How Veterans Can Make the Most of the VGLI “Premium Holiday”

The holiday season is just over the horizon, and as it nears, hundreds of thousands of United States veterans will receive some welcome financial relief.

Starting on November 1, 2026, the Department of Veterans Affairs (VA) is enacting a three-month “premium holiday” for Veterans’ Group Life Insurance (VGLI) policyholders. Eligible veterans will maintain their VGLI insurance without making premium payments during November, December and January.

This frees up some money for veterans and their families during one of the most expensive times of the year, but it’s essential to know how this premium holiday works, whether you qualify, and why this is a good chance to look at your insurance needs.

Why the VGLI Premium Holiday Is Happening

VGLI is a life insurance program for military veterans with premiums that increase every five years as policyholders age. These ever-rising costs can strain budgets for older veterans on fixed incomes.

Thankfully, the VGLI program has recently seen exceptionally strong financial performance, which created this opportunity for the VA to grant policyholders some temporary relief. About 457,000 veterans get their life insurance through VGLI, with average premiums of $110 per month, meaning the average policyholder will save $330 when payments are suspended.

The relief comes at a crucial time, as many aging veterans are on strict budgets, so extra funds during the holiday season can create many new opportunities for them. Whether it’s for shopping, traveling, helping with family gatherings or just easing the cost of everyday life, a few hundred extra dollars at this time of year can make a major difference.

Determining if You Qualify

Here’s the good news: almost all current VGLI policyholders will receive the premium holiday benefits without having to do a single thing. If your coverage is active on November 1, you’ll automatically qualify for all three months of the premium holiday; there’s no application to fill out, or special request to be approved.

There are, however, some important considerations to keep in mind. If your policy is canceled or lapses by October 31, you won’t qualify. Also, anyone with outstanding premium balances should still plan to pay whatever amount they owe, since this payment stoppage period does not forgive previously unpaid premiums.

If you are new to VGLI, you might qualify for a portion of the premium holiday; it depends on when your coverage becomes effective. If your coverage starts in November, you may be able to still receive relief in December and January, but the initial premium payment that’s required to activate your policy still has to be made.

Veterans who paid their premiums in advance won’t lose out on the benefits of this period, as any payments for these months can instead be credited toward future premiums. Refunds are also available upon request.

If any of these situations apply to you, review your policy status and payment arrangements through your VGLI account or contact the Office of Servicemembers’ Group Life Insurance to clarify your eligibility.

Relooking VGLI for Your Family’s Protection

 

The premium holiday is also a good time to revisit your overall insurance needs and weigh the advantages and disadvantages of VGLI. The main advantage of VGLI is that you can get up to $500,000 of coverage with no medical exam, as long as you apply within 240 days leaving military service.

The ability to get insurance that you can continue for the rest of your life, regardless of your health, is valuable. But as you age, it can become extremely costly. While the monthly premium for $500,000 of VGLI life insurance protection is only $95 at age 45, it becomes $145 at 50, $250 at 55, $425 at 60, $690 at 65, $1,075 at 70, and $1,925 at 75. For veterans with serious medical conditions, those rates may be worth paying. For many others, premiums eventually become so expensive that they cancel their policies, leaving their families without life insurance protection.

If you are in fair or better health, it is often worth exploring other life insurance providers. Take the opportunity to take a hard look at your needs and expenses to see if there’s a better fit available for you, especially as VGLI premiums increase as you age. This is especially true for female veterans, since VGLI premiums are the same for men and women, even though women generally have lower mortality rates and can get less expensive insurance.

Every dollar saved can help: sometimes in the near-term and sometimes further down the road. Take advantage of this rare opportunity, which can provide savings now and potentially for years to come.

Visit Armed Forces Mutual to learn more.