Mortgage protection with a VA loan
Check the VA's own programmes first. One of them is literally mortgage life insurance.
VA loans work differently from FHA and conventional lending, and veterans have access to insurance programmes most people never hear about.
Two of them are worth checking before buying anything commercially.
VMLI: mortgage life insurance from the VA
Veterans' Mortgage Life Insurance is exactly what its name says — mortgage life insurance, run by the VA, that pays the mortgage balance on the insured veteran's death.
It's available to severely disabled veterans who received a Specially Adapted Housing grant, and eligibility rules are specific. If you received an SAH grant, check this before anything else, because commercial coverage is unlikely to beat it.
Amounts, premiums and deadlines are on va.gov and change — get the current position from them directly.
VGLI after separation
Servicemembers' Group Life Insurance ends after separation, and Veterans' Group Life Insurance is the route to continue coverage. There's a limited application window after separation during which you can convert without proving your health.
That health-question-free window is the valuable part, particularly for anyone with a service-connected condition. Miss it and you're back to ordinary underwriting.
What VA loans don't have
There's no monthly mortgage insurance on a VA loan, which is one of the programme's main advantages. There is generally a funding fee, with exemptions in defined circumstances including for some veterans receiving compensation for a service-connected disability.
Confirm your own position with the VA or your lender rather than assuming either way.
Assumability matters here too
VA loans are generally assumable subject to approval. A surviving spouse or heir with a low-rate loan may be far better off assuming it than clearing it.
That's another reason to hold insurance payable to your family rather than to the lender — they keep the choice.
Also worth checking
- Whether your surviving spouse would retain VA loan entitlement
- Dependency and Indemnity Compensation eligibility, which is separate from insurance
- Any SGLI Family Coverage on a spouse
- Employer or association coverage alongside the VA programmes
- Whether a commercial policy is still needed once the above are counted
Common questions
Yes — Veterans' Mortgage Life Insurance pays the mortgage balance on the insured veteran's death. It's available to severely disabled veterans who received a Specially Adapted Housing grant. Check va.gov for current eligibility and amounts.
It ends. Veterans' Group Life Insurance is the route to continue coverage, and there's a limited window after separation to convert without health questions — which matters most if you have a service-connected condition.
No monthly mortgage insurance. There's generally a funding fee, with exemptions in defined circumstances. Confirm your position with the VA or your lender.
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This page is general information, not advice about your specific circumstances. A licensed insurance professional can tell you what’s actually available to you.
General information only, not insurance advice. Coverage, availability, and terms vary by insurer and by state, and are subject to underwriting. Quote My Policy LLC is a licensed insurance producer. Nothing here binds coverage.