How Veterans’ Mortgage Life Insurance Can Help You

Families of severely disabled veterans have options for paying off a home mortgage in the event of the veteran’s death. One such option is Veterans’ Mortgage Life Insurance (VMLI), available through Veterans Affairs. A Mobile, AL veterans disability benefits attorney can help you apply for this mortgage protection insurance.

To be eligible for VMLI, a veteran or service member must have severe service-connected disabilities. In addition, the applicant must have:

  • Received a Specially Adapted Housing grant (which helps remodel, build, or purchase a home); and
  • The title to the home; and
  • A mortgage on the home

Also, the veteran must apply for VMLI prior to his or her 70th birthday. Your Mobile, AL veterans disability benefits attorney can explain more about how to qualify for the program.

VMLI is intended to pay up to $200,000 on the home mortgages of eligible veterans and service members upon death. This life insurance is payable only to the mortgage holder, such as the bank or lender. Unlike other forms of life insurance, it is not paid to beneficiaries of the deceased. The actual payout amount equals the balance still owed on the mortgage, but cannot exceed $200,000. Coverage therefore decreases with the amount remaining on the mortgage.

The actual VMLI premium varies. The Veterans Affairs website maintains a calculator that you can access to obtain a quote. Premiums take into account your age, your current mortgage balance, and how much time is left to pay on it. But applicants should be aware that the calculator can only give an estimate of your premium. There are also important details concerning each element used to determine your rate. Talk to a Mobile, AL veterans benefits attorney to learn more about how premiums are calculated.

Veterans who receive Specially Adapted Housing grants will be advised by loan guaranty personnel as to their eligibility for VMLI. The agent you work with can help you complete VA Form 29-8636, the Application for Veterans’ Mortgage Life Insurance. The applicant must also provide information about their current mortgage. A veterans disability benefits lawyer can assist you with the application process. You can also consult the Veterans Affairs website to learn more.

Upon the death of the veteran, the surviving family members will file an insurance claim as follows. First, they will contact the VA Insurance Center (VAIC) to report the veteran’s passing. The person calling should have the veteran’s claim number ready. Next, certain documents must be gathered and sent to the VAIC. These include the death certificate and the payoff amount or account statement for the mortgage. The mortgage statement should include:

  • Balance of the mortgage after the final payment made by the veteran prior to his or her death
  • The address of the mortgage company where payment should be sent
  • The per diem rate: that is, the prorated amount of interest due for the remainder of the month after death

All of this documentation can be mailed or faxed to the VA. Consult a Mobile, AL veterans disability lawyer for help gathering the above information.


Mortgage life insurance is a great program available to qualifying veterans. But in addition to questions about the application process, you may have concerns as to whether you are even eligible. Perhaps you have not been determined to have severe service-connected disabilities. This would disqualify you from this program. Contact the team at Ascend Disability Lawyers, LLC today. We can answer all of your questions, help determine eligibility, and start you on the path to receiving this benefit. We look forward to hearing from you.

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