What this means
m21-1:XII.ii.1 explains death compensation. In plain terms, the official guidance says death Compensation is a monthly payment made to a surviving spouse, child, or parent because It also addresses upon receipt of VA Form 21P-535, Application for Dependency and Indemnity Compensation by Parent(s) (Including Accrued Benefits and Death Compensation when Applicable), from a surviving parent, ask the parent to complete and return VA Form 21P-509, Statement of Dependency of Parent(s), if
How this may help with a claim
Use m21-1:XII.ii.1 when organizing evidence or checking VA's handling of death compensation. Compare your application, supporting records, and notice with this source-specific point: Death Compensation is a monthly payment made to a surviving spouse, child, or parent because Upon receipt of VA Form 21P-535, Application for Dependency and Indemnity Compensation by Parent(s) (Including Accrued Benefits and Death Compensation when Applicable), from a surviving parent, ask the parent to complete and return VA Form 21P-509, Statement of Dependency of Parent(s), if Save proof of submission and identify the exact condition, exception, or missing development step before requesting correction or choosing a review option.
What to review in your file
- Check the file against this official condition: action to take if Death Compensation is a greater benefit for a surviving parent
- Confirm that the record or notice addresses this source point: of a service-connected (SC) death occurring before January 1, 1957, or
- Document how this stated step or exception applies: on or after May 1, 1957, but
Important limits
m21-1:XII.ii.1 explains VA guidance for death compensation; it does not guarantee an award or replace the statutes, regulations, binding decisions, and review instructions that control an individual claim. Conditions and exceptions still matter, including this source point: Death Compensation is a monthly payment made to a surviving spouse, child, or parent because Follow the steps in the table below upon receipt of an application from a veteran or claimant/beneficiary that is in receipt of Death Compensation.
Search terms when useful
Phrases that may help when searching your claim file or this library.
- Death Compensation
- m21-1:XII.ii.1
- definition Death Compensation
- action take Death Compensation
- election lieu Death Compensation
- considering in-service waiver insurance
- XII.ii.1.1.a. Definition Death Compensation
- Death Compensation monthly payment
Original VA guidance
The official VA text of this section
Overview
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
- definition of Death Compensation
- action to take if Death Compensation is a greater benefit for a surviving parent
- election of DIC in lieu of Death Compensation, and
- considering in-service waiver of insurance premium cases.
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
- Death Compensation, see 38 CFR 3.4(c), and
- NSLI or USGLI, see 38 U.S.C. 1924.
XII.ii.1.1.b. Action to Take if Death Compensation Is the Greater Benefit for a Surviving Parent
Upon receipt of VA Form 21P-535, Application for Dependency and Indemnity Compensation by Parent(s) (Including Accrued Benefits and Death Compensation when Applicable), from a surviving parent, ask the parent to complete and return VA Form 21P-509, Statement of Dependency of Parent(s), if
- 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.
Scroll sideways to see the full table.
| 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. |
| 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
- finality of election to receive DIC, see 38 CFR 3.702 (d)(1), and
- effective date of DIC upon election, see 38 CFR 3.400 (c)(4).
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:
- PL 92-197 repealed 38 U.S.C. 417(a) that had limited entitlement to Death Compensation under 38 CFR 3.5(b)(3) and 38 CFR 3.702(a).
- If election of DIC is received, the effective date provisions of 38 CFR 3.114(a)(3) apply.