US Code

Public Law 119-73 (01/23/2026)

38 U.S.C. § 2106

Veterans’ mortgage life insurance

(a)
The Secretary shall insure any individual under 70 years of age who has received assistance under this chapter against the death of the individual except for an individual who—
(1)
elects in writing to not receive insurance under this section;
(2)
fails to respond in a timely manner to a request from the Secretary for information on which the premium for such insurance can be based; or
(3)
section 2102B of this title receives such assistance under .
(b)
The amount of insurance provided an individual under this section may not exceed the lesser of $150,000, or after , $200,000, or the amount of the loan outstanding on the housing unit. The amount of such insurance shall be reduced according to the amortization schedule of the loan and may not at any time exceed the amount of the outstanding loan with interest. If there is no outstanding loan on the housing unit, insurance is not payable under this section. If an eligible individual elects not to be insured under this section, the individual may thereafter be insured under this section, but only upon submission of an application, payment of required premiums, and compliance with such health requirements and other terms and conditions as may be prescribed by the Secretary.
(c)
The premiums charged an individual for insurance under this section shall be paid at such time and in such manner as the Secretary prescribes. The rates for such premiums shall be based on such mortality data as the Secretary considers appropriate to cover only the mortality cost of insuring standard lives. In the case of an individual receiving compensation or other cash benefits paid to the individual by the Secretary, the Secretary shall deduct from such compensation or other benefits the premiums charged the individual under this section.
(d)
(1)
The United States shall bear the costs of insurance under this section to the extent that such costs exceed premiums established by the Secretary. Premiums collected on insurance under this section shall be credited to the “Veterans Insurance and Indemnities” appropriation account, and all disbursements of insurance proceeds under this section shall be made from that account.
(2)
There are authorized to be appropriated to the Secretary for such account such amounts as may be necessary to carry out this section.
(e)
section 3722 of this title Any amount of insurance in force under this section on the date of the death of an individual insured under this section shall be paid to the holder of the mortgage loan, for payment of which the insurance was granted, for credit on the loan indebtedness. Any liability of the United States under such insurance shall be satisfied when such payment is made. If the Secretary is the holder of the mortgage loan, the insurance proceeds shall be credited to the loan indebtedness and deposited in the Veterans Housing Benefit Program Fund established by .
(f)
The Secretary may prescribe such regulations relating to eligibility for insurance under this section, the maximum amount of insurance, the effective date of insurance, the maximum duration of insurance, and other pertinent matters not specifically provided for in this section as the Secretary determines are in the best interest of veterans or the United States.
(g)
The amount of the insurance in force at any time shall be the amount necessary to pay the mortgage indebtedness in full, except as otherwise limited by subsection (b) of this section or regulations prescribed by the Secretary under this section.
(h)
The Secretary shall issue to each individual insured under this section a certificate setting forth the benefits to which the individual is entitled under the insurance.
(i)
Insurance under this section shall terminate upon whichever of the following events first occurs:
(1)
Satisfaction of the individual’s indebtedness under the loan upon which the insurance is based.
(2)
Termination of the individual’s ownership of the property securing the loan.
(3)
Discontinuance of payment of premiums by the individual.
(j)
Termination of life insurance under this section shall not affect the guaranty or insurance of the loan by the Secretary.

Pub. L. 92–95, § 185 Stat. 320Pub. L. 94–433, title III, § 30290 Stat. 1377Pub. L. 99–576, title VII, § 701(49)100 Stat. 3295Pub. L. 100–322, title III, § 333(a)(1)102 Stat. 537Pub. L. 102–83105 Stat. 404–406Pub. L. 102–568, title II, § 204(a)106 Stat. 4325Pub. L. 103–446, title XII, § 1201(h)(2)108 Stat. 4688Pub. L. 105–368, title VI, § 602(e)(2)112 Stat. 3347Pub. L. 107–330, title III, § 302116 Stat. 2824Pub. L. 110–289, div. B, title VI, § 2602(b)(6)122 Stat. 2860Pub. L. 111–275, title IV, § 407(a)124 Stat. 2880Pub. L. 115–177, § 1(c)(4)132 Stat. 1377(Added , , , § 806; amended , , ; , , ; , , ; renumbered § 2106 and amended , §§ 4(b)(1), (2)(E), 5(a), (c)(1), , ; , , ; , , ; , , ; , , ; , , ; , , ; , , .)

Editorial Notes

Amendments

Pub. L. 115–1772018—Subsec. (a). amended subsec. (a) generally. Prior to amendment, subsec. (a) read as follows: “The United States shall automatically insure any eligible individual age 69 or younger who is or has been granted assistance in securing a suitable housing unit under this chapter against the death of the individual unless the individual (1) submits to the Secretary in writing the individual’s election not to be insured under this section, or (2) fails to respond in a timely manner to a request from the Secretary for information on which the premium for such insurance can be based.”

Pub. L. 111–2752010—Subsec. (b). substituted “$150,000, or after , $200,000,” for “$90,000”.

Pub. L. 110–289, § 2602(b)(6)(A)2008—Subsec. (a). , (F), substituted “any eligible individual” for “any eligible veteran” and “the individual’s” for “the veterans’ ” and substituted “the individual” for “the veteran” in two places.

Pub. L. 110–289, § 2602(b)(6)(B)Subsec. (b). , (F), (G), substituted “an individual” for “a veteran”, “an eligible individual” for “an eligible veteran”, and “the individual” for “the veteran”.

Pub. L. 110–289, § 2602(b)(6)(F)Subsec. (c). , (G), substituted “the individual” for “the veteran” and “an individual” for “a veteran” in two places each.

Pub. L. 110–289, § 2602(b)(6)(C)Subsec. (e). , substituted “an individual” for “an eligible veteran”.

Pub. L. 110–289, § 2602(b)(6)(D)Subsec. (h). , (F), substituted “each individual” for “each veteran” and “the individual” for “the veteran”.

Pub. L. 110–289, § 2602(b)(6)(E)Subsec. (i). , (F), substituted “the individual” for “the veteran” and substituted “the individual’s” for “the veteran’s” in two places.

Pub. L. 107–330, § 302(1)2002—Subsec. (a). , inserted “age 69 or younger” after “any eligible veteran”.

Pub. L. 107–330, § 302(2)Subsec. (i)(2) to (4). , redesignated pars. (3) and (4) as (2) and (3), respectively, and struck out former par. (2) which read as follows: “The veteran’s seventieth birthday.”

Pub. L. 105–368section 3722 of this title1998—Subsec. (e). substituted “deposited in the Veterans Housing Benefit Program Fund established by ” for “, as appropriate, deposited in either the direct loan or loan guaranty revolving fund established by section 3723 or 3724 of this title, respectively”.

Pub. L. 103–4461994— substituted “Veterans’ mortgage life insurance” for “Veterans’ Mortgage Life Insurance” as section catchline.

Pub. L. 102–5681992—Subsec. (b). struck out “initial” after “The” and substituted “$90,000” for “$40,000”.

Pub. L. 102–83, § 5(a)section 806 of this title1991—, renumbered as this section.

Pub. L. 102–83, § 4(b)(1)Subsecs. (a) to (d). , (2)(E), substituted “Secretary” for “Administrator” wherever appearing.

Pub. L. 102–83, § 5(c)(1)Subsec. (e). , substituted “3723 or 3724” for “1823 or 1824”.

Pub. L. 102–83, § 4(b)(1), (2)(E), substituted “Secretary” for “Administrator”.

Pub. L. 102–83, § 4(b)(1)Subsecs. (f) to (h), (j). , (2)(E), substituted “Secretary” for “Administrator” wherever appearing.

Pub. L. 100–3221988— amended section generally, substituting provisions relating to veterans’ mortgage life insurance for former provisions relating to mortgage protection life insurance.

Pub. L. 99–576, § 701(49)(A)1986—Subsec. (b). , substituted “the veteran’s” for “his”.

Pub. L. 99–576, § 701(49)(B)Subsec. (c). , substituted “the veteran” for “he” before “may thereafter”.

Pub. L. 99–576, § 701(49)(C)Subsec. (d). , substituted “the veteran’s” for “he” in last sentence.

Pub. L. 99–576, § 701(49)(D)(i)Subsec. (g)(2). , substituted “the Administrator” for “he” in two places, “the Administrator’s” for “his”, and “the Administrator” for “him” in two places.

Pub. L. 99–576, § 701(49)(D)(ii)Subsec. (g)(3). , substituted “the veteran” for “he”.

Pub. L. 99–576, § 701(49)(D)(iii)Subsec. (g)(5). , substituted “the Administrator” for “him” in two places.

Pub. L. 99–576, § 701(49)(E)Subsec. (h). , substituted “the Administrator’s” for “his” in first sentence and “the veteran’s” for “his” in second sentence.

Pub. L. 94–4331976—Subsec. (c). substituted $40,000 for $30,000.

Statutory Notes and Related Subsidiaries

Effective Date of 2010 Amendment

Pub. L. 111–275, title IV, § 407(b)124 Stat. 2880

“The amendment made by subsection (a) [amending this section] shall take effect on .”
, , , provided that:

Effective Date of 1998 Amendment

Pub. L. 105–368, title VI, § 602(f)112 Stat. 3348

section 3722 of this title“This title [enacting sections 3722 and 3771 to 3775 of this title, amending this section and sections 3702, 3703, 3711, 3720, 3727, 3729, 3733 to 3735, and 3763 of this title, repealing sections 3723 to 3725 of this title, and enacting provisions set out as a note under ] and the amendments made by this title shall take effect on .”
, , , provided that:

Effective Date of 1992 Amendment

Pub. L. 102–568section 205 of Pub. L. 102–568section 1922A of this titleAmendment by effective , see , set out as an Effective Date note under .

Effective Date of 1988 Amendment

Pub. L. 100–322, title III, § 333(b)102 Stat. 539

“The amendment made by subsection (a) [amending this section] shall take effect on the first day of the fourth month beginning after the date of the enactment of this Act [].”
, , , provided that:

Effective Date of 1976 Amendment

Pub. L. 94–433section 406 of Pub. L. 94–433section 1101 of this titleAmendment by effective , see , set out as a note under .

Savings Provision; Discontinuance of Contract Program; Definition

Pub. L. 100–322, title III, § 333(c)102 Stat. 539

“(c)

Savings Provision .—

Mortgage protection life insurance granted to any veteran under the former section 806 shall continue in force with the United States as insurer, subject to the terms of subsection (d). Nothing in that subsection shall impair any rights of any veteran or mortgage loan holder under the former section 806 that matured before the effective date specified in subsection (b) [see Effective Date of 1988 Amendment note above].
“(d)

Discontinuance of Contract Program .—

(1)
Effective as of the effective date specified in subsection (b), the Administrator shall discontinue the policy of insurance purchased in accordance with the former section 806.
“(2)
All premiums collected or received by the insurer on or after such effective date under a policy purchased under the former section 806 shall be promptly forwarded to the Administrator and shall be credited to the ‘Veterans Insurance and Indemnities’ appropriation account. Any positive balance of the contingency reserve maintained by the insurer under such policy remaining after all charges have been made shall be payable to the Administrator and shall be deposited by the Administrator in such account, except that such balance may, upon the election of the insurer, be paid by the insurer in equal monthly installments over a period of not more than two years beginning on the date, after such effective date, that the Administrator specifies.
“(e)

Former SectionDefined 806 .—

For the purpose of subsections (c) and (d), the term ‘former section 806’ means section 806 [this section] of title 38, United States Code, as in effect on the day before the effective date specified in subsection (b).”
–(e), , , provided that: