HR6813-119

What This Bill Does

The VA Insurance Improvement Act changes three veterans insurance programs. First, it removes service-disabled from the section 1922B life insurance heading and eligibility rules, so veterans may apply for VA life insurance before age 81 without needing a service-connected disability. Second, it lets the Secretary determine administrative costs properly allocable to Veterans Mortgage Life Insurance and reimburse VA General Operating Expenses and Information Technology Systems accounts from the Veterans Insurance and Indemnities account. Third, it adds Space Force to the service branches covered by Traumatic Servicemembers Group Life Insurance definitions.

Who Benefits and How

Veterans without service-connected disabilities benefit because VA life insurance becomes available if they apply before age 81. Older veterans benefit from a clear age-based application deadline. VA insurance program offices benefit from authority to reimburse operating and IT accounts for mortgage life insurance administration. Space Force members benefit from explicit inclusion in TSGLI eligibility.

Who Bears the Burden and How

VA insurance staff must update eligibility, forms, systems, and outreach to handle a larger pool of applicants. VA budget staff must calculate and transfer administrative reimbursements among appropriations accounts. Veterans Insurance and Indemnities funds bear the reimbursement cost. Private insurers may face additional competition from expanded VA life insurance access.

Key Provisions

• Expands VA life insurance eligibility to veterans who apply before age 81 regardless of service-connected disability status.
• Renames section 1922B as Veterans Affairs life insurance.
• Authorizes VA reimbursement of operating and IT accounts for Veterans Mortgage Life Insurance administrative costs.
• Adds Space Force members to TSGLI service-branch eligibility.