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Updated Jun 30, 2021

In This Chapter

  
This chapter contains the following topics, “Death Compensation.”
 

 

1.  Overview of Death Compensation

Introduction

  
This topic contains general information on Death Compensation, including

Change Date

   January 28, 2021

XII.ii.1.1.a.  Definition:  Death Compensation

  
Death Compensation is a monthly payment made to a surviving spouse, child, or parent because
  • of a service-connected (SC) death occurring before January 1, 1957, or
  • an in-service waiver of National Service Life Insurance (NSLI) or United States Government Life Insurance (USGLI) under 38 U.S.C. 1924 was in effect at the time of death, and death occurred
    • on or after May 1, 1957, but
    • prior to January 1, 1972.
Important:  The parent(s) of a deceased Veteran must also meet the requirements set forth in 38 CFR 3.250 in order to establish entitlement to Death Compensation.
 
References:  For more information on

XII.ii.1.1.b.  Action to Take if Death Compensation Is the Greater Benefit for a Surviving Parent

  
  • the circumstances described in M21-1, Part XII, Subpart ii, 1.1.a exist, and
  • the rate of Dependency and Indemnity Compensation (DIC) payable to the parent is less than the rate of Death Compensation payable.
Use the information the parent provides on the form to determine whether, based on the criteria in 38 CFR 3.250, the parent was dependent on the Veteran prior to the Veteran’s death.

XII.ii.1.1.c.  Election of DIC in Lieu of Death Compensation

  
Claimants and beneficiaries with entitlement to Death Compensation have the right to elect DIC under certain circumstances.
 
Follow the steps in the table below upon receipt of an application from a claimant/beneficiary that is in receipt of Death Compensation.
 
Step
Action
1
Is the claimant/beneficiary entitled to DIC?
  • If yes, proceed to the next step.
  • If no,
    • pay/continue paying Death Compensation, and
    • proceed no further.
2
Is the amount of DIC that is payable greater than the amount of Death Compensation that is payable?
  • If yes, go to the next step.
  • If no, take the actions described in the table below.
Step
Action
1
Pay/Continue paying Death Compensation.
2
Notify the claimant/beneficiary
  • that the Department of Veterans Affairs (VA) is paying Death Compensation because it is the greater benefit, and
  • about the right to elect DIC.
3
Proceed no further.
 
3
Assume the claimant/beneficiary is electing DIC in lieu of Death Compensation and award DIC from the date of receipt of election.  In the decision notice, inform the claimant/beneficiary
  • that VA awarded DIC as the greater benefit, and
  • about the right to elect Death Compensation until the election becomes final.
4
Did the claimant/beneficiary ask VA to cancel the election of DIC before his/her financial institution received the first payment of DIC?
  • If yes, award Death Compensation from the same date VA awarded DIC (minus the amount of DIC VA previously paid).
  • If no, the election of DIC becomes final.
 
References:  For more information on

XII.ii.1.1.d.  Considering In-Service Waiver of Insurance Premium Cases

  
Situation:  Cases may be encountered in which the beneficiaries are receiving Death Compensation because the Veteran died on or after May 1, 1957, and prior to January 1, 1972, with insurance in force by waiver of premiums under 38 U.S.C. 1924.
 
Pursuant to Public Law (PL) 92-197, effective January 1, 1972, these beneficiaries have an unrestricted right to elect DIC.
 
Action:
  • Provide notice to all affected Death Compensation beneficiaries of their right to elect DIC.
  • If cases are encountered during routine handling, in which the beneficiaries have not elected DIC, furnish a reminder of the right of election and take related actions as provided in this section.
Notes: