Denial of S-DVI Insurance

[Rattler]

I applied S-DVI Insurance on 11-27-21 due to my new PTSD ratting on 11-18-21. As I didn't hear anything from them at the end of March I called there 800 number.  (not 800 Betty) They said that it was denied but could not tell me the date it was or why. So the person said they would have someone call. So around the 4-7-22 I get the attached letter of denial with no date. What it appears to me is they are denning id due to " requires that you meet good health requirements except for
conditions that are rated by VA as service connected." Has anyone heard of this? 

Rdacted of Denial of S-DVI Insurance Ltr 3-4-22.pdf

[deedub75]

It's part of the eligibility requirements.  It asks about lung conditions, mental or nervous disorders, blood disorder, heart condition, cancer or tumor, and diabetes specifically on the application. Are you not service connected for diabetes mellitus, melanoma or the cevical spine condition since they denied you for these conditions?

It is life insurance. I sold life insurance years ago and I had clients be denied due to some health issues. S-DVI looks like service connected disabilities are covered but some non-service connected disabilities may not be. 

You can appeal this though. 

Eligibility
S-DVI provides up to $10,000 of life insurance for eligible veterans. To be eligible for S-DVI, you must meet all three of the following requirements:

1. You were released from active service in the Armed Forces on or after April 25, 1951, under other than dishonorable conditions.

2. You apply by December 31, 2022, or within 2 years of receiving your disability rating (whichever comes first). Please Note: The disability you are rated for must be a new disability, not an increase in a disability you already have. An increase to 100% or being granted individual unemployability does not automatically entitle you to a new eligibility period.

3. You are in good health except for your service-connected disability. We will evaluate all health conditions that are not service-connected. Information about any health conditions should be included on your application.

[deedub75]

The S-DVI program is going away on December 31, 2022 and being replaced with Veterans Affairs Life insurance (VALI). The premium waiver is going away as well so everyone needs to get those S-DVI applications in by December 31, 2022!

[Vync]

@Rattler767 The VA's life insurance department doesn't do things like the rest of the VA and there's no way to track routine requests on va.gov like we can for everything else.

I submitted a CUE due to an improper denial years ago and they had no idea what I was talking about. I ended up escalating up to a department chief who ended up getting me in touch with a VA lawyer who also didn't know what CUE was. Go figure...

 

@deedub75 I appreciate the update about it changing. I will have to look into the replacement program.

[GBArmy]

I just applied and received approval for it, but I haven't received the policy It sounds like everyone who has S-DVI will be notified of the opportunity to join the new program called VALI.  sometime this fall.  Details are not available yet but I must admit the rate I got was about half the cost of a commercial contract. And that would be IF I were able to get a policy from them. Here's their site https://www.benefits.va.gov/insurance/vali_rates.asp

what I see is that if you are not 100% rated, you still can buy a policy for $40K, which you can't do with S-DVI.

[broncovet]

Take note:  This is one more reduction to our benefits.  SDVI has waiver of premiums (that is, no cost to the Veteran) on 10,000.  

That, apparently is "going away", so there wont be any more 10,000 free life insurance  for Disabled Vets.  Instead, VALI means you have to pay for it.  

Its "guaranteed" issue, which means "no death benefit for the first 2 policy years"..but only a return of premiums.  

Many companies offer "guaranteed issue", with this limitation.  

YOur denial is hogwash, just plain hogwash.  EVERY 100 percent Vet "also" has somethings wrong with him that is NOT SC.  Appeal it.  

It used to be VA life insurance was great.  It just got worse..much worse.  

[deedub75]

I'd like to see if anyone has successfully appealed this type of denial. I had other disabilities that weren't service connected but I didn't have a lung condition, mental or nervous disorders, blood disorder, heart condition, cancer or tumor, diabetes. These are listed on the application as possibly disqualifying if they aren't service connected. 

[Rattler]

It is my understanding that the reason for this insurance is because disabled Vets have problems other than the service connect ones. I saw no where in the application that said that.  the only back problems I had was neck surgery in 2005. The Cancer was skin in 2021 and it was level 1 on eastly removed the Knee issues I just received a total replacement on March 14th through Community Care. All the info they used to deny dated back to 2005 through 2008 that would be beyond the 2 year limit.

Edited April 15, 2022 by Rattler767 (see edit history)

[broncovet]

Its my opinion, this is a bogus denial.  While VA uses bogus denials all the time, VA LIFE insurance rarely did so in the past.  That has apparently changed.  

However, "if" you already have the first 10,000 in SVDI you may need to qualify on additional life insurance.  

    The "whole idea" behind VA life insurance is to provide disabled Vets insurance who may not be able to get it otherwise.  

   Frankly, it "stinks to high heaven", that you were denied because you had things wrong with you which are not SC.  

[deedub75]

1 hour ago, Rattler767 said:

It is my understanding that the reason for this insurance is because disabled Vets have problems other than the service connect ones. I saw no where in the application that said that.  the only back problems I had was neck surgery in 200. The Cancer was skin in 2021 and it was level 1 on eastly removed the Knee issues I just received a total replacement on March 14th through Community Care. All the info they used to deny dated back to 2005 through 2008 that would be beyond the 2 year limit.

S-DVI is to help veterans who have been rejected for insurance by a commercial company or were offered a policy at high premiums because of service connected disability(its).  This is straight out of VA Pamphlet 29-9.  

 

[Richard1954]

Unfortunately the denial is valid. I have seen this before.  If there is evidence of any serious medical condition not rated by the VA they will deny the insurance every time. They do not even consider if you have a claim in the system for something that is not yet service connected. Now if you had a claim in the system and later the award is granted, they will issue the insurance based on the new date that you applied. 

 

I was not aware they were doing away with S-DVi and creating a new insurance system,, I will look into this. Every time I get a new disability award, they include paperwork telling me I am eligable to apply for insurance,  But when I have applied I am denied because they will not allow you to have more than $30k insurance policies, the Free $10K and then a separate $20K.  I never understood why they only allow a total of $30K. I have purchased some private insurance that I can not be refused, but its expensive and I had a two year period that it would not have paid if I died. I purchased it to pay for my funeral, ( anything over the cost of a militay/VA funerial). I alo have Veterans mortage life insurance, that will pay off my house ( up to %200K) if I die before it is paid off. This insurance is only for veteans who have been awarded adaptive housing, and its only good up to $200K. anything over that they will not pay.  I purchased this for peace of mind for my wife. Its cost are based on the veterans age and the unpaid balance of the mortage at the time you apply. After your reach 70 they will not sell you this insurance regardless that you have adaptive housing.

Edited May 22, 2022 by Richard1954
spelling (see edit history)