Army Disability Insurance: Filling the VASRD Gap

VA disability ratings often fall short of full income replacement. Private disability insurance bridges the gap between VA payments and what you actually need to live on. Here is how the system works and how to protect yourself.

Understanding VA Disability Ratings

VA disability ratings run from 0% to 100% in 10% increments. A 0% rating means a service-connected condition is recognized but no compensation is paid. Even a 10% rating pays only $171.23/month (2026 rates). For soldiers with mortgages and families, this falls dramatically short of income replacement.

The Survivor Benefit Plan (SBP) and SDP

The Survivor Benefit Plan provides a monthly annuity to dependents of retired service members. The Survivor Disability Plan (SDP) allows deployed soldiers to contribute up to $10,000 to a government-matched account - a key financial tool for disability planning before separation.

Private Disability Insurance for Soldiers

Private short-term or long-term disability insurance fills the gap between VA payments and your actual income replacement needs. Key features to look for:

• Own-occupation definition: Pays if you cannot perform your specific military MOS duties (not just "any job")
• Residual disability: Partial payments when you can work part-time but not full capacity
• Non-cancelable: Carrier cannot cancel or raise rates as long as you pay premiums
• Benefit period: Choose 2-year, 5-year, or to age 65 benefit periods

VA Disability vs Private DI: What You Need