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

This section expands eligibility for the Department of Veterans Affairs life insurance program (previously the service-disabled veterans insurance program) to all veterans who apply before attaining 81 years of age (previously limited to service-disabled veterans, or those over age 81 who filed a compensation claim before that age, were later determined service-connected disabled, and applied within two years of that determination). (As background, the program provides whole-life policies granted by the United States against the veteran's death, with coverage amounts of $10,000, $20,000, $30,000, $40,000, or a higher maximum if determined administratively and actuarially sound by the Secretary; premiums are credited to, and payments made from, a Treasury revolving fund invested in special U.S. obligations.) The section (1) renames the program and relevant statutory headings as "Veterans life insurance"; (2) requires the Secretary, not later than two years after enactment, to submit a report to the congressional Veterans' Affairs Committees on program enrollment, claims, payments, policy cancellations due to administrative error, solvency, premium sufficiency, and related cost savings; and (3) specifies an effective date of one year after enactment.

This section modifies the contestability provisions for Department of Veterans Affairs (VA) insurance policies (i.e., under 38 U.S.C. ch. 19) to permit cancellation or voiding due to administrative error (defined as a clerical, technical, or processing mistake by the Secretary issuing, reinstating, or converting a policy to an ineligible individual), notwithstanding the general two-year incontestability rule. For such actions, it requires (1) prior notice to the insured explaining the error and at least 90 days to submit evidence of no error; (2) Secretary review of submitted evidence within 180 days; and (3) a prohibition on such cancellations or voidings after one year from issuance, reinstatement, or conversion. The changes apply to all VA insurance policies regardless of effective date.