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Title 38 — Veterans' BenefitsRelease 119-73

§1980 Option to receive accelerated death benefit

Title 38 › Part PART II— - GENERAL BENEFITS › Chapter CHAPTER 19— - INSURANCE › Subchapter SUBCHAPTER III— - SERVICEMEMBERS’ GROUP LIFE INSURANCE › § 1980

Last updated Apr 6, 2026|Official source

Summary

If a doctor says a person will probably live less than a time set by the Secretary (no more than 12 months), that person may choose to get part of their Servicemembers’ or Veterans’ Group Life Insurance paid now as a one-time lump sum. The Secretary sets how much can be paid but it cannot be more than 50% of the policy’s face value on the date the payment is approved. A person can pick a smaller amount and the Secretary will set the allowed payment steps. The rest of the insurance still pays later. Any premiums or other deductions are lowered in the same percentage as the reduced face value, starting for amounts due on or after the payment date. The choice is final and can be made only once. If SGLI becomes VGLI afterward, the VGLI available is reduced by the amount paid. The lump-sum is not counted as income or resources for federal or federally-assisted benefits.

Full Legal Text

Title 38, §1980

Veterans' Benefits — Source: USLM XML via OLRC

(a)For the purpose of this section, a person shall be considered to be terminally ill if the person has a medical prognosis such that the life expectancy of the person is less than a period prescribed by the Secretary. The maximum length of such period may not exceed 12 months.
(b)(1)A terminally ill person insured under Servicemembers’ Group Life Insurance or Veterans’ Group Life Insurance may elect to receive in a lump-sum payment a portion of the face value of the insurance as an accelerated death benefit.
(2)The Secretary shall prescribe the maximum amount of the accelerated death benefit available under this section that the Secretary finds to be administratively practicable and actuarially sound, but in no event may the amount of the benefit exceed the amount equal to 50 percent of the face value of the person’s insurance in force on the date the election of the person to receive the benefit is approved.
(3)A person making an election under this section may elect to receive an amount that is less than the maximum amount prescribed under paragraph (2). The Secretary shall prescribe the increments in which a reduced amount under this paragraph may be elected.
(c)The portion of the face value of insurance which is not paid in a lump sum as an accelerated death benefit under this section shall remain payable in accordance with the provisions of this chapter.
(d)Deductions under section 1969 of this title and premiums under section 1977(c) of this title shall be reduced, in a manner consistent with the percentage reduction in the face value of the insurance as a result of payment of an accelerated death benefit under this section, effective with respect to any amounts which would otherwise become due on or after the date of payment under this section.
(e)The Secretary shall prescribe regulations to carry out this section. Such regulations shall include provisions regarding—
(1)the form and manner in which an application for an election under this section shall be made; and
(2)the procedures under which any such application shall be considered.
(f)(1)An election to receive a benefit under this section shall be irrevocable.
(2)A person may not make more than one election under this section, even if the election of the person is to receive less than the maximum amount of the benefit available to the person under this section.
(g)If a person insured under Servicemembers’ Group Life Insurance elects to receive a benefit under this section and the person’s Servicemembers’ Group Life Insurance is thereafter converted to Veterans’ Group Life Insurance as provided in section 1968(b) of this title, the amount of the benefit paid under this section shall reduce the amount of Veterans’ Group Life Insurance available to the person under section 1977(a) of this title.
(h)Notwithstanding any other provision of law, the amount of the accelerated death benefit received by a person under this section shall not be considered income or resources for purposes of determining eligibility for or the amount of benefits under any Federal or federally-assisted program or for any other purpose.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

2010—Subsec. (b)(1). Pub. L. 111–275 struck out “reduced by an amount necessary to assure that there is no increase in the actuarial value of the benefit paid, as determined by the Secretary” after “death benefit”.

Statutory Notes and Related Subsidiaries

Effective Date

of 2010 Amendment Pub. L. 111–275, title IV, § 405(b), Oct. 13, 2010, 124 Stat. 2880, provided that: “The amendment made by subsection (a) [amending this section] shall apply with respect to a payment of an accelerated death benefit under section 1980 of title 38, United States Code, made on or after the date of the enactment of this Act [Oct. 13, 2010].”

Effective Date

Section effective 90 days after Nov. 11, 1998, see section 302(c) of Pub. L. 105–368, set out as an

Effective Date

of 1998 Amendment note under section 1970 of this title.

Reference

Citations & Metadata

Citation

38 U.S.C. § 1980

Title 38 — Veterans' Benefits

Last Updated

Apr 6, 2026

Release point: 119-73