What is Veterans’ Mortgage Life Insurance (VMLI)?

Veterans’ Mortgage Life Insurance (VMLI) is an insurance program that has been designed to provide mortgage life insurance to disabled veterans and service members who are severely disabled. VMLI is designed to assist the families of disabled veterans and service members in paying off a mortgage in the untimely event of their death. Unlike Veterans’ Group Life Insurance, it is not available to all military veterans.

Who is eligible for Veterans’ Mortgage Life Insurance?

Before applying for VMLI, you should be aware that only severely disabled veterans and service members receiving a Specially Adapted Housing Grant from the Veterans Administration will be eligible for the Veterans’ Mortgage Life Insurance program. The Specially Adapted Housing Grant is used to assist the severely disabled veteran or service member in building or modifying their home in order to accommodate his or her disabilities.

PL 110-289 Extends VMLI Coverage: Effective July 30, 2008, PL 110-289 extended VMLI to disabled active duty service members as well as service members and veterans who suffer from a severe burn injury.

Applying for VMLI

Veterans and service members receiving a grant through Specially Adapted Housing are notified by Loan Guaranty personnel during their interview if they’re eligible for the Veterans’ Mortgage Life Insurance for the purpose of covering the unpaid portion of the mortgage on their home. The Specially Adapted Housing Agent will assist the veteran or service member in completing the required forms for the Veterans’ Mortgage Life Insurance at that time.

If the severely disabled veteran or service member chooses not to apply for the coverage at the time of the loan origination, the Veterans Administration will send a letter to them informing them of their eligibility for the insurance coverage. Information on their current mortgage will also be required for documentation.





How much does VMLI Cost and what coverage can you get?

The Veterans’ Mortgage Life Insurance program will provide the severely disabled veteran or service member with up to $90,000 in mortgage life insurance which is payable to the mortgage holder (such as the lender or the bank) in the untimely event of the severely disabled veterans or service members death. The coverage amount will be equal to the amount of money still owed on the mortgage and the maximum will never exceed $90,000. Veterans’ Mortgage Life Insurance is a term life insurance which decreases in value as the amount of the loan is reduced.

Premium calculators are available to assist you in determining your insurance rates. You can use the VMLI Premium Calculator for more detailed information on calculating your premium amount.

Additional information about the Veterans’ Mortgage Life Insurance

For more information on the Veterans’ Mortgage Life Insurance you can go to their site where you can and download a free VMLI brochure or read more detailed information on the mortgage protection insurance and what it offers.




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Date published: March 30, 2010. Last updated: August 19, 2010.

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Ryan Guina is the founder and editor of this site. He is a writer, small business owner, and entrepreneur. He served over 6 years in the USAF and also writes about money management, small business, and career topics at Cash Money Life. You can also see his profile on Google

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