The insurer has a reinsurance deal with Warren Buffett's Berkshire Hathaway.
Along with its core health cover, VHI already offers dental insurance and travel cover.
It also has three Swift Care emergency treatment facilities.
VHI posted a €49.8m net surplus last year on gross earned premiums of €1.46bn, but chief executive John O'Dwyer has been anxious to expand its offering and exploit its database of customers.
Competitors from Drumshambo, Co Leitrim -- Denise Mc Weeney, Mary Mc Keon, Claire Fee, Sinead Gillard, Sheila Moran and Catherine Mc Gowan -- before the start of the VHI women's mini marathon in Dublin.
Photograph: Cyril Byrne / The Irish Times Race stewards Michelle Waters, Felicity Keane and Margaret Lennox taking part in a warm-up dance before the start of the VHI women's mini marathon in Dublin.
Photograph: Aidan Crawley / The Irish Times Competitors running to support "No One Fights Alone", from Carlow-Kilkenny Homecare Team and Cois Nore, Kilkenny, before the start of the VHI women's mini marathon in Dublin.
Photograph: Cyril Byrne / The Irish Times The top three finishers of the mini marathon: from left, Natasha Adams, Letterkenny, Co Donegal (second place); Siobhan O'Doherty, Nenagh, Co Tipperary (first place), and Sarah Mulligan, Dundrum, Co Dublin (third).
It is the first expansion of the product offering from the VHI since it was authorised by the Central Bank last July.
The new product will be underwritten by Zurich Insurance and marketed by the VHI to its one million-plus customers over the phone, it is understood.
And the expansion move by VHI into life insurance coincides with rival Laya Healthcare planning to up the ante with its existing life insurance offering.
Consumer finance experts said the VHI move will further push down premiums for life cover.