Life Insurance
Transition to Electronic Payments
Transition to Electronic Payments—What Insureds & Beneficiaries Sending and Receiving Paper Checks Need to Know
Effective October 2025, VA Insurance Service will significantly reduce the receipt and issuance of paper checks for insurance policyholders and beneficiaries to comply with the President’s Executive Order (EO) 14247, which mandates all federal agencies transition to electronic funds transfer (EFT) by September 30, 2025. This change is part of a broader government-wide initiative to modernize payment systems and enhance service delivery. By moving to electronic payments exclusively, we aim to improve efficiency, security, and ensure prompt receipt and issuance of payments.
Who Does This Affect?
This transition primarily affects insureds who submit their premium payments directly to the VA Insurance, and beneficiaries who do not have a bank account.
Why the Shift to Electronic Payments?
The transition from paper checks to electronic payments offers several important advantages:
- Speed and Efficiency: Electronic Funds Transfers (EFTs) are processed more quickly than paper checks, helping beneficiaries receive their payments on time without delays.
- Cost Savings: According to the U.S. Department of the Treasury, issuing a paper check costs about 50 cents, whereas an EFT costs less than 15 cents. This shift could save the federal government millions of dollars annually.
- Enhanced Security: Paper checks are 16 times more likely to be lost or stolen compared to electronic payments, increasing the risk of fraud. Electronic payments provide a safer, more secure way to receive benefits.
What We’re Doing to Help
We’re proactively sending notices to people who currently send and receive paper checks, to explain the upcoming change and highlight the benefits of switching to electronic payments. In addition, notification letters will include information on all of our electronic payment options. These efforts will ensure a smooth transition and help policyholders and beneficiaries understand their options.
Your Payment Options
There are multiple ways you can pay your VA life insurance premiums and multiple ways to receive payment from VA Insurance:
- Pay.gov – Access your online policy account or visit the Pay.gov site and submit your VA Life Insurance Payment via ACH, debit card, credit card, PayPal or digital wallet.
- Pre-Authorized Deductions – Request automatic monthly bank deductions from your checking account by completing and submitting VA Form 29-0165 - VAMatic Enrollment/Change.
- Deduction from Benefits – Request an automatic monthly premium deduction from VA compensation check by completing and submitting VA Form 29-888 - Insurance Deduction Authorization From Benefits.
- Deduction from Military Retirement Pay – Request an automatic monthly premium deduction from your military retirement pay by calling us at 1-800-669-8477.
- Online Bill Pay – Payments can be made through your preferred banking institution’s online Bill Pay feature. Select “VA Life Insurance” as the Payee and enter your insurance policy number as the Account Number. The VA Insurance Collection address is PO Box 4019, Portland, OR 97208-4019.
- The safest and most convenient way to receive a payment from VA Insurance is by enrolling in direct deposit. Use VA Form 29-0309, Direct Deposit Enrollment/Change to begin receiving payments electronically from VA Insurance.
- For people without a bank account;
- You can visit the FDIC website or the National Credit Union Administration using their Credit Union Locator Tool to find a bank that best suits your needs. These links will provide information on where to find a bank or credit union that can open an account online and how to choose the right account for you.
- VA also has the Veterans Benefits Banking Program (VBBP) which provides access to financial services at participating banks. Additional information on the Veterans Benefits Banking Program (VBBP).
You can update your payment information anytime through your Online Policy Access account.
