# Virginia — State life and health insurance guaranty association benefit limits — how much is protected if your insurer fails

For Virginia, life insurance death benefit cap ($) is $300,000; life insurance cash value cap ($) is $100,000; annuity present value cap ($) is $250,000; health insurance benefit cap ($) is $500,000; other accident & sickness cover cap ($) is $100,000, verified against its source on 2026-08-19.

- **State:** Virginia _(our reading, not quoted from the source)_
- **Life insurance death benefit cap ($):** $300,000 _(verified: appears in the quote below)_
- **Life insurance cash value cap ($):** $100,000 _(verified: appears in the quote below)_
- **Annuity present value cap ($):** $250,000 _(verified: appears in the quote below)_
- **Health insurance benefit cap ($):** $500,000 _(verified: appears in the quote below)_
- **Other accident & sickness cover cap ($):** $100,000 _(verified: appears in the quote below)_
- **Disability income / long-term care benefit cap ($):** $300,000 _(verified: appears in the quote below)_
- **Aggregate cap per life ($):** $350,000 _(verified: appears in the quote below)_
- **Per-owner cap across multiple policies ($):** $5 million _(verified: appears in the quote below)_
- **Statute section:** 38.2-1700 _(verified: appears in the quote below)_

## What the source says

> D. The benefits that the Association may become obligated to cover shall in no event exceed the lesser of: 1. The contractual obligations for which the insurer is liable or would have been liable if it were not an impaired or insolvent insurer; or 2. With respect to: a. One life, regardless of the number of policies or contracts: (1) $300,000 in life insurance death benefits, but not more than $100,000 in net cash surrender and net cash withdrawal values for life insurance; (2) For accident and sickness insurance benefits, (i) $100,000 for coverage not defined as disability income insurance, health benefit plans, or long-term care insurance including any net cash surrender and net cash withdrawal values; (ii) $300,000 for disability income insurance and $300,000 for long-term care insurance; and (iii) $500,000 for health benefit plans; and (3) $250,000 in the present value of annuity benefits, including net cash surrender and net cash withdrawal values; b. Each individual participating in a benefit plan established under Section 401, 403(b) or 457 of the U.S. Internal Revenue Code who (i) selected an investment option that includes investment in unallocated annuity contracts and (ii) is covered by such an unallocated annuity contract, including the beneficiaries of each such individual if deceased, in the aggregate, $250,000 in present value of annuity benefits, including net cash surrender and net cash withdrawal values; c. Each payee of a structured settlement annuity (or beneficiary or beneficiaries of the payee if deceased), $250,000 in present value annuity benefits, in the aggregate, including net cash surrender and net cash withdrawal values, if any; and d. One plan sponsor whose plans own directly or in trust one or more unallocated annuity contracts part or all of any of which is not included in subdivision 2 b, $5 million in benefits, irrespective of the number of contracts with respect to the plan sponsor. However, in the case where one or more unallocated annuity contracts are covered contracts under this chapter and are owned by a trust or other entity for the benefit or two or more plan sponsors, coverage shall be afforded by the Association if the largest interest in the trust or entity owning the contract or contracts is held by a plan sponsor whose principal place of business is in the Commonwealth and in no event shall the Association be obligated to cover more than $5 million in benefits with respect to all such unallocated contracts. e. In no event shall the Association be obligated to cover (i) more than an aggregate of $350,000 in benefits with respect to any one life under subdivisions D 2 a, b, and c except with respect to benefits for health benefit plans under subdivision D 2 a (2), in which case the aggregate liability of the Association shall not exceed $500,000 with respect to any one individual, or (ii) with respect to one owner of multiple nongroup policies of life insurance, whether the policy or contract owner is an individual, firm, corporation, or other person, and whether the persons insured are officers, managers, employees, or other persons, more than $5 million in benefits, regardless of the number of policies and contracts held by the owner.

## Source

- https://law.lis.virginia.gov/vacodefull/title38.2/chapter17/

Last verified: 2026-08-19. Review by: 2027-08-19.
Part of [State life and health insurance guaranty association benefit limits — how much is protected if your insurer fails](https://referencesource.org/insurance-guaranty-association-limits-by-state/).