VGLI Premium Holiday, November 2026 to January 2027: Who Pays Nothing and What Bill-Pay Users Must Do
VA is skipping three months of VGLI premiums. It is automatic for most policyholders, but bank bill-pay users have to stop their own payments, new enrollees still pay a first month, and SGLI, FSGLI and VALife are not part of it. Here is what the holiday is worth by age and coverage, from VA's own premium table.
The bottom line up front
- 1.No VGLI premium is due for November 2026, December 2026 or January 2027 if the policy is active on November 1, 2026.
- 2.It is automatic for retired-pay and VA compensation deductions and for AutoPay; bank bill-pay users must stop payments effective November 1, 2026 and restart February 1, 2027.
- 3.The first premium of a new VGLI policy is never waived; separating on or after September 2, 2026 usually means no holiday months.
- 4.SGLI, FSGLI, TSGLI, VALife and S-DVI are not included, and VA has no plans for other holidays.
- 5.At $500,000.00 the holiday is worth $90.00 at 29 and younger, $435.00 at 50 to 54 and $3,225.00 at 70 to 74.
No VGLI premium is due for November 2026, December 2026 or January 2027. VA announced the holiday in a September 16, 2026 news release, its "first-ever premium holiday" for Veterans' Group Life Insurance, and VA's premium holiday FAQ (last updated September 15, 2026) dates it "from November 1, 2026, through January 31, 2027." This is settled: the holiday is in effect now and coverage continues. What is not automatic is the payment side for one group, the policyholders who pay through their own bank's bill-pay service, and the holiday does not reach any other VA or SGLI program.
Bank bill pay: VA cannot stop your payment
VA's FAQ is direct: "You will need to contact your bank to stop recurring payments effective November 1, 2026, and restart them effective February 1, 2027." AutoPay and deductions from retired pay or VA compensation pause on their own. A bill-pay payment you forget to stop is not lost, but it sits as a credit on your policy until you ask for a refund. And do not forget the restart: the February 2027 premium is due as usual.
Who qualifies
The test is one date. "You are eligible for the Premium Holiday if your VGLI coverage is active on November 1, 2026." A policy cancelled, or one that lapsed, on or before October 31, 2026 gets nothing. VA's release puts the program at "more than 457,000 Veterans," and eligible policyholders "will automatically be exempted from three months of premium payments," with a letter or email to tell them. No form exists and none is needed.
A past-due balance is the trap. The FAQ says the holiday "does not eliminate any past-due balances," and that "failure to pay your past-due balance will result in your coverage lapsing after the Premium Holiday ends." Three free months do not cure a missed October premium.
What to do, by how you pay
| How you pay VGLI | What VA says to do | What happens |
|---|---|---|
| Deduction from military retired pay | Nothing | Deductions "will be paused" and "automatically resume afterward" |
| Deduction from VA disability compensation | Nothing | Same pause and automatic restart |
| Prudential AutoPay | Nothing | AutoPay "will only collect premiums for months not covered" |
| Your bank's bill-pay service | Stop it effective November 1, 2026; restart effective February 1, 2027 | Any holiday-month payment becomes a credit, or a refund on request |
| Quarterly, semi-annual or annual billing | Nothing | Holiday months already paid are "credited on your next billing statement," possibly across two bills |
Bills do not stop entirely. A monthly payer "may receive a bill in January for premium due for February," and a quarterly or annual payer may see premiums due during the holiday for months outside it. A refund of a payment sent by mistake goes through the Office of Servicemembers' Group Life Insurance at osgli.osgli@prudential.com or 800-419-1473, Monday through Friday, 8:00 a.m. to 5:00 p.m. Eastern. The FAQ adds a phone tip: say "No" to the first recorded question to reach a VGLI representative.
Separated this year? Your start date decides how many months you get
This is the part most coverage skipped. "Your first premium payment is always required to activate your coverage," and it is not part of the holiday. SGLI runs 120 days after separation, so "the earliest possible VGLI effective date is the 121st day after separation." The FAQ's four cases map onto 2026 separation dates like this, assuming VGLI starts the day SGLI ends, counting the day after separation as day 1. A later application gives a later start date, so read the effective date on your OSGLI paperwork.
| Separation date, 2026 | Earliest VGLI effective date | First premium (you pay) | Holiday months |
|---|---|---|---|
| On or before July 2 | October 31 or earlier | Before November | November, December, January |
| July 3 to August 1 | November 1 to November 30 | November | December, January |
| August 2 to September 1 | December 1 to December 31 | December | January |
| September 2 or later | January 1, 2027 or later | Your first month | None |
The same rule covers a member coming off the SGLI Disability Extension into VGLI: the FAQ applies the identical four examples. Coverage effective "on or after January 1, 2027" gets nothing, "because your required first payment covers your insurance beyond the end of the Premium Holiday period."
SGLI, FSGLI, TSGLI, VALife and S-DVI are not included
The FAQ answers the question in one word, "No," and then: "The Premium Holiday applies only to VGLI coverage. SGLI, FSGLI and/or TSGLI coverage is not affected." VALife and Service-Disabled Veterans Insurance, which VA runs directly, "are also not affected." An Airman on active duty keeps paying SGLI and any spouse FSGLI from mid-month and end-of-month pay exactly as before. VA's reason is that SGLI, FSGLI and VGLI rates were already cut in 2025, and VGLI holders "must budget for premium rates that increase every five years based on age." VA says it "has no plans to enact a premium holiday for any other insurance programs at this time."
What the holiday is worth, by age and coverage
VGLI is priced only by age and coverage, so the holiday is worth exactly three monthly premiums. The table takes VA's premium table "as of July 1, 2025," the one on VA's VGLI page today, and multiplies by three. VA's own average is about $110.00 a month and $330.00 per policyholder, which sits between the 45 to 49 and 50 to 54 rows at $500,000.00.
| Age | $100,000.00: monthly / 3 months | $250,000.00: monthly / 3 months | $500,000.00: monthly / 3 months |
|---|---|---|---|
| 29 and younger | $6.00 / $18.00 | $15.00 / $45.00 | $30.00 / $90.00 |
| 35 to 39 | $10.00 / $30.00 | $25.00 / $75.00 | $50.00 / $150.00 |
| 40 to 44 | $14.00 / $42.00 | $35.00 / $105.00 | $70.00 / $210.00 |
| 50 to 54 | $29.00 / $87.00 | $72.50 / $217.50 | $145.00 / $435.00 |
| 60 to 64 | $85.00 / $255.00 | $212.50 / $637.50 | $425.00 / $1,275.00 |
| 70 to 74 | $215.00 / $645.00 | $537.50 / $1,612.50 | $1,075.00 / $3,225.00 |
| 80 and older | $440.00 / $1,320.00 | $1,100.00 / $3,300.00 | $2,200.00 / $6,600.00 |
A 25-year-old whose $500,000.00 policy started before November saves $90.00. A 72-year-old with the same coverage saves $3,225.00, which is why VA aimed the holiday at VGLI. Price your own policy in the SGLI / VGLI calculator.
Two edge cases go your way. If your age bracket rises during the holiday, "the additional premium will be covered." If you elect the $25,000.00 increase and it takes effect during the holiday, the higher premium is covered too, though you pay it from February. A cancellation or decrease requested now takes effect only "after the Premium Holiday concludes on January 31, 2027."
Worked example
Worked example: a retired E-7, age 47, $400,000.00 of VGLI, paid by bank bill pay
Had the same retiree paid by retired-pay deduction or AutoPay, the result is identical with no call to the bank. Left-running payments are credited, not lost; ask OSGLI for a refund if you would rather have the cash.
If you hold VGLI alongside a retired check, the High-3 calculator and the SBP calculator show what the family has besides the policy, and the VA disability calculator shows the rating that opens VALife. Premiums shown are VA's VGLI table as of July 1, 2025, the FY2026 rates still in force on November 7, 2026. Always verify with your finance office and OSGLI before making financial decisions.
Sources
- U.S. Department of Veterans Affairs, news release, September 16, 2026, VA announces insurance premium holiday that will save Veterans nearly $150 million: first-ever VGLI premium holiday, three months starting November 2026 and ending January 2027; more than 457,000 participants; about $110.00 a month average premium and $330.00 average saving; eligible if the policy has not lapsed or been cancelled for non-payment; automatic, letter or email notice; prepaid premiums credited or refunded (https://news.va.gov/press-room/va-announces-insurance-premium-holiday-that-will-save-veterans-nearly-150-million/)
- U.S. Department of Veterans Affairs, Veterans' Group Life Insurance (VGLI) Premium Holiday Frequently Asked Questions, last updated September 15, 2026, read November 7, 2026: November 1, 2026 through January 31, 2027; active on November 1, 2026; first premium required; 121st day after separation; four effective-date examples; past-due balances; billing; retired pay and VA compensation deductions paused; AutoPay; bank bill pay stop November 1, 2026 and restart February 1, 2027; credits and refunds (osgli.osgli@prudential.com, 800-419-1473); age increases and the $25,000.00 increase covered; cancellations effective after January 31, 2027; SGLI, FSGLI, TSGLI, VALife and S-DVI not affected (https://www.benefits.va.gov/insurance/vgli_premium_holiday_faqs.asp)
- U.S. Department of Veterans Affairs, Veterans' Group Life Insurance (VGLI), read November 7, 2026: premium holiday alert "from November 1, 2026, through January 31, 2027"; monthly premium rates as of July 1, 2025 by age and coverage ($500,000.00: $30.00 at 29 and younger to $2,200.00 at 80 and older; $250,000.00 column and the $400,000.00 row at 45 to 49, $76.00, checked), matching server/data/vgli-premiums.json (https://www.va.gov/life-insurance/options-eligibility/vgli/)
Figures reflect 2026 rates and regulations. This guide is general information, not personalized financial or tax advice. Always verify with your finance office or a tax professional before making a decision. How we research and source: our methodology.
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REF: Military Toolkit Guides, effective 2026
Official 2026 DoD, DFAS, DTMO, IRS, and VA sources. See each guide’s Sources list
Results are estimates. Always verify with your finance office.
Reviewed by Guilherme Correia · Military Toolkit editorial