H.R. 3576: Veterans’ Life Insurance Expansion and Integrity Act of 2025

This bill, titled the Veterans’ Life Insurance Expansion and Integrity Act of 2025, proposes changes to the life insurance programs available to veterans through the Department of Veterans Affairs (VA). Here are the main points of what the bill aims to accomplish:

Expansion of Life Insurance Programs

The bill seeks to broaden the eligibility criteria for certain life insurance benefits provided by the VA. Specifically, it modifies the existing law to allow more veterans to apply for life insurance without the previous restrictions based on service-connected disabilities:

• The previous requirement that the veteran must have a service-connected disability to apply for life insurance has been removed.
• Veterans will now be able to apply for insurance up until they reach 81 years of age, instead of being restricted to those with service-related disabilities.

Reporting Requirements

Additionally, the bill mandates a study and report from the Secretary of Veterans Affairs within two years of its enactment. This report will include:

• The number of veterans enrolled in the life insurance program.
• The claims filed and insurance payments made under the program.
• An evaluation of the financial stability of the program and the sufficiency of premiums.
• Any contracts or policies that were cancelled or voided due to administrative errors.

Contestability of Insurance Policies

The bill introduces new rules concerning the contestability of insurance contracts or policies that may have been issued due to administrative errors. It includes the following provisions:

• If the VA decides to cancel or void an insurance policy due to an administrative error, the insured must be notified and given an opportunity to provide evidence that an error did not occur.
• The insured must receive prior notice along with an explanation of the error.
• There will be a time frame of at least 90 days for the insured to respond and submit evidence, and the VA must respond to this evidence within 180 days.

Definition of Administrative Error

The bill defines "administrative error" as any clerical or processing mistake that led to the issuance of insurance coverage to someone who was ineligible at the time the policy was issued.

Effective Date

The amendments proposed by the bill will take effect one year after its enactment.

Relevant Companies

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