I’m Patrick Henigan, and before I was an insurance agent, I was in the military. I’ve walked in your boots, and I’ve seen too many fellow veterans make avoidable mistakes when it comes to insurance.
Some vets assume the VA covers everything. Some don’t realize they qualify for discounts. Others carry coverage they don’t need or skip coverage they definitely do. This guide is written specifically for you — no corporate fluff, just the stuff you need to know.
How VA Benefits and Private Insurance Overlap
Let’s start with the biggest question: what does the VA actually cover, and where do you still need private insurance?
VA Health Care
The VA provides health care services at VA medical centers and clinics. But there are limitations:
- It’s not traditional health insurance. VA health care covers treatment at VA facilities. It doesn’t work like an insurance card you can use at any doctor or hospital.
- It doesn’t cover your family. VA health care is for you. Your spouse and kids need their own coverage.
- Wait times can be long. Depending on your location and the type of care, getting an appointment can take weeks or months.
- It doesn’t satisfy ACA requirements for dependents or for you if you’re not enrolled.
Bottom line: VA health care is a valuable benefit, but most veterans still need some form of private health insurance — especially for their families, for non-VA providers, and for emergencies when a VA facility isn’t accessible. Explore your personal insurance options to fill the gaps.
VA Life Insurance (SGLI/VGLI)
While you’re in the service, you have SGLI (Servicemembers’ Group Life Insurance) — $400,000 in coverage for very low premiums. When you separate, you can convert to VGLI (Veterans’ Group Life Insurance).
Here’s the catch with VGLI:
- Premiums increase every 5 years based on your age
- By your 40s and 50s, VGLI can be significantly more expensive than private term life insurance
- VGLI doesn’t require a medical exam, which is an advantage if you have service-connected health issues
What to do: When you separate, compare VGLI premiums with private term life insurance quotes. If you’re in good health, private term life is often cheaper. If you have health conditions that would make private life insurance expensive or unavailable, VGLI’s guaranteed acceptance is a major advantage.
VA Home Loan Benefits
The VA home loan is one of the best benefits available to veterans:
- No down payment required
- No private mortgage insurance (PMI) — this alone can save $100-$300/month
- Competitive interest rates
- Limited closing costs
But you still need homeowners insurance. The VA requires it as a condition of the loan, just like any other mortgage lender. The VA doesn’t provide homeowners insurance — you buy it on the open market.
Insurance Discounts for Veterans
Many insurance carriers offer military and veteran discounts. Here’s what to look for:
Auto Insurance Discounts
- Military/veteran discount: 5-15% off your premium
- Good driver discount: Clean driving record saves you money
- Deployed vehicle storage: If your car is stored during deployment, you can reduce coverage to comprehensive-only
- USAA: Available to veterans and their families, often has very competitive rates
Homeowners Insurance Discounts
- Military/veteran discount: Available from many carriers
- Claims-free discount: No claims in the past 3-5 years
- New home discount: Recently purchased or newly built homes
- Security system discount: Alarm systems, cameras, smart home devices
Life Insurance
- Good health discounts: If you’re in good physical condition from your service, you may qualify for preferred rates
- Non-smoker discounts: Significant savings
- Compare VGLI to private: You might save substantially with a private term policy
How to Find These Discounts
Here’s the thing — not every carrier offers the same discounts, and some require you to ask. An independent agent can:
- Identify which carriers have the best veteran discounts
- Stack multiple discounts (veteran + bundling + claims-free + security system)
- Compare USAA against other options (USAA is great, but they’re not always the cheapest)
Common Insurance Mistakes Veterans Make
Mistake 1: Assuming the VA Covers Everything
As we covered above, VA benefits have gaps — especially for family coverage, dental, vision, and non-VA emergency care. Don’t assume you’re fully covered without checking.
Mistake 2: Sticking with VGLI Too Long
VGLI is easy and guaranteed — but it gets expensive. If you separated in your 20s or 30s and you’re in reasonable health, private term life insurance can provide the same coverage for a fraction of the cost. Review this every few years.
Mistake 3: Not Mentioning Veteran Status
Always tell your insurance agent you’re a veteran. Every time. For every type of insurance. Discounts are real, but they’re not always applied automatically.
Mistake 4: Skipping Renters Insurance
A lot of younger veterans transitioning out of the service rent their first apartment and skip renters insurance. At $15-30/month, renters insurance covers your belongings, provides liability protection, and covers temporary housing if your place becomes uninhabitable. It’s one of the best deals in insurance.
Mistake 5: Not Using an Independent Agent
USAA is popular with veterans — and for good reason. But they’re not always the cheapest or the best fit for every situation. An independent agent can compare USAA against other veteran-friendly carriers and make sure you’re getting the best overall package.
Your Veteran Insurance Checklist
Here’s a quick checklist for veterans at any stage:
Transitioning out of service:
- Compare VGLI rates with private term life insurance
- Set up auto insurance in your new state (rates change by location)
- Get renters insurance if you’re renting
- Review health insurance options for you and your family
Buying your first home:
- Use your VA home loan benefit (no PMI!)
- Shop homeowners insurance through an independent agent
- Ask about veteran discounts on every policy
- Consider an umbrella policy to protect your assets
Established veteran:
- Review all your policies annually
- Make sure veteran discounts are applied
- Re-evaluate VGLI vs. private life insurance
- Consider bundling home + auto for additional savings
- Add an umbrella policy if you haven’t already
From One Veteran to Another
I started Valor Insurance Group because I wanted to serve people the way the military taught me — with integrity, discipline, and follow-through. I know what it’s like to transition out and feel overwhelmed by all the civilian stuff nobody prepares you for.
Insurance shouldn’t be one of those headaches. Whether you’re just separating, buying your first home with a VA loan, or you’ve been out for decades and want to make sure you’re not overpaying — I’m here to help.
Have questions? Call Patrick at 303-994-7814 or visit patrickhenigan.com/contact.