Title 38 — Veterans' BenefitsRelease 119-73not60
§1922B Service-disabled Veterans Insurance
Title 38 › Part II— GENERAL BENEFITS › Chapter 19— INSURANCE › Subchapter I— NATIONAL SERVICE LIFE INSURANCE › § 1922B
Summary
Starting January 1, 2023, the Department of Veterans Affairs must offer whole-life insurance for veterans who have a service-connected disability. A veteran must apply before turning 81, unless they filed a disability claim before 81, were later found to have a service-connected disability after turning 81, and apply within two years of that finding. Veterans can choose $10,000, $20,000, $30,000, $40,000, or a larger amount if the Secretary sets a higher maximum and shows it won’t cause a loss. Premiums go into a special revolving fund. Payments come from that fund. The Treasury may buy and sell special government bonds for the fund that earn market-based interest. Administrative costs are paid from premiums and later reimbursed. A veteran can enroll anytime, but the policy only starts after two years of enrollment and full premium payments during those two years. If the veteran dies in that two-year waiting period, the beneficiary gets the premiums paid plus interest. For the first year of the program the interest rate is 1% (but it can be changed that year, not below 0%). For later years the interest equals the fund’s return from the prior calendar year, not below 0%, and the VA will publish the average rate each year. The VA sets age-based premium rates per $10,000 like private “guaranteed acceptance” plans and may change them after the first year. Veterans may name a beneficiary. If none is named, payment goes in this order: spouse; children and descendants; parents; the executor or administrator; then other next of kin under the veteran’s home state law. A named beneficiary has one year after the death to file a claim; others have the time periods shown in the law to file. The VA must pay a valid claim quickly: within 90 days for a named beneficiary after a complete claim, or generally within one year after the applicable filing period ends. Payments are made in a lump sum, cannot be paid if they would escheat to a State, and bar any other recovery.
Full Legal Text
Title 38, §1922B
Veterans' Benefits — Source: USLM XML via OLRC
(a)(1)Beginning January 1, 2023, the Secretary shall carry out a service-disabled veterans insurance program under which a veteran is granted insurance by the United States against the death of such individual occurring while such insurance is in force.
(2)The Secretary may only issue whole-life policies under the insurance program under paragraph (1).
(3)The Secretary may not grant insurance to a veteran under paragraph (1) unless—
(A)the veteran submits the application for such insurance before the veteran attains 81 years of age; or
(B)with respect to a veteran who has attained 81 years of age—
(i)the veteran filed a claim for compensation under chapter 11 of this title before attaining such age;
(ii)based on such claim, and after the veteran attained such age, the Secretary first determines that the veteran has a service-connected disability; and
(iii)the veteran submits the application for such insurance during the two-year period following the date of such determination.
(4)(A)A veteran enrolled in the insurance program under paragraph (1) may elect to be insured in any of the following amounts:
(i)$10,000.
(ii)$20,000.
(iii)$30,000.
(iv)$40,000.
(v)In accordance with subparagraph (B), a maximum amount greater than $40,000.
(B)The Secretary may establish a maximum amount to be insured under paragraph (1) that is greater than $40,000 if the Secretary—
(i)determines that such maximum amount and the premiums for such amount—
(I)are administratively and actuarially sound for the insurance program under paragraph (1); and
(II)will not result in such program operating at a loss; and
(ii)publishes in the Federal Register, and submits to the Committee on Veterans’ Affairs of the Senate and the Committee on Veterans’ Affairs of the House of Representatives, such maximum amount and determination.
(5)(A)(i)Insurance granted under this section shall be on a nonparticipating basis and all premiums and other collections therefor shall be credited directly to a revolving fund in the Treasury of the United States.
(ii)Any payments on such insurance shall be made directly from such fund.
(B)(i)The Secretary of the Treasury may invest in and sell and retire special interest-bearing obligations of the United States for the account of the revolving fund under subparagraph (A).
(ii)Such obligations issued for that purpose shall—
(I)have maturities fixed with due regard for the needs of the fund; and
(II)bear interest at a rate equal to the average market yield (computed by the Secretary of the Treasury on the basis of market quotations as of the end of the calendar month preceding the date of issue) on all marketable interest-bearing obligations of the United States then forming a part of the public debt which are not due or callable until after the expiration of four years from the end of such calendar month; except that where such average market yield is not a multiple of one-eighth of one per centum, the rate of interest of such obligation shall be the multiple of one-eighth of one per centum nearest such market yield.
(6)(A)Administrative support financed by the appropriations for “General Operating Expenses, Department of Veterans Affairs” and “Information Technology Systems, Department of Veterans Affairs” for the insurance program under paragraph (1) shall be paid from premiums credited to the fund under paragraph (5).
(B)Such payment for administrative support shall be reimbursed for that fiscal year from funds that are available on such insurance after claims have been paid.
(b)A veteran is eligible to enroll in the insurance program under subsection (a)(1) if the veteran has a service-connected disability, without regard to—
(1)whether such disability is compensable under chapter 11 of this title; or
(2)whether the veteran meets standards of good health required for other life insurance policies.
(c)(1)An eligible veteran may enroll in the insurance program under subsection (a)(1) at any time.
(2)The life insurance policy of a veteran who enrolls in the insurance program under subsection (a)(1) does not go into force unless—
(A)a period of two years elapses following the date of such enrollment; and
(B)the veteran pays the premiums required during such two-year period.
(3)(A)If a veteran dies during the two-year period described in paragraph (2), the Secretary shall pay to the beneficiary of the veteran the amount of premiums paid by the veteran under this section, plus interest.
(B)The Secretary—
(i)for the initial year of the insurance program under subsection (a)(1)—
(I)shall set such interest at a rate of one percent; and
(II)may adjust such rate during such year based on program experience, except that the interest rate may not be less than zero percent;
(ii)for the second and each subsequent year of the program, shall calculate such interest at an annual rate equal to the rate of return on the revolving fund under subsection (a)(5) for the calendar year preceding the year of the veteran’s death, except that the interest rate may not be less than zero percent; and
(iii)on an annual basis, shall publish on the internet website of the Department the average interest rate calculated under clause (ii) for the preceding calendar year.
(d)(1)The Secretary shall establish a schedule of basic premium rates by age per $10,000 of insurance under subsection (a)(1) consistent with basic premium rates generally charged for guaranteed acceptance life insurance policies by private life insurance companies.
(2)The Secretary may adjust such schedule after the first policy year in a manner consistent with the general practice of guaranteed acceptance life insurance policies issued by private life insurance companies.
(3)section 1912 of this title shall not apply to life insurance policies under subsection (a)(1), and the Secretary may not otherwise waive premiums for such insurance policies.
(e)(1)A veteran who enrolls in the insurance program under subsection (a)(1) may designate a beneficiary of the life insurance policy.
(2)If a veteran enrolled in the insurance program under subsection (a)(1) 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 veteran.
(B)The children of the veteran and descendants of deceased children by representation.
(C)The parents of the veteran or the survivors of the parents.
(D)The duly appointed executor or administrator of the estate of the veteran.
(E)Other next of kin of the veteran entitled under the laws of domicile of the veteran at the time of the death of the veteran.
(f)(1)If the deceased veteran designated a beneficiary under subsection (e)(1)—
(A)the designated beneficiary is the only person who may file a claim for payment under subsection (g) during the one-year period beginning on the date of the death of the veteran; and
(B)if the designated beneficiary does not file a claim for the payment during the period described in paragraph (1), or if payment to the designated beneficiary within that period is prohibited by Federal statute or regulation, a beneficiary described in subsection (e)(2) may file a claim for such payment during the one-year period following the period described in subparagraph (A) as if the designated beneficiary had predeceased the veteran.
(2)If the deceased veteran did not designate a beneficiary under subsection (e)(1), or if the designated beneficiary predeceased the veteran, a beneficiary described in subsection (e)(2) may file a claim for payment under subsection (g) during the two-year period beginning on the date of the death of the veteran.
(3)If, on the date that is two years after the date of the death of the veteran, no claim for payment has been filed by any beneficiary pursuant to paragraph (1) or (2), and the Secretary has not received notice that any such claim will be so filed during the subsequent one-year period, the Secretary may make the payment to a claimant whom the Secretary determines to be equitably entitled to such payment.
(g)(1)In a case described in subsection (f)—
(A)in paragraph (1)(A), the Secretary shall pay the designated beneficiary not later than 90 days after the designated beneficiary files a complete and valid claim for payment;
(B)in paragraph (1)(B) or (2), the Secretary shall make any payment not later than one year after the end of the period described in the applicable such paragraph, if the Secretary receives a complete and valid claim for payment in accordance with the applicable such paragraph; or
(C)in paragraph (3), the Secretary shall make any payment not later than one year after the end of the period described in such paragraph, if the Secretary receives a complete and valid claim for payment.
(2)In a case where the Secretary has not made an insurance payment under this section during the applicable period specified in paragraph (1) by reason of a beneficiary not yet having filed a claim, or the Secretary not yet making a determination under subsection (f)(3), the Secretary may make the payment after such applicable period.
(3)Notwithstanding section 1917 of this title, the Secretary shall make an insurance payment under this section in a lump sum.
(4)The Secretary may not make an insurance payment under this section if such payment will escheat to a State.
(5)Any payment under this subsection shall be a bar to recovery by any other person.
Reference
Citations & Metadata
Citation
38 U.S.C. § 1922B
Title 38 — Veterans' Benefits
Last Updated
Apr 5, 2026
Release point: 119-73not60