Veterans’ Life Insurance Expansion and Integrity Act of 2025
The Veterans’ Life Insurance Expansion and Integrity Act of 2025 would broaden and reform the Department of Veterans Affairs’ life insurance programs. The core change is to expand eligibility for veterans to obtain VA life insurance by removing the requirement that applicants have a service-connected disability and by allowing applications up to age 80 (the bill sets a cutoff for applying before the veteran attains 81). The bill also introduces new reporting requirements to assess the program’s solvency, premiums, and any insurance cancellations due to administrative errors, and creates stronger protections for policyholders when the VA cancels or voids policies because of administrative errors. These protections include prior notice, a right to present evidence, a defined review period, and a one-year limit on cancellations related to such errors. The amendments would take effect one year after enactment.
Key Points
- 1Expands eligibility for VA life insurance under 38 U.S.C. 1922B by removing the service-connected disability requirement and allowing applications before the veteran turns 81.
- 2Codifies and reforms the life insurance structure under 1922B, including changes to section numbering and headings for clarity.
- 3Requires the VA to conduct a comprehensive study and report within two years on program enrollment, claims, payments, cancellations due to administrative error, program solvency, premiums, and potential cost savings from such cancellations.
- 4Establishes new due-process protections for policies canceled or voided due to administrative error, including initial notice with the error explanation, a 90-day window to present evidence, an up to 180-day evidentiary review, and a prohibition on cancellations after one year from issuance/reinstatement/conversion.
- 5Defines administrative error as a clerical, technical, or processing mistake by the VA that causes an issuance, reinstatement, or conversion to an individual who is ineligible.