The Department of Veterans Affairs is in the middle of its first-ever premium holiday for Veterans’ Group Life Insurance (VGLI), with premiums waived for three months, November 2026 through January 2027. VA announced the holiday on September 16, 2026, and it covers more than 457,000 veterans who hold VGLI policies.
VA says the average premium is about $110 a month, so the average policyholder is set to save about $330, and the department puts the total at nearly $150 million. The waiver applies to policies that are current, it is automatic, and it is a waiver of premiums rather than a payment sent to anyone.
What the VGLI premium holiday covers
VA’s press release describes VGLI as self-funded and says its financial performance made the holiday possible. Premiums vary by age and coverage amount, which is why the $110 average and $330 average savings are only averages.
The VGLI page gives the exact window: no premiums from November 1, 2026, through January 31, 2027, with coverage continuing during that time. The same page lists a sample rate of $25.00 a month for $250,000 of coverage at ages 35 to 39, using rates as of July 1, 2025. For that sample policy, three waived months would come to $75, simple arithmetic on the listed rate rather than a figure VA published.
VA says eligible policyholders do not need to apply. The department said it would notify them by letter or email.
Inside the kit: For veteran households sorting through VA mail and email during the holiday, the pension-poacher warning signs and a claim tracker sit in one place, so each notice can be logged and each unfamiliar offer checked against what VA actually sent. Open The Veterans Benefits Action Kit.
Which VGLI policies qualify and which do not
Eligibility turns on the status of the policy. VA’s premium holiday FAQ says a policy must have active coverage on November 1, 2026. Coverage that lapsed or was canceled on or before October 31, 2026, is not eligible. The press release uses similar wording: the policy must be current and not lapsed or canceled for nonpayment.
The FAQ also sets out rules for people whose coverage starts during the holiday. A first premium is always required and is not covered. A policy that takes effect before November 1, 2026, gets November, December and January waived. One that takes effect in November gets December and January, one that takes effect in December gets January, and coverage effective on or after January 1, 2027, gets no holiday benefit. The FAQ says the same timing applies to people whose SGLI Disability Extension is ending.
How VGLI deductions, AutoPay and bank bill pay are handled
The FAQ says no action is needed for premiums deducted from military retirement pay or VA disability pay. Those deductions are paused during the holiday and resume automatically afterward.
The same goes for AutoPay, according to the FAQ: it collects premiums only for months outside the holiday, including for semi-annual and annual payers. VA’s AutoPay page describes how enrollment works and says AutoPay requires current premiums. The sources do not address allotments or electronic funds transfers separately from the deductions and AutoPay described above.
Bank bill pay is different. A recurring payment set up through a bank is not controlled by VA or by the insurer, so the FAQ tells policyholders to ask the bank to stop it effective November 1, 2026, and restart it effective February 1, 2027. The FAQ adds that monthly payers may receive a January bill for the February premium.
Prepaid premiums, credits and refunds
Policyholders who paid ahead for holiday months can take a three-month credit on the policy or request a refund, according to the press release. The FAQ says that for quarterly, semi-annual or annual payers, the credit posts automatically to the next billing statement, and that anyone who does not see it should check that statement.
Payments made by accident for holiday months are credited to future bills by default. To ask for a refund instead, the FAQ points to an email to osgli.osgli@prudential.com or a call to the Office of Servicemembers’ Group Life Insurance (OSGLI) at 800-419-1473, Monday through Friday, 8 a.m. to 5 p.m. Eastern. The FAQ says callers should answer “No” to the first phone-menu question about the VA Life Insurance Program for Disabled Veterans or servicemembers who left before August 1974.
The costly mistake: a past-due VGLI balance
The holiday does not erase what is already owed. The FAQ says failure to pay a past-due balance will result in coverage lapsing after the holiday ends. A policy that is current on November 1 qualifies, but a balance left unpaid can still cost the coverage on February 1.
The VA AutoPay page adds a related risk: if an AutoPay payment fails, AutoPay is canceled and the balance must be paid within 60 days of the original due date to keep coverage active. The other common error is the bank bill pay trap. A recurring bank payment that is not stopped will not be waived, and the FAQ says accidental holiday-month payments are credited to future bills unless a refund is requested. A bank payment that is stopped and never restarted is just as risky, since premiums resume after January 31.
Where to check a VGLI notice or ask a question
VA’s contact paths are the VGLI page, Ask VA at ask.va.gov, and OSGLI by phone or email. A letter or email about the holiday that asks for bank or payment details should be compared with those channels before anything is sent, since the holiday requires no action from eligible policyholders.
Policyholders unsure of their status can sign in to the online VGLI account at giosgli.prudential.com, which the FAQ lists as the place to pay a past-due balance online.
VA benefit news and the paperwork that follows it
The VGLI holiday is a life insurance waiver, and it asks nothing of eligible policyholders, yet VA letters and emails about it are landing in households that may also be weighing VA pension. Pension is a separate program from VGLI, and benefit news is also a moment when unfamiliar offers can reach veterans, which is what the pension-poacher warning signs are meant to help sort out.
The Veterans Benefits Action Kit is a 10-page kit covering the three VA pension levels including Aid & Attendance and how to file for free with VA Form 21P-527EZ, and it includes a claim tracker for keeping each piece of correspondence in order.
Read the pension-poacher warning signs in The Veterans Benefits Action Kit.
This article was created with AI assistance and reviewed for accuracy against Department of Veterans Affairs announcements and VGLI premium holiday guidance.
Elias Broderick specializes in residential and commercial real estate, with a focus on market cycles, property fundamentals, and investment strategy. His writing translates complex housing and development trends into clear insights for both new and experienced investors. At The Daily Overview, Elias explores how real estate fits into long-term wealth planning.
