38 U.S.C. § 1949 — Beneficiaries

Page 521 TITLE 38—VETERANS’ BENEFITS § 1949 less any dividends, loan, or other payment made to the insured under such contract or policy. (Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1159, § 747; Pub. L. 99–576, title VII, § 701(30), Oct. 28, 1986, 100 Stat. 3293; renumbered § 1947 and amended Pub. L. 102–83, §§ 4(a)(2)(A)(iii)(VI), (3), (4), (b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 403–406.) Editorial Notes AMENDMENTS 1991—Pub. L. 102–83, § 5(a), renumbered section 747 of this title as this section. Pub. L. 102–83, § 5(c)(1), substituted ‘‘1954’’ for ‘‘754’’ and ‘‘1984’’ for ‘‘784’’. Pub. L. 102–83, § 4(b)(1), (2)(E), substituted ‘‘Sec- retary’’ for ‘‘Administrator’’ before ‘‘shall’’ in last sen- tence. Pub. L. 102–83, § 4(a)(3), (4), substituted ‘‘Department’’ for ‘‘Veterans’ Administration’’. Pub. L. 102–83, § 4(a)(2)(A)(iii)(VI), substituted ‘‘Sec- retary’’ for ‘‘Veterans’ Administration’’ before ‘‘to issue’’ in last sentence. 1986—Pub. L. 99–576 substituted ‘‘the insured’s’’ for ‘‘his’’. § 1948. Total disability provision The Secretary shall include in United States Government life insurance policies provision whereby an insured, who is totally disabled as a result of disease or injury for a period of four consecutive months or more before attaining the age of sixty-five years and before default in payment of any premium, shall be paid dis- ability benefits at the rate of $5.75 monthly for each $1,000 of insurance in force when total dis- ability benefits become payable. The amount of such monthly payment under the provisions of this section shall not be reduced because of pay- ment of permanent and total disability benefits under the insurance policy. Such payments shall be effective as of the first day of the fifth con- secutive month, and shall be made monthly dur- ing the continuance of such total disability. Such payments shall be concurrent with or inde- pendent of permanent and total disability bene- fits under the insurance policy. In addition to the monthly disability benefits the payment of premiums on the life insurance and for the total disability benefits authorized by this section shall be waived during the continuance of such total disability. Regulations shall provide for re- examinations of beneficiaries under this section; and, in the event that it is found that an insured is no longer totally disabled, the waiver of pre- miums and payment of benefits shall cease and the insurance policy, including the total dis- ability provision, may be continued by payment of premiums as provided in said policy and the total disability provision. Neither the dividends nor the amount payable in any settlement under any United States Government life insurance policy shall be decreased because of disability benefits granted under the provisions of this sec- tion. The payment of total disability benefits shall not prejudice the right of any insured, who is totally and permanently disabled, to perma- nent and total disability benefits under the in- sured’s insurance policy. The provision author- ized by this section shall not be included in any United States Government life insurance policy heretofore or hereafter issued, except upon ap- plication, payment of premium by the insured, and proof of good health satisfactory to the Sec- retary. The benefit granted under this section shall be on the basis of multiples of $500, and not less than $1,000 or more than the amount of in- surance in force at time of application. The Sec- retary shall determine the amount of the monthly premium to cover the benefits of this section, and in order to continue such benefits in force the monthly premiums shall be payable until the insured attains the age of sixty-five years or until the prior maturity of the policy. In all other respects such monthly premium shall be payable under the same terms and con- ditions as the regular monthly premium on the United States Government life insurance policy. (Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1159, § 748; Pub. L. 97–295, § 4(27), Oct. 12, 1982, 96 Stat. 1307; Pub. L. 99–576, title VII, § 701(30), Oct. 28, 1986, 100 Stat. 3293; renumbered § 1948 and amended Pub. L. 102–83, §§ 4(b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 Stat. 404–406.) Editorial Notes AMENDMENTS 1991—Pub. L. 102–83 renumbered section 748 of this title as this section and substituted ‘‘Secretary’’ for ‘‘Administrator’’ wherever appearing. 1986—Pub. L. 99–576 substituted ‘‘the insured’s’’ for ‘‘his’’. 1982—Pub. L. 97–295 substituted ‘‘premium’’ for ‘‘permium’’ after ‘‘payment of’’. § 1949. Beneficiaries (a) DESIGNATION.—A person who enrolls in United States Government life insurance may designate a beneficiary of the insurance policy. Subject to regulations, the insured person shall at all times have the right to change the bene- ficiary or beneficiaries of a United States Gov- ernment life insurance policy without the con- sent of such beneficiary or beneficiaries. (b) DETERMINATION IN CASES OF NON-DESIGNA- TION.—If a person enrolled in United States Gov- ernment life insurance does not designate a ben- eficiary under subsection (a) before the insured person dies, or if a designated beneficiary predeceases the insured person, the Secretary shall determine the beneficiary in the following order: (1) The surviving spouse of the insured per- son. (2) The children of the insured person and descendants of deceased children by represen- tation. (3) The parents of the insured person or the survivors of the parents. (4) The duly appointed executor or adminis- trator of the estate of the insured person. (5) Other next of kin of the insured person entitled under the laws of domicile of the in- sured person at the time of the death of the in- sured person. (Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1160, § 749; renumbered § 1949, Pub. L. 102–83, § 5(a), Aug. 6, 1991, 105 Stat. 406; amended Pub. L. 117–313, § 3(b)(1), Dec. 27, 2022, 136 Stat. 4400.) Page 522 TITLE 38—VETERANS’ BENEFITS § 1950 Editorial Notes AMENDMENTS 2022—Pub. L. 117–313 amended section generally. Prior to amendment, text read as follows: ‘‘Subject to regula- tions, the insured shall at all times have the right to change the beneficiary or beneficiaries of a United States Government life insurance policy without the consent of such beneficiary or beneficiaries.’’ 1991—Pub. L. 102–83 renumbered section 749 of this title as this section. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2022 AMENDMENT Amendment by Pub. L. 117–313 applicable with re- spect to the death of an insured person occurring on or after the date that is two years before Dec. 27, 2022, see section 3(c) of Pub. L. 117–313, set out as a note under section 1917 of this title. § 1950. Payment to estates If no beneficiary of insurance is designated by the insured, either while alive or by last will, or if the designated beneficiary does not survive the insured, then there shall be paid to the es- tate of the insured the present value of the re- maining unpaid monthly installments. If the designated beneficiary survives the insured and dies before receiving all of the installments of insurance payable and applicable, then there shall be paid to the estate of such beneficiary the present value of the remaining unpaid monthly installments. No payments shall be made to any estate which under the laws of the residence of the insured or the beneficiary, as the case may be, would escheat, but same shall escheat to the United States and be credited to the United States Government Life Insurance Fund. (Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1160, § 750; Pub. L. 99–576, title VII, § 701(31), Oct. 28, 1986, 100 Stat. 3293; renumbered § 1950, Pub. L. 102–83, § 5(a), Aug. 6, 1991, 105 Stat. 406.) Editorial Notes AMENDMENTS 1991—Pub. L. 102–83 renumbered section 750 of this title as this section. 1986—Pub. L. 99–576 substituted ‘‘while alive or by last will’’ for ‘‘in his lifetime or by his last will and tes- tament’’. § 1951. Payment of insurance United States Government life insurance, ex- cept as provided in this subchapter, shall be pay- able in two hundred and forty equal monthly in- stallments. When the amount of an individual monthly payment is less than $5, such amount may in the discretion of the Secretary be al- lowed to accumulate without interest and be disbursed annually. (Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1161, § 751; renumbered § 1951 and amended Pub. L. 102–83, §§ 4(b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 Stat. 404–406.) Editorial Notes AMENDMENTS 1991—Pub. L. 102–83 renumbered section 751 of this title as this section and substituted ‘‘Secretary’’ for ‘‘Administrator’’. § 1952. Optional settlement (a) The Secretary may provide in insurance contracts for optional settlements, to be se- lected by the insured, whereby such insurance may be made payable either in one sum or in in- stallments for thirty-six months or more. A pro- vision may also be included in such contracts authorizing the beneficiary to elect to receive payment of the insurance in installments for thirty-six months or more, but only if the in- sured has not exercised the right of election as provided in this subchapter. Even though the in- sured may have exercised the right of election the beneficiary may elect to receive such insur- ance in installments spread over a greater pe- riod of time than that selected by the insured. Notwithstanding any provision to the contrary in any insurance contract, the beneficiary may, in the case of insurance maturing after Sep- tember 30, 1981, and for which the insured has not exercised the right of election of the insured as provided in this subchapter, elect to receive payment of the insurance in one sum. (b) Under such regulations as the Secretary may promulgate, the cash surrender value of any policy of insurance or the proceeds of an en- dowment contract which matures by reason of completion of the endowment period may be paid to the insured (1) in equal monthly install- ments of from thirty-six to two hundred and forty in number, in multiples of twelve; or (2) as a refund life income in monthly installments payable for such periods certain as may be re- quired in order that the sum of the installments certain, including a last installment of such re- duced amount as may be necessary, shall equal the cash value of the contract, less any indebt- edness, with such payments continuing through- out the lifetime of the insured. However, all set- tlements under option (2) above shall be cal- culated 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 mul- tiple of twelve as will provide a monthly install- ment of not less than $10. (c)(1) Following the death of the insured and in a case not covered by section 1950 of this title— (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 des- ignated by the insured, as if the first bene- ficiary had predeceased the insured; and (B) if, within two years after the death of the insured, no claim has been filed by a per- son 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 pro- vision 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. (Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1161, § 752; Pub. L. 91–291, § 12, June 25, 1970, 84 Stat. 332;