--- title: "Part XII, Subpart ii, Chapter 1" document: "M-21-1" section: "Part XII, Subpart ii, Chapter 1" canonical: "https://veteranai.co/va-regulations/m21-1/xii.ii.1" source: "https://www.knowva.ebenefits.va.gov/system/templates/selfservice/va_ssnew/help/customer/locale/en-US/portal/554400000001018/content/554400000175222/M21-1-Part-XII-Subpart-ii-Chapter-1-Death-Compensation" updated: "2026-09-07T14:38:06.622825Z" --- 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. | **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 * 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.