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You may not know this about VA life insurance: ITS Worth MONEY!

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Posted (edited)

Depending upon when you got the VA life insurance (SDVI, but other life insurance may also apply) you may be able to get money.  

Allow me to explain.   The 10,000 waiver of premium (aka free life insurance) SDVI is WHOLE Life, and it has cash value.  

This means you may cash in the policy..which means you get cash now, and the policy is no longer in effect.  

UNLESS there is a compelling reson, DONT CASH IT IN.  As I wwill explain, below.  Instead, you can borrow almost as much and keep the policy.  The VA will continue to pay the premiums and your heirs will get the 10,000 MINUS any loans in the event of your death.  By borrownig against your life insurance instead of cashing it out, you keep at least a portion of the death benefit.  Why throw away that death benefit, when you can get almost as much cash by borrowing against the policy as you would cashing it in?  

How much cash will you get?  

     This is determined by how long you have had the policy.  It starts out in the first 4 or 5 years as a small amount, and grows each year.  You may get statments each year but not everyone reads them.  You can call vA life insurance and ask about the cash value or loan value, and they will tell you how to get the money if you ask.  

    My policy was done in 2007 and my insurance is worth about $6000 if I were to cash it in.  


If you borrow against your policy generally you are NOT reequired to repay the loan.  (But it will be deducted from the proceeds in the event of your death).  

As always, talk to VA life insrance agent, who can explain in more details.  

Whole Life ...has cash value.  The SDVI is whole life and has cash value.  

TERM life. generally has no cash value.  

There are exceptions, so talk to the VA about your life insurance policy if you need money.  


You can call the VA Life Insurance Center at 800-669-8477 (TTY: 711).May 13, 2024

Edited by broncovet
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