Veterans Administration Insurance Amendments Act of 1987

Veterans Administration Insurance Amendments of 1987 - Amends Federal veterans' benefits provisions to authorize the Administrator of Veterans Affairs to periodically adjust the monthly installments payable to a beneficiary under the National Service Life Insurance, the Veterans Special Life Insurance, or the Veterans Reopened Insurance programs. Directs the Administrator to take specified action with regard to the trust funds set up to pay such insurance proceeds.

Authorizes the Administrator to make similar adjustments to the monthly installments payable to a beneficiary of United States Government Life Insurance who is receiving such proceeds under a life annuity settlement option, requiring the Administrator to take specified action with regard to the trust fund set up to pay such insurance proceeds.

Exempts any premiums paid under a veterans' life insurance policy from any State taxation.

Amends Federal provisions relating to veterans' mortgage life insurance to require the United States to automatically insure any eligible veteran receiving housing assistance against the death of the veteran, with certain exceptions. Revises provisions governing the initial amount of such insurance to be paid for each housing unit, along with other administrative provisions regarding the payment of such insurance and the premiums charged for such insurance. Directs the Administrator to issue to each insured veteran a certificate setting forth the benefits to which he or she is entitled. Terminates reinsurance and accounting requirements for such insurance policies.

Provides that, effective October 1, 1987, the Administrator shall discontinue the policy of insurance currently in effect under specified Federal law.