Title 38 — Veterans’ Benefits
Part II · Chapter 19 — Insurance
§ 1917. Insurance maturing on or after August 1, 1946
Statutory text
A person who enrolls in insurance maturing on or after , 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.
If a person enrolled in insurance maturing on or after , 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:
The surviving spouse of the insured person.
The children of the insured person and descendants of deceased children by representation.
The parents of the insured person or the survivors of the parents.
The duly appointed executor or administrator of the estate of the insured person.
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.
Insurance maturing on or after , shall be payable in accordance with the following optional modes of settlement:
In one sum.
In equal monthly installments of from thirty-six to two hundred and forty in number, in multiples of twelve.
In equal monthly installments for one hundred and twenty months certain with such payments continuing during the remaining lifetime of the first beneficiary.
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.
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 , 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.
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.
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.
Following the death of the insured and in a case not covered by subsection (d)—
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
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.
Payment of insurance under paragraph (1) shall be a bar to recovery by any other person.
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
Pub. L. 85–857 · 72 Stat. 1105
Enacted · 38 U.S.C. § 1917
Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1152, § 717
Source evidence
Code source credit
Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1152, § 717Pub. L. 91–291 § 10 · 84 Stat. 326
Struck · 38 U.S.C. § 1917(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
Source evidence
Code amendment note
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.Enacted provision · exact public law section
Sec. 10. Section 717 of title 38, United States Code, is amended (a) Matured insurance proceeds. Method of payment. 72 Stat. 1152. by substituting a period for the comma after the word “beneficiary” in the last sentence of subsection (c) and striking the remainder of the sentence, and (b) by adding at the end thereof the following new subsection: “(e) Under such regulations as the Administrator 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.”Pub. L. 91–291 § 10 · 84 Stat. 326
Added · 38 U.S.C. § 1917(e)
Pub. L. 91–291 added subsec. (e)
Source evidence
Code amendment note
Subsec. (e). Pub. L. 91–291 added subsec. (e).Enacted provision · exact public law section
Sec. 10. Section 717 of title 38, United States Code, is amended (a) Matured insurance proceeds. Method of payment. 72 Stat. 1152. by substituting a period for the comma after the word “beneficiary” in the last sentence of subsection (c) and striking the remainder of the sentence, and (b) by adding at the end thereof the following new subsection: “(e) Under such regulations as the Administrator 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.”Veterans’ Disability Compensation, Housing, and Memorial Benefits Amendments of 1981
Pub. L. 97–66 title IV § 403(a) · 95 Stat. 1026
Substituted · 38 U.S.C. § 1917(c)
Pub. L. 97–66 substituted “Except as provided in the second and third sentences of this subsection, unless” for “Unless”
Inserted · 38 U.S.C. § 1917(c)
Pub. L. 97–66 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
Source evidence
Code amendment note
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.Enacted provision · exact public law section
(a) Section 717(c) is amended— 38 USC 717. (1) by striking out “Unless” in the first sentence and inserting in lieu thereof “Except as provided in the second and third sentences of this subsection, unless”; and (2) by inserting the following new sentence after the second sentence: “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.”.Pub. L. 102–83 · 105 Stat. 378
Substituted · 38 U.S.C. § 1917
Pub. L. 102–83 renumbered section 717 of this title as this section and substituted “Secretary” for “Administrator” in subsec. (e)
Source evidence
Code amendment note
Pub. L. 102–83 renumbered section 717 of this title as this section and substituted “Secretary” for “Administrator” in subsec. (e).Veterans Benefits Act of 2003
Pub. L. 108–183 title I § 103(a) · 117 Stat. 2651
Added · 38 U.S.C. § 1917(f)
Pub. L. 108–183 added subsec. (f)
Source evidence
Code amendment note
Subsec. (f). Pub. L. 108–183 added subsec. (f).Enacted provision · exact public law section
(a) National Service Life Insurance.— Section 1917 is amended by adding at the end the following new subsection: “(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 two years 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) Deadline. if, within four 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.” .Faster Payments to Veterans’ Survivors Act of 2022
Pub. L. 117–313 § 3(a) · 136 Stat. 4399
Added · 38 U.S.C. § 1917(a)
Pub. L. 117–313, § 3(a), added subsec. (a)
Struck · 38 U.S.C. § 1917(a)
Pub. L. 117–313, § 3(a), 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.”
Source evidence
Code amendment note
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.”Enacted provision · exact public law section
(a) NSLI.— Section 1917 of title 38, United States Code, is amended by striking subsection (a) and inserting the following: “(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.” .Effective date note
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].”Faster Payments to Veterans’ Survivors Act of 2022
Pub. L. 117–313 § 2(a)(1) · 136 Stat. 4399
Substituted · 38 U.S.C. § 1917(f)(1)(A)
Pub. L. 117–313, § 2(a)(1), substituted “one year” for “two years”
Source evidence
Code amendment note
Subsec. (f)(1)(A). Pub. L. 117–313, § 2(a)(1), substituted “one year” for “two years”.Enacted provision · exact public law section
(1) in subparagraph (A), by striking “two years” and inserting “one year”; andEffective date note
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].”Faster Payments to Veterans’ Survivors Act of 2022
Pub. L. 117–313 § 2(a)(2) · 136 Stat. 4399
Substituted · 38 U.S.C. § 1917(f)(1)(B)
Pub. L. 117–313, § 2(a)(2), substituted “two years” for “four years”
Source evidence
Code amendment note
Subsec. (f)(1)(B). Pub. L. 117–313, § 2(a)(2), substituted “two years” for “four years”.Enacted provision · exact public law section
(2) in subparagraph (B), by striking “four” and inserting “two”.Effective date note
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].”
9 of 11 references resolved to an enrolled provision · 2 partial
Editorial Notes
Amendments1970–2022 · 5 rounds
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 , 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 , 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), , 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 [].”
Pub. L. 117–313, § 3(c), , 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 [].”
Effective Date of 2003 Amendment
Pub. L. 108–183, title I, § 103(c), , 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 .”
Effective Date of 1981 Amendment
Amendment by Pub. L. 97–66 effective , 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 Amendment
Amendment by Pub. L. 91–291 effective first day of first calendar month which begins more than six calendar months after , 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), , 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.”
Credits
1958–2022 · 6 acts
- 1958Pub. L. 85–857, , 72 Stat. 1152, § 717
- 1970Pub. L. 91–291, § 10, , 84 Stat. 331
- 1981Pub. L. 97–66, title IV, § 403(a), , 95 Stat. 1031
- 1991renumbered § 1917 and amended Pub. L. 102–83, §§ 4(b)(1), (2)(E), 5(a), , 105 Stat. 404–406
- 2003Pub. L. 108–183, title I, § 103(a), , 117 Stat. 2655
- 2022Pub. L. 117–313, §§ 2(a), 3(a), , 136 Stat. 4399.
Show as published
(Pub. L. 85–857, , 72 Stat. 1152, § 717; Pub. L. 91–291, § 10, , 84 Stat. 331; Pub. L. 97–66, title IV, § 403(a), , 95 Stat. 1031; renumbered § 1917 and amended Pub. L. 102–83, §§ 4(b)(1), (2)(E), 5(a), , 105 Stat. 404–406; Pub. L. 108–183, title I, § 103(a), , 117 Stat. 2655; Pub. L. 117–313, §§ 2(a), 3(a), , 136 Stat. 4399.)