What Is Veterans Mortgage Life Insurance?
Veterans Mortgage Life Insurance (VMLI) is a life insurance program designed to pay off the home mortgages of eligible veterans in the event of their death. VMLI is decreasing term insurance which reduces as the mortgage balance is reduced by regular payments. Eligible veterans can apply for VMLI coverage on a new mortgage, an existing mortgage, a refinanced mortgage or a second mortgage.
Who Is Eligible for VMLI?
Veterans who have received a Specially-Adapted Housing (SAH) grant from VA are eligible to apply for VMLI.
How Much Coverage Does VMLI Provide?
The amount of coverage equals the amount of the outstanding mortgage balance still owed by the veteran or $90,000, whichever is the lesser amount.
How Much Does VMLI Cost?
Premiums are determined by the age of the veteran, the outstanding balance of the mortgage at the time of application, and the number of years remaining on the mortgage. Premiums are charged at standard rates. This means veterans are not charged higher premiums because of their disabilities.
How Long Can I Keep VMLI?
VMLI coverage ends when one of the following occurs:
- The mortgage is paid in full.
- The veteran no longer has title to the home.
- The veteran cancels the insurance.
Do I Name A Beneficiary?
No, VMLI is payable only to the mortgage lender, not to a beneficiary.
Is This A One-Time Benefit?
No, if the insured veteran sells the home covered under VMLI and later purchases another home, he or she is entitled to have the newly purchased home covered for the full amount of VMLI available.
How Do I Apply?
Your Specially-Adapted Housing Agent will provide you with a VMLI application or you can print a copy from VA’s Insurance website at www.insurance.va.gov.