Veterans Life Insurance Policy Loans and Cash Surrenders

Managing AgencyVeterans Benefits Administration (VBA) 
Program Description

Policyholders who have eligible permanent plans of insurance may borrow up to 94 percent of the cash value of the policy after it has been in force for one year or surrender the policy for its cash value. Loans are granted in any amount up to 94 percent of the policy's reserve value, minus any existing indebtedness against the policy, plus interest.

General Program Requirements

In order to qualify for a loan or cash surrender, you must also have a permanent plan issued under one of the following programs:

  • United States Government Life Insurance (USGLI) 
  • National Service Life Insurance (NSLI)
  • Veterans' Special Life Insurance (VSLI) 
  • Service Disabled Veterans Insurance (S-DVI) 
  • Veterans Reopened Insurance (VRI) 
Loan Terms

Variable Interest Rate between 5-12 percent with no Upfront Fees or Pre-payment penalties. Maximum Loan Length at maturity. Maximum Loan Amount 94 percent of the policy reserve value. Annual Payment Frequency.

A loan or cash surrender may be obtained in two ways:

  1. After a whole life or endowment plan has been in force for one year on a premium-paying basis or is paid-up.
  2. On paid-up additional insurance attached to either permanent plans or term plans.

For more information, see the "VA Life Insurance Programs for Veterans and Servicemembers Handbook," topics "Guaranteed Values" and "Policy Loans."

Your Next Steps
The following information will lead you to the next steps to apply for this benefit.
Application Process

To apply for a policy loan online please visit the VA Life Insurance homepage.

You can apply for the cash value by submitting:

You can apply for a loan by submitting:

Program Contact Information

If you have questions:

  • Visit the Inquiry Routing & Information System (IRIS) website to search Frequently Asked Questions or ask a question on-line
  • Call the VA Insurance Center at 1-800-669-8477
  • Call 1-800-829-4833, if you are hearing impaired

To apply for additional benefits and view your benefit status, open an eBenefits Premium account. eBenefits is a one-stop source for information on Department of Defense and Department of Veterans Affairs benefits and services. With a free Premium level eBenefits account, Veterans, Servicemembers and their family members can conduct self-service transactions such as checking compensation and pension claim status information, enrolling in GI Bill, and obtaining copies of civil service preference letters, military records (DD214), and other personal information. For further information and to register for a free Premium level account, visit the eBenefits website.