Title 38, Veterans' BenefitsRelease 119-102
§1917 Insurance Maturing on or After August 1, 1946
Title 38 › PART II — GENERAL BENEFITS › CHAPTER 19 — INSURANCE › SUBCHAPTER I — NATIONAL SERVICE LIFE INSURANCE › § 1917
Summary
People who sign up for insurance that matures on or after August 1, 1946, may name a beneficiary and can change that beneficiary at any time without the beneficiary’s permission. If no one is named or the named person dies first, the Secretary will pick who gets the money in this order: the surviving spouse, the children (and descendants of any dead children), the parents, the executor or administrator of the estate, and then other next of kin under the law where the insured lived. The insurance can be paid in a few ways: one lump sum; equal monthly payments from 36 to 240 months (in multiples of 12); 120 months certain then continuing for the first beneficiary’s life; or a refund life income that pays enough certain monthly amounts so their sum equals the policy face value minus debt (but not if it would pay for less than 120 months). If the insured does not pick, the default is 36 monthly payments, but the first beneficiary can choose a longer option or, for policies maturing after September 30, 1981, a lump sum. Monthly payments must be at least $10; if a monthly share would be under $10, the payments will be spread over more months (in multiples of 12) to reach $10, and if the total is too small to pay twelve $10 months it will be paid in one sum. Options that extend payments (the 120-month and refund life plans) cannot be used if the beneficiary is a firm, corporation, estate, or trustee. If a beneficiary who chose payments dies before getting all money, the remaining value goes to that beneficiary’s estate; in certain cases the remaining value goes to the insured’s estate. If the first beneficiary does not claim payment within one year, payment can go to another person named by the insured in order; if no claim is made within two years and no notice is filed, the Secretary may pay someone the Secretary thinks is fair. All refund-life calculations use The Annuity Table for 1949, and once payment is made under the rule about unclaimed funds, others cannot recover that money.
Full Legal Text
Title 38, §1917
Veterans' Benefits, Source: USLM XML via OLRC
(a)(1)A person who enrolls in insurance maturing on or after August 1, 1946, may designate a beneficiary of the insurance policy. The insured shall, subject to regulations, at all times have the right to change the beneficiary or beneficiaries of such insurance without the consent of such beneficiary or beneficiaries.
(2)If a person enrolled in insurance maturing on or after August 1, 1946, does not designate a beneficiary under paragraph (1) before the veteran dies, or if a designated beneficiary predeceases the veteran, the Secretary shall determine the beneficiary in the following order:
(A)The surviving spouse of the insured person.
(B)The children of the insured person and descendants of deceased children by representation.
(C)The parents of the insured person or the survivors of the parents.
(D)The duly appointed executor or administrator of the estate of the insured person.
(E)Other next of kin of the insured person entitled under the laws of domicile of the insured person at the time of the death of the insured person.
(b)Insurance maturing on or after August 1, 1946, shall be payable in accordance with the following optional modes of settlement:
(1)In one sum.
(2)In equal monthly installments of from thirty-six to two hundred and forty in number, in multiples of twelve.
(3)In equal monthly installments for one hundred and twenty months certain with such payments continuing during the remaining lifetime of the first beneficiary.
(4)As a refund life income in monthly installments payable for such period certain as may be required in order that the sum of the installments certain, including a last installment of such reduced amount as may be necessary, shall equal the face value of the contract, less any indebtedness, with such payments continuing throughout the lifetime of the first beneficiary; however, such optional settlement shall not be available in any case in which such settlement would result in payments of installments over a shorter period than one hundred and twenty months.
(c)Except as provided in the second and third sentences of this subsection, unless the insured elects some other mode of settlement, such insurance shall be payable to the designated beneficiary or beneficiaries in thirty-six equal monthly installments. The first beneficiary may elect to receive payment under any option which provides for payment over a longer period of time than the option elected by the insured, or if no option has been elected by the insured, in excess of thirty-six months. In the case of insurance maturing after September 30, 1981, and for which no option has been elected by the insured, the first beneficiary may elect to receive payment in one sum. If the option selected requires payment to any one beneficiary of monthly installments of less than $10, the amount payable to such beneficiary shall be paid in such maximum number of monthly installments as are a multiple of twelve as will provide a monthly installment of not less than $10. If the present value of the amount payable at the time any person initially becomes entitled to payment thereof is not sufficient to pay at least twelve monthly installments of not less than $10 each, such amount shall be payable in one sum. Options (3) and (4) shall not be available if any firm, corporation, legal entity (including the estate of the insured), or trustee is beneficiary.
(d)If the beneficiary of such insurance is entitled to a lump-sum settlement but elects some other mode of settlement and dies before receiving all the benefits due and payable under such mode of settlement, the present value of the remaining unpaid amount shall be payable to the estate of the beneficiary. If no beneficiary is designated by the insured, or if the designated beneficiary does not survive the insured, or if a designated beneficiary not entitled to a lump-sum settlement survives the insured, and dies before receiving all the benefits due and payable, then the commuted value of the remaining unpaid insurance (whether accrued or not) shall be paid in one sum to the estate of the insured. In no event shall there be any payment to the estate of the insured or of the beneficiary of any sums unless it is shown that any sums paid will not escheat.
(e)Under such regulations as the Secretary may promulgate, the cash surrender value of any policy of insurance or the proceeds of an endowment contract which matures by reason of completion of the endowment period may be paid to the insured under option (2) or (4) of this section. All settlements under option (4), however, shall be calculated on the basis of The Annuity Table for 1949. If the option selected requires payment of monthly installments of less than $10, the amount payable shall be paid in such maximum number of monthly installments as are a multiple of twelve as will provide a monthly installment of not less than $10.
(f)(1)Following the death of the insured and in a case not covered by subsection (d)—
(A)if the first beneficiary otherwise entitled to payment of the insurance does not make a claim for such payment within one year after the death of the insured, payment may be made to another beneficiary designated by the insured, in the order of precedence as designated by the insured, as if the first beneficiary had predeceased the insured; and
(B)if, within two years after the death of the insured, no claim has been filed by a person designated by the insured as a beneficiary and the Secretary has not received any notice in writing that any such claim will be made, payment may (notwithstanding any other provision of law) be made to such person as may in the judgment of the Secretary be equitably entitled thereto.
(2)Payment of insurance under paragraph (1) shall be a bar to recovery by any other person.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Amendments
2022—Subsec. (a). Pub. L. 117–313, § 3(a), added subsec. (a) and struck out former subsec. (a) which read as follows: “The insured shall have the right to designate the beneficiary or beneficiaries of insurance maturing on or after August 1, 1946, and shall, subject to
Regulations
, at all times have the right to change the beneficiary or beneficiaries of such insurance without the consent of such beneficiary or beneficiaries.” Subsec. (f)(1)(A). Pub. L. 117–313, § 2(a)(1), substituted “one year” for “two years”. Subsec. (f)(1)(B). Pub. L. 117–313, § 2(a)(2), substituted “two years” for “four years”. 2003—Subsec. (f). Pub. L. 108–183 added subsec. (f). 1991—Pub. L. 102–83 renumbered section 717 of this title as this section and substituted “Secretary” for “Administrator” in subsec. (e). 1981—Subsec. (c). Pub. L. 97–66 substituted “Except as provided in the second and third sentences of this subsection, unless” for “Unless” and inserted provision that, in the case of insurance maturing after September 30, 1981, and for which no option has been elected by the insured, the first beneficiary may elect to receive payment in one sum. 1970—Subsec. (c). Pub. L. 91–291 struck out provision that options (3) and (4) were not available in cases where the endowment contract matured by reason of the completion of the endowment period. Subsec. (e). Pub. L. 91–291 added subsec. (e).
Statutory Notes and Related Subsidiaries
Effective Date
of 2022 Amendment Pub. L. 117–313, § 2(c), Dec. 27, 2022, 136 Stat. 4399, provided that: “The
Amendments
made by this section [amending this section and section 1952 of this title] shall apply with respect to the death of an insured person occurring on or after the date that is two years before the date of the enactment of this Act [Dec. 27, 2022].” Pub. L. 117–313, § 3(c), Dec. 27, 2022, 136 Stat. 4400, provided that: “The
Amendments
made by this section [amending this section and section 1949 of this title] shall apply with respect to the death of an insured person occurring on or after the date that is two years before the date of the enactment of this Act [Dec. 27, 2022].”
Effective Date
of 2003 Amendment Pub. L. 108–183, title I, § 103(c), Dec. 16, 2003, 117 Stat. 2655, provided that: “The
Amendments
made by subsections (a) and (b) [amending this section and section 1952 of this title] shall take effect on October 1, 2004.”
Effective Date
of 1981 AmendmentAmendment by Pub. L. 97–66 effective Oct. 17, 1981, see section 701(b)(1) of Pub. L. 97–66, set out as a note under section 1114 of this title.
Effective Date
of 1970 AmendmentAmendment by Pub. L. 91–291 effective first day of first calendar month which begins more than six calendar months after June 25, 1970, see section 14(a) of Pub. L. 91–291, set out as a note under section 1317 of this title. Transition Provision Pub. L. 108–183, title I, § 103(d), Dec. 16, 2003, 117 Stat. 2655, provided that: “In the case of a person insured under subchapter I or II of chapter 19 of title 38, United States Code, who dies before the
Effective Date
of the
Amendments
made by subsections (a) and (b), as specified by subsection (c) [set out as an
Effective Date
of 2003 Amendment note above], the two-year and four-year periods specified in subsection (f)(1) of section 1917 of title 38, United States Code, as added by subsection (a), and subsection (c)(1) of section 1952 of such title, as added by subsection (b), as applicable, shall for purposes of the applicable subsection be treated as being the two-year and four-year periods, respectively, beginning on the
Effective Date
of such
Amendments
, as so specified.”
Reference
Citations & Metadata
Citation
38 U.S.C. § 1917
Title 38, Veterans' Benefits
Last Updated
Aug 21, 2026
Release point: 119-102