Benefit Types

VA Benefit Types: Compensation, Pension, and Death Benefits

Compensation Benefits

Veteran Disability Compensation (Service Connected)

Disability compensation is a benefit paid to a veteran because of injuries or diseases that happened while on active duty, or were made worse by active military service. It is also paid to certain veterans disabled from VA health care. The benefits are tax-free.

If you are at-least 10 percent disabled as a result of your military service, the VA can pay you monthly compensation. The amount of VA benefits paid is dependent on the percentage of disability. The percentages run from 10% to 100% and in some extreme cases can be more than 100% called special monthly compensation. The VA figures out the amount to be paid by taking the percentage of disability looking it up on the Compensation Rate Table. In other words, if the VA finds you 10% disabled, you would get less money than if they found you 80% disabled. Remember, the disability must be "service connected".

The amount of basic benefit paid ranges, depending on how disabled you are.

Note: You may be paid additional amounts, in certain instances, if:

you have very severe disabilities or loss of limb(s)
you have a spouse, child(ren), or dependent parent(s)
you have a seriously disabled spouse

Eligibility

To get VA compensation benefits for service connected disability, there is a three part test. First, you must have a disability at the present time that has been diagnosed medically. Second, there must have been a disease, injury or event in the service. Third, there must be a nexus. This means that the current medical condition is related to the in service medical condition. This may include disabilities that are secondary conditions, due to a disability that is service connected.

Pension Benefits

Veteran Pension Benefits (Non-Service Connected)

Pension is a benefit paid to wartime veterans who have limited or no income, and who are age 65 or older, or, if under 65, who are permanently and totally disabled. The disability does not have to be "service connected". This is needs based and the veteran must have limited income. These pension benefits are available to those who served during a period of war and are totally disabled. These payments are much less than compensation and are offset by other income. VA provides a Disability Benefits Pension Rate Table that is based on countable family income which is set yearly by Congress.

Eligibility

Generally, you may be eligible if:

you were discharged from service under conditions other than dishonorable, and
you served at least 90 days of active military service 1 day of which was during a war time period. If you entered active duty after September 7, 1980, generally you must have served at least 24 months or the full period for which called or ordered to active duty (There are exceptions to this rule), and
your countable family income is below a yearly limit set by law (The yearly limit on income is set by Congress), and
you are age 65 or older, or you are permanently and totally disabled, not due to your own willful misconduct.

If you are found eligible for pension you may also be entitled to Aid and Attendance or Housebound Benefits. These benefits are for veterans who are more seriously disabled and are in addition to monthly pension. These benefits may not be paid without eligibility to pension.

A veteran cannot receive both Aid and Attendance and Housebound benefits at the same time.

Aid and Attendance (A&A)

A&A is a benefit paid in addition to monthly pension and may not be paid without eligibility to pension. A veteran may be eligible for A&A when:

The veteran requires the aid of another person in order to perform personal functions required in everyday living, such as bathing, feeding, dressing, attending to the wants of nature, adjusting prosthetic devices, or protecting himself/herself from the hazards of his/her daily environment, or,
The veteran is bedridden, in that his/her disability or disabilities requires that he/she remain in bed apart from any prescribed course of convalescence or treatment, or
The veteran is a patient in a nursing home due to mental or physical incapacity, or,
The veteran is blind, or so nearly blind as to have corrected visual acuity of 5/200 or less, in both eyes, or concentric contraction of the visual field to 5 degrees or less.

Housebound

Housebound is paid in addition to monthly pension. Like A&A, Housebound benefits may not be paid without eligibility to pension. A veteran may be eligible for Housebound benefits when:

The veteran has a single permanent disability evaluated as 100-percent disabling and, due to such disability, he/she is permanently and substantially confined to his/her immediate premises, or,
The veteran has a single permanent disability evaluated as 100-percent disabling and, another disability, or disabilities, evaluated as 60 percent or more disabling.

Death Pension Benefits

Death Pension is a needs based benefit paid to an unremarried surviving spouse (widow), or an unmarried child of a deceased wartime veteran.

Eligibility

Generally, you may be eligible if:

the deceased veteran was discharged from service under other than dishonorable conditions, and
the deceased veteran served at least 90 days of active military service 1 day of which was during a war time period. If he or she entered active duty after September 7, 1980, generally he or she must have served at least 24 months or the full period for which called or ordered to active duty. (There are exceptions to this rule.) and
you are the surviving spouse or unmarried child of the deceased veteran, and
your countable income is below a yearly limit set by law (The yearly limit on income is set by Congress). See

Age Requirements, or Restrictions

An unremarried spouse can be any age.

A child must be under 18, or in school and under 23, or incapable of self support before age of 18

Countable Income for Pension Eligibility

Countable income includes income received from most sources by the surviving spouse and any eligible children. It includes earnings, disability and retirement payments, interest and dividends, and net income from farming or business. Certain expenses like medical expenses may be excluded from your annual income to lower the total countable income. There is a presumption that all of a child's income is available to or for the surviving spouse. VA may grant an exception in hardship cases.

Exclusions to Income or Deductions Reducing Countable Income

The following are examples of the types of exclusions or deductibles to countable income:

Final expenses of the veteran's last illness and burial paid by the surviving spouse or eligible children.
Public assistance such as Supplemental Security Income is not considered income.
Many other specific sources of income are not considered income, however all income should be reported. VA will exclude any income that the law allows.
A portion of un-reimbursed medical expenses paid by the claimant after VA receives your pension claim may be deducted.
Certain other expenses, such as a surviving spouse's education expenses, and in some cases, a portion of the educational expenses of a child over 18 are deductible.

Net Worth

Net worth means the net value of the assets of the surviving spouse and his or her children. It includes such assets as bank accounts, stocks, bonds, mutual funds and any property other than the surviving spouse's residence and a reasonable lot area. There is no set limit on how much net worth a surviving spouse and his or her children can have, but net worth cannot be excessive. The decision as to whether a claimant's net worth is excessive depends on the facts of each individual case. All net worth should be reported and VA will determine if a claimant's assets are sufficiently large that the claimant could live off these assets for a reasonable period of time. VA's needs-based programs are not intended to protect substantial assets or build up an estate for the benefit of heirs.

If you are found eligible for death pension you may also be entitled to Aid and Attendance or Housebound Benefits. These benefits may not be paid without eligibility to death pension.
A veteran’s survivor cannot receive both Aid and Attendance and Housebound benefits at the same time.

Aid and Attendance is a benefit paid in addition to monthly pension when:

The claimant requires the aid of another person in order to perform personal functions required in everyday living, such as bathing, feeding, dressing, attending to the wants of nature, adjusting prosthetic devices, or protecting himself/herself from the hazards of his/her daily environment, or
The claimant is bedridden, in that his/her disability or disabilities requires that he/she remain in bed apart from any prescribed course of convalescence or treatment, or
The claimant is a patient in a nursing home due to mental or physical incapacity, or
The claimant is blind or so nearly blind as to have corrected visual acuity of 5/200 or less, in both eyes, or concentric contraction of the visual field to 5 degrees or less.

Housebound is paid to a claimant when:

The claimant is substantially confined to his/her immediate premises because of permanent disability.

Payment Amount for Death Pensions

VA pays you the difference between your countable income and an annual rate of payment established by Congress.VA provides of annual incomes that would qualify you for pension. See Death Pension Rate Table. This difference is generally paid in 12 equal monthly payments rounded down to the nearest dollar.