Is Term Life Insurance for 100% Disabled Veterans and CRSC Pay Possible?

Why are so many disabled Veterans missing out on better life insurance? Imagine paying too much for limited insurance or leaving your family underinsured—simply because you assumed your VA disability would disqualify you. Unfortunately, this is the reality for countless veterans who believe their 100% VA disability rating or combat-related injuries mean they have no choice but to stick with VA-provided options like VGLI or the Survivor Benefit Plan (SBP).

But what if I told you that, in many cases, this isn’t true? Private life insurance could offer disabled veterans more flexibility, better rates, and higher coverage limits—all tailored to your family’s specific financial goals. Whether you’re newly transitioning out of the military or reevaluating your long-term financial strategy, understanding your options is critical to protecting your loved ones and building lasting wealth.

Breaking the Myth – 100 % VA CRSC Can Qualify for Private Life Insurance

One of the biggest misconceptions among veterans with VA disability ratings or combat-related injuries is the belief that private life insurance is out of reach. This misunderstanding often stems from three common assumptions:

VA Disability Means Automatic Disqualification

Many veterans think their VA disability status is an immediate red flag for private insurers. But here’s the truth: VA disability ratings aren’t the same as medical underwriting. While the VA focuses on conditions connected to your military service, private insurers evaluate your overall health and the specific impact of those conditions on your life expectancy.

Premiums Will Be Too High to Afford

Veterans often believe that if they do qualify, premiums will be exorbitant. However, many insurers offer competitive rates, especially for those in relatively good health beyond their service-related conditions. For example, even veterans with conditions like PTSD or hearing loss may receive favorable rates if those conditions are well-managed.

Applying Isn’t Worth the Effort

Because VA insurance options like VGLI are automatically available, many veterans feel it’s easier to stick with what they know rather than explore private options. But this mindset can result in paying more for less coverage. Private life insurance often provides greater flexibility, higher coverage limits, and premiums that don’t increase with age.

The Reality: Applying for private life insurance is simple and free, and it may reveal options that save you money while protecting your family better. By challenging these myths, you could uncover coverage that aligns with your financial goals and lifestyle.

Why VA Insurance Isn’t Always Enough

VA-provided life insurance options, like VGLI (Veterans Group Life Insurance) and the Survivor Benefit Plan (SBP), are often the default choices for veterans transitioning out of the military. While these programs serve a purpose, they’re not always the best solution for long-term financial security.

Here’s why:

The Limitations of VGLI

• Rising Costs Over Time: VGLI premiums are age-based, which means they start low but increase sharply as you age. For many veterans, this becomes unsustainable in retirement when living on a fixed income.
• Capped Coverage: VGLI maxes out at $500,000—a significant amount but often insufficient for veterans with families, mortgages, or wealth-building goals.

The Gaps in SBP

• Limited Coverage: The SBP provides only 55% of your pension to your spouse after your passing, which might not be enough to maintain your family’s lifestyle.
• No Cash Value: SBP is strictly a benefit—you pay into it but gain no equity or cash value you can access during your lifetime. If your spouse passes away first, those contributions are essentially lost.
• Cost vs. Benefit: At 6.5% of your gross pension, SBP can represent a significant financial commitment with limited flexibility and no options to adjust coverage over time.

Why Private Insurance Fills the Gaps

Private life insurance provides a range of benefits that VA options can’t match:

• Fixed Premiums: Unlike VGLI, private insurance policies allow you to lock in stable premiums, protecting you from rising costs as you age.
• Customizable Coverage: You choose the death benefit amount that aligns with your family’s needs, whether $500,000, $1 million, or more.
• Additional Features: Many private policies, such as Indexed Universal Life (IUL) insurance, offer cash value accumulation that you can access tax-free during your lifetime, adding flexibility to your financial strategy.

VA insurance options aren’t inherently bad but are not one-size-fits-all solutions. For many veterans, relying solely on VGLI or SBP could leave significant gaps in coverage, jeopardizing their family’s financial security. Private insurance offers the flexibility and benefits needed to address those gaps—often at a better long-term cost-benefit ratio.

My Story – From Combat to Helping Veterans Secure Their Futures

I spent 20 years in the Navy as an Explosive Ordnance Disposal (EOD) technician, serving in high-stress combat environments alongside special forces in Iraq and Afghanistan. Like many veterans, my service left its mark—I earned a Purple Heart, and my medical records included common conditions like traumatic brain injury (TBI) and post-traumatic stress disorder (PTSD).

When I began planning for retirement, my life insurance options seemed limited to SBP or VGLI. But those programs’ rising costs and limited benefits didn’t sit right with me. I assumed private life insurance wasn’t possible because of my medical history, but I applied anyway.

To my surprise, I qualified—not just for coverage but for preferred rates.

That moment was eye-opening. It made me realize how many veterans miss out on better options because they assume private insurance isn’t possible.

Drawing from my experience, I now work to help veterans explore these options, navigate the process, and secure financial protection for their families. If you’ve ever been told your VA disability or combat history disqualifies you, let me assure you—it’s worth finding out. You might be surprised at what’s possible.

Annuities – Another Option for Veterans

Annuities are a powerful alternative for veterans who may not qualify for private life insurance or want additional financial security. They allow you to turn your retirement savings, like a TSP or 401(k), into guaranteed income for life or a fixed time—no health qualifications required.

Why Consider Annuities?

• No Medical Underwriting: Accessible to all veterans, regardless of health conditions.
• Guaranteed Lifetime Income: Provides predictable, steady payments to supplement your military pension.
• Protects Retirement Savings: Shields assets like your TSP or 401(k) from market volatility while allowing tax-deferred growth.

Annuities can offer the stability and security many veterans need, especially if private life insurance isn’t the right fit. They’re a flexible and dependable way to ensure your family’s financial future.

The Benefits of Private Life Insurance and US VetWealth’s Unique Approach

Private life insurance offers a range of benefits that go far beyond what VA-provided options like VGLI or SBP can provide. For veterans, it’s about more than just coverage—building flexibility and long-term financial security tailored to your family’s needs.

Why Private Life Insurance?

• Stable Premiums: Unlike VGLI, private policies allow you to lock in fixed premiums that won’t increase with age.
• Customizable Coverage: You can select coverage amounts that match your financial goals, whether $500,000, $1 million, or more.
• Cash Value Accumulation: With policies like Indexed Universal Life (IUL), you can build cash value over time, which is accessible for emergencies or wealth-building strategies.

What Makes US VetWealth Different?

• Access to 70+ Carriers: As an independent agency, we provide access to a wide range of life insurance providers competing for your business.
• Expertise in Translating Military Records: Our direct relationships with underwriters allow us to translate military medical conditions, like PTSD or TBI, into favorable ratings that many veterans wouldn’t expect.
• Tailored Solutions: We specialize in working with veterans and understand the unique challenges of transitioning from military to civilian financial planning.

With US VetWealth, you’re not just getting a life insurance policy—you’re gaining a partner who understands your journey and is committed to helping you protect your family and build lasting financial security.

How to Explore Your Options (Step-by-Step)

Getting started with private life insurance doesn’t have to be complicated. With the right guidance, you can find coverage that fits your family’s needs—often faster and more efficiently than expected. Here’s how to begin:

Step 1: Assess Your Needs

Determine how much coverage your family will need to replace your income, pay off debts, and maintain their lifestyle. Identify gaps beyond what VA options like VGLI or SBP can provide.

Step 2: Work with US VetWealth

As an independent agency, we access 70+ carriers to find the best fit for your unique situation. We specialize in translating military medical conditions into favorable ratings, ensuring you receive the best options.

Step 3: Get a Free Quote

It costs nothing to apply, and we’ll provide clear insights into your options. Whether you qualify for private life insurance or an alternative like annuities, we’ll guide you through every step.

These steps can set you on the path to financial security. Don’t let assumptions hold you back—explore what’s possible today.

FAQs – Private term life insurance for disabled veterans

Don’t Let Misconceptions Hold You Back

As a veteran, you’ve faced challenges head-on throughout your life, and securing your family’s financial future is no different. The belief that VA disability or combat-related injuries disqualify you from private life insurance is a myth—and one that could cost your family in the long run.

By exploring your SBP options, you’ll discover that private life insurance is often more accessible, flexible, and cost-effective than you might think.

Whether you’re looking for stable premiums, customizable coverage, or alternatives like annuities to protect your retirement savings, the key is taking action.

You owe it to yourself and your loved ones to explore every option. At US VetWealth, we’re here to guide you every step of the way, offering personalized solutions that fit your unique needs as a veteran.

Get Started

Please don’t wait until it’s too late to secure the protection your family deserves. Contact US VetWealth today for a free quote—your first step toward financial peace of mind.

With access to over 70 life insurance carriers and a deep understanding of veterans’ unique challenges, we’ll help you find the best solution to safeguard your future. We understand that every veteran’s financial situation is distinct, which is why our tailored strategies are designed to meet your specific needs. To explore your options and learn more about our wealth insurance approach, don’t hesitate to reach out for expert guidance.

Ready to protect your family? Click here to request your free quote or schedule a consultation now.