If a veteran or other qualified borrower passes away prior to the full repayment of their VA loan, the loan payments will then become the responsibility of the individual's spouse, or may pass to the veteran's estate. There is a continued obligation to make the VA loan payments regardless of who the loan is passed to, although the Department of Veterans Affairs does have a Leniency Policy which can assist individuals with regard to forbearance and for those experiencing temporary financial hardships.

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A simple way to prevent the repayment obligation being passed to another individual is to obtain mortgage life insurance. Mortgage life insurance is an insurance policy that is meant to pay off your mortgage in the occurrence of the borrower's death while the mortgage is not fully paid. This insurance option can be used for any type of mortgage, including a VA home loan. Mortgage life insurance plans are not available through the VA, however, and must be acquired through a qualified private insurance company.

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