A bill to amend title 38 of the United States Code in order to provide mortgage protection life insurance to certain veterans unable to acquire commercial life insurance because of service-connected disabilities.

Repeals the existing program of mortgage protection life insurance for veterans with a permanent and total service-connected disability who are entitled to assistance in acquiring a suitable housing unit with special fixtures or movable facilities made necessary by the nature of the veteran's disability.

Establishes a new program of mortgage protection life insurance, which includes the following provisions: (1) sets the maximum amount of insurance under a policy provided under this Act at no more than $40,000; and (2) expands eligibility to include any veteran entitled to compensation for (a) permanent and total service-connected disability, or (b) the loss or loss of use of one lower extremity together with residuals of organic disease or injury which so affect the functions of balance or propulsion as to preclude locomotion without resort to a wheelchair, and any veteran who establishes to the satisfaction of the Administrator of Veterans' Affairs that he is unable to obtain commercial life insurance at a standard rate because of his service-connected disability.