74 with $100,000 of coverage pays $215 each month, making the three-month waiver worth $645. Someone aged 75 to 79 carrying the maximum $500,000 policy normally pays $1,925 monthly and could avoid $5,775 in premiums during the holiday.
VGLI enrollment has also risen in recent years. VA figures reported by Newsweek show about 437,500 policyholders in fiscal 2020 and more than 453,700 in fiscal 2024. The department now puts enrollment above 457,000.
