WASHINGTON – RealEstateRama – This month, the Department of Veterans Affairs reduced premiums for most Veterans and Service members insured under the Veterans’ Mortgage Life Insurance program.
Through the VMLI program, eligible Veterans and Service members with severe disabilities can purchase up to $200,000 in mortgage life insurance. This coverage means that if a policyholder passes away, the amount of their coverage will be used to pay down their mortgage — helping to ensure that their loved ones won’t be responsible for that cost.
Starting Oct. 1, most VMLI policyholders saw a reduction between 6% and 36% of their premiums, depending on their age. VA is using an updated actuarial table and interest rates adopted by the insurance industry to decrease VMLI premium rates. Veterans will see the reduced rates on their next billing cycle, starting in November, as payment of each VMLI premium is for the prior month.
“This coverage will now be more affordable for many of our nation’s heroes, making it easier for them to protect their homes — and their loved ones — even if they pass away,” said VA Under Secretary for Benefits Joshua Jacobs. “This is a great step forward that will mean peace of mind for many of the Veterans we serve.”
While a small group of VMLI policyholders will not see a decrease in premiums under the new actuarial table, VA locked in their current premiums so they will not increase.
More than 2,200 Veterans and Service members are currently insured by VMLI. Veterans and Service members may be eligible for VMLI if they meet all these requirements: