Federal Benefits: Department of Veterans Affairs

The Department of Veterans Affairs provides significant benefits for  the survivors of veterans who die on active duty or from a  service-connected injury or illness. Benefits are available for both  the surviving spouse and children and in some cases, surviving  dependent parents may also be eligible. VA Benefits are tax-exempt to  the beneficiaries and receive annual cost-of-living (COLA) increases.  The benefits below are in year 2009 dollars.

Dependency and Indemnity Compensation (DIC)

Since 1 December 1969 the Department of Veterans Affairs pays  Dependency and Indemnity Compensation (DIC). Until 1 January 1993, DIC  for the surviving spouse was based on the veteran's pay grade. In the  case of a member's death on or after 1 January 1993, the eligible  surviving spouse will receive a monthly DIC payment of $1,154,  regardless of the deceased member's pay grade. Spouse DIC is payable as  long as the surviving spouse remains unmarried. Spouse DIC stops upon  remarriage unless the remarriage occurs after age 57 in which case DIC  continues to be paid. In the case of a survivor receiving DIC as a  result of the member's death prior to 1 January 1993, the spouse income  will continue at the former DIC rates (with Cost of Living Adjustment)  or $1,154 per month, whichever is higher. If the surviving spouse is  receiving DIC, then unmarried surviving children each receive DIC  payments of $286 per month. The money must pass through a guardian.  Children remain eligible for DIC payments until they reach age 18. If  the surviving spouse is not receiving DIC payments, then the monthly  child payments are based on the number of eligible children as follows:  1 child - $488; 2 children - $701 shared equally; 3 children = $915  shared equally; and over 3 children an additional $174 per child.  Disabled children over age 18 would receive $488 per month.

Supplementary DIC

Unmarried children between the ages of 18 and 23 are eligible to receive Supplementary DIC of $243 per month. This benefit must be used for post-secondary education.

Dependents Education Assistance

Dependents Education Assistance (DEA) is available for surviving  spouses and children. The benefit is $915 per month for 45 months as a  full-time student. Children are eligible to receive this benefit from  age 18 to age 26 and special extensions may be granted to age 31.  Children may also be married and receive this benefit. The surviving  spouse has 10 years following the veteran's death to use this benefit.