- The VA’s first-ever Veterans’ Group Life Insurance (VGLI) premium holiday runs from November 1, 2026, through January 31, 2027, waiving three months of premium payments.
- More than 457,000 veterans are enrolled in VGLI and are set to save a collective nearly $150 million in premium payments.
- The average policyholder pays about $110 a month and will save an average of $330 over the three-month period.
- You’re eligible only if your VGLI policy is active and has not lapsed or been canceled for non-payment as of November 1, 2026 — no application is required.
- The holiday applies only to VGLI, not to SGLI, FSGLI, TSGLI, VALife, or S-DVI.
- If you’ve already paid premiums for the covered months, the VA will issue a credit toward future bills or a refund upon request.
- What Is the VGLI Premium Holiday?
- Who Is Eligible
- How Much Will You Save
- What You Need to Do
- What If You’ve Already Paid in Advance
- Why Is This Happening Now
- What This Doesn’t Cover
- Frequently Asked Questions
Starting in November 2026, the Department of Veterans Affairs will stop billing more than 457,000 Veterans’ Group Life Insurance policyholders for three straight months. It’s the first time in the program’s history that VA has suspended premiums, and the agency says the break will put nearly $150 million back into veterans’ pockets nationwide.
If you carry a VGLI policy, you don’t need to do anything to get this. But the eligibility rules have real edges — a lapsed payment at the wrong time can knock you out of the savings entirely. Here’s exactly who qualifies, how much you stand to save, and what the fine print says about prepayments, automatic deductions, and new applicants.
What Is the VGLI Premium Holiday?
VGLI is VA’s term life insurance program that lets veterans pay a monthly premium to maintain life insurance coverage after they leave the military. Launched in 1974, the program has more than 457,000 participants and offers term life coverage from $10,000 to $500,000, with coverage levels tied to age and to the amount of Servicemembers’ Group Life Insurance a veteran had when leaving uniform.
The Department of Veterans Affairs will save veterans nearly $150 million in insurance premium payments starting in November, when it implements the first-ever premium holiday for VGLI, meaning enrollees will not have to pay insurance premiums for three months, starting in November 2026 and ending in January 2027. Coverage will continue normally during the three-month period — your beneficiaries remain fully protected even though no payment is collected.
Who Is Eligible
You are eligible for the premium holiday if your VGLI coverage is active on November 1, 2026, and no action is required — the holiday will be applied automatically. The flip side is just as firm: you are not eligible if you cancel your coverage on or before October 31, 2026, or if your coverage lapses on or before October 31, 2026.
That cutoff matters more than it might seem. A VGLI policyholder whose coverage lapsed or was cancelled for non-payment before the holiday period began does not qualify, and reinstating a lapsed policy afterward does not retroactively create eligibility for the paused months. That distinction matters because VGLI, unlike some VA benefits, is not deducted automatically from a disability compensation or pension check; policyholders pay it directly, so a missed payment can end coverage on its own. If you’re behind on payments, catching up before the end of October is the only way to protect your eligibility.
If You Recently Enrolled or Reinstated Coverage
Your eligibility depends on when your VGLI coverage becomes effective — your first premium payment is always required to activate your coverage and pay for your initial month, and that payment is not included in the premium holiday. Someone whose coverage starts in December will receive the January break, but coverage beginning on or after January 1, 2027, would not qualify.
If you separated from service and haven’t applied for VGLI yet, the clock on eligibility for the program itself is separate from the holiday. Those eligible should receive an application within 45 to 60 days after leaving the service, and then have one year and 120 days from their date of separation to apply; those who apply within 240 days of leaving the service can submit their application with the first month’s premium and do not need to provide evidence of good health, while those who apply later must provide proof of good health, and after one year and 120 days, veterans who have not applied are no longer eligible for VGLI.
How Much Will You Save
Monthly premiums vary depending on a veteran’s age and the amount of insurance coverage they choose, but on average, veterans pay about $110 per month for VGLI coverage and will save an average of $330 during the premium holiday. That average masks a wide range, since VGLI premiums climb sharply with both age and coverage amount.
On the lower end, a veteran aged 70 to 74 with $100,000 of coverage pays $215 per month, making the three-month benefit worth $645. On the higher end, someone aged 75 to 79 with $500,000 in coverage pays $1,925 a month and could save $5,775 during the holiday. Multiply figures like these across the full enrollment base and you get the program’s headline number: nationwide, the initiative is expected to save veterans nearly $150 million in insurance payments.
What You Need to Do
For most policyholders, the answer is nothing. Eligible VGLI policyholders will automatically be exempted from three months of premium payments, and veterans will be notified in the coming weeks by letter or email if they are eligible, with no action required by any VGLI participant.
If your premium comes out of a retirement or disability check, or through VA’s own AutoPay system, you’re covered without lifting a finger: VGLI deductions from military retirement and VA disability payments will be paused during the three-month window, as will collections via AutoPay. There’s one notable exception. Those who use a bill-payment service through their financial institution must discontinue it as of Nov. 1 and restart it as of Feb. 1 to avoid the payments being processed. Those who do not discontinue payments during the holiday will have those payments applied to future bills — so an accidental payment isn’t lost, but it also won’t come back as cash right away unless you request a refund.
What If You’ve Already Paid in Advance
If you pay ahead on your policy and already covered the November-through-January window before the holiday was announced, you can either receive a credit on your policy for three months or can ask for a refund. Policyholders who have already paid premiums covering the holiday period will have the applicable amount credited to their next billing statement, according to VA guidance, unless they specifically request a refund instead.
One thing the holiday does not do: erase money you already owe. Anyone with overdue premiums should pay the outstanding balance to prevent their policy from lapsing, since the holiday itself does not wipe out any money owed prior to November.
Why Is This Happening Now
VA attributes the holiday to the program’s finances rather than to any new appropriation. The self-funded program’s financial performance has been incredibly strong, making the holiday possible, according to the VA’s official announcement, which credits that performance to the current administration. The agency’s statement on the move came directly from its top official: “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,” said VA Secretary Doug Collins.
This isn’t the only recent change to VGLI pricing. VA implemented premium discounts in 2025 to lower premium rates for all servicemembers, their spouses, and veterans in the SGLI, FSGLI, and VGLI programs, and the VGLI premium holiday is intended to provide additional financial relief to VGLI insureds, who must budget for premium rates that increase every five years based on age, which could create financial challenges for older veterans in particular.
What This Doesn’t Cover
If you carry other VA-administered life insurance, don’t expect the same break. The premium holiday applies only to VGLI and does not extend to other federal life insurance programs, including Servicemembers’ Group Life Insurance, Family Servicemembers’ Group Life Insurance or Veterans Affairs Life Insurance. VA has no plans to enact a premium holiday for any other insurance programs at this time.
It’s also worth remembering that this is a pause, not a permanent rate cut. The three months of free coverage end on January 31, 2027, after which normal billing resumes at your existing premium rate. For full eligibility definitions, including how VA defines a lapsed policy for this purpose, the VGLI Premium Holiday FAQ published by VA’s Insurance Service is the authoritative source, as is the main VA Life Insurance page.
Frequently Asked Questions
No. If your Veterans’ Group Life Insurance policy is active and in good standing on November 1, 2026, the exemption is applied automatically. You don’t need to call, fill out a form, or request anything. The VA says it will notify eligible policyholders by letter or email in the weeks leading up to the holiday, but that notice is just a confirmation, not something you need to act on.
Unfortunately, no. You’re only eligible if your coverage has not lapsed or been canceled for non-payment as of October 31, 2026. Reinstating a lapsed policy after that date does not retroactively qualify you for the paused premiums you missed — it only restarts your coverage going forward under normal billing. If you’re behind on payments right now, paying the outstanding balance before the end of October is the only way to protect your eligibility.
It depends on when your coverage becomes effective. Your very first premium payment is always required to activate a new VGLI policy, and that initial payment is not waived. But if your coverage starts before January 1, 2027, you may receive the holiday for whichever remaining months of November, December, or January fall after your effective date. For example, coverage effective in December would likely still get the January exemption.
No, you have two options. The VA will either apply a credit to your policy worth the premium you paid for the covered months, or you can contact the Office of Servicemembers’ Group Life Insurance (OSGLI) directly and request a refund. Either way, you won’t lose the money — it’s just a matter of whether it comes back as a credit toward future bills or a direct refund.
No action is needed on your end. VGLI deductions taken from military retirement pay or VA disability compensation, along with AutoPay withdrawals, will be paused automatically during the three-month window. The one exception is if you pay through your own bank’s bill-pay service rather than VA’s systems — in that case, you’ll need to manually cancel that scheduled payment before November 1 and restart it by February 1, or the payment may still go through.
No. This premium holiday is limited specifically to Veterans’ Group Life Insurance (VGLI). It does not extend to Servicemembers’ Group Life Insurance (SGLI), Family Servicemembers’ Group Life Insurance (FSGLI), Traumatic Servicemembers’ Group Life Insurance (TSGLI), VALife, or Service-Disabled Veterans Insurance (S-DVI). The VA has said it has no current plans to extend a similar holiday to those other programs.
It depends on your age bracket and coverage amount, since VGLI premiums scale with both. The VA’s average figure of $330 in savings is based on an average monthly premium of about $110, but older veterans carrying higher coverage amounts save considerably more. For example, a veteran aged 75 to 79 with $500,000 in coverage pays around $1,925 a month and could save roughly $5,775 across the three-month holiday.
VeteranNews.com is an independent educational resource not affiliated with the Department of Defense, VA, or any government agency. For official benefit information, visit VA.gov.
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