Veterans who hold Veterans’ Group Life Insurance will skip three months of premium payments this winter. The Department of Veterans Affairs announced on September 16 that the waiver runs from November 2026 through January 2027 and totals nearly $150 million across the programme. Policyholders do not have to apply for it.
The VGLI premium holiday and the dates it covers
VA’s press release says the department “will save Veterans nearly $150 million in insurance premium payments starting in November.” The holiday covers three billing months: November 2026, December 2026 and January 2027. The release describes the mechanism as an exemption from three months of payments.
The figure is a programme-wide aggregate. It is not an amount any one veteran receives. The benefit takes the form of premiums that are exempted, not a payment sent to policyholders.
What the waiver is worth to an individual policyholder
More than 457,000 veterans are enrolled in the programme, and VA puts the average saving at about $330 per veteran across the three months. That matches the department’s stated average monthly premium of roughly $110, multiplied by three. Because the figures are averages, a policyholder paying a higher or lower monthly premium will save proportionally more or less.
VA Secretary Doug Collins framed the move as an affordability measure. “VA is all about making life better and more affordable for Veterans, and this premium holiday will help the men and women who served this nation keep more of their hard-earned money,” Collins said in the department’s announcement.
Why the holiday is limited to Veterans’ Group Life Insurance
The release scopes the waiver to Veterans’ Group Life Insurance, usually shortened to VGLI, and to no other VA life-insurance product. Veterans who carry a different VA policy, or who hold life insurance through a private company or an employer, are not part of this announcement, and the release names no equivalent waiver for them. Anyone unsure which VA policy they hold can check the department’s VGLI eligibility and options page, which VA points to for programme details.
The distinction matters for household budgets. A veteran paying a VGLI premium by monthly draft or invoice will see the three-month pause. A veteran paying for a different policy will not, and the premium on that policy continues as normal.
No application, and how VA says policyholders will be told
VA says eligible policyholders will be “automatically exempted from three months of premium payments.” No form, phone call or online request is part of the process described in the release. Veterans will be notified by letter or email, according to the announcement, and the release gives no date for when those notices go out.
Because nothing has to be submitted, the practical risk for policyholders lies in leftover payment arrangements rather than paperwork. A veteran who has set up an automatic bank draft or a recurring bill-pay instruction with a separate financial institution should watch the November statement to confirm that no VGLI premium was collected. The release does not describe a refund process for a payment taken in error, and VA’s guidance on that point has to come from the department directly. Veterans with questions about a specific policy can use the Ask VA portal and virtual agent, which the release lists for general inquiries.
How the $150 million figure breaks down
Three separate numbers sit inside the announcement, and each describes something different. The nearly $150 million is the total across the programme. The 457,000-plus figure counts veterans enrolled in VGLI. The $330 figure is an average per veteran, built on the average monthly premium of about $110. Reading any one of them alone can mislead: $330 is not what every veteran saves, and $150 million is not a sum paid out to anyone.
Premium size varies between policyholders, and the release does not publish a premium schedule or a range. The averages are therefore the only per-person figures VA has put on the record in this announcement.
What happens when the holiday ends
The announcement covers three months only, so February 2027 is the first month outside the exemption window. VA’s release names no further waiver beyond that point.
The release also describes no change in how premiums are calculated. Nothing in it describes an extension or a change to premium rates, so ordinary VGLI billing is the baseline once January 2027 has passed. Policyholders who budget around the premium will see the normal monthly payment return after the holiday, at an average of about $110 according to VA’s figures.
The department’s own numbers set the scale of the programme: a waiver of nearly $150 million, more than 457,000 enrolled veterans, a $330 average saving, and a premium holiday that begins in November and ends after January. Every one of those figures comes from VA’s September 16 announcement, and the department’s press room index showed no newer item carrying dollar figures as of October 3.
VA pension paperwork, separated from VA insurance
The premium holiday asks nothing of VGLI policyholders, but VA pension is a different benefit that does require a filing, and it is filed on VA Form 21P-527EZ. Veterans and surviving spouses with limited income who are weighing that claim still have the application itself to sort out.
The Veterans Benefits Action Kit includes the three VA pension levels, including Aid & Attendance, and a claim tracker for following a filing once it is submitted.
Click here to get The Veterans Benefits Action Kit →
AI assistance was used in producing this article, which was reviewed against the official documents it cites.
Warren Cohen is a finance writer based in Phoenix, Arizona, covering personal finance topics including credit, banking, and beginner investing. He earned his degree in business administration from Arizona State University and began his career working in consumer finance, where he gained direct experience with lending and credit systems. He now writes for personal finance websites and fintech platforms, focusing on clear, practical content that helps readers make informed financial decisions.
