by Chris Pearce

Created on: April 17, 2009   Last Updated: April 28, 2009

Various benefits are available from the US Department of Veterans Affairs to veterans and their spouses and children. These include compensation and pensions, survivor benefits, education, vocational rehabilitation, home loans, and life insurance.

1. Compensation and pensions.

Disability compensation is paid to veterans who suffer from injuries or diseases incurred during their time on active duty, or were made worse because of military service. Additional payments may be made to a veteran who has a spouse or children, or who has a very severe disability, or who has a disabled spouse. The benefits are not taxed.

A Veterans Affairs Pension may be paid to veterans aged 65 years and over. A person under 65 may qualify if he or she is totally and permanently disabled. An income test applies. Disabled veterans may also receive an Aid and Attendance benefit if the veteran needs the assistance of another person with their day to day activities such as washing and eating, or is bedridden, in a nursing home, or blind. A Housebound benefit is also available. Both are paid in addition to the pension.

A Death Pension benefit is payable to surviving spouses and dependent children. There is an income test to qualify.

Burial allowances include a gravesite in a national cemetery, a headstone or a marker, a flag, a Presidential Memorial Certificate, and ongoing maintenance of the grave.

2. Survivor benefits.

Veterans Affairs offer a number of benefits to the spouse and children of a veteran who died in service or from a service-related disability.

Dependency and Indemnity Compensation (DIC) is a monthly payment of $1,154 (in 2009) available to a spouse. He or she will receive an extra $286 a month for each child. This is a tax-free benefit. A spouse who remarries at age 57 years or over can continue to receive the benefit. A $250 transitional benefit is also paid each month for two years if the spouse has children under 18 years.

A lump sum DIC for surviving children if there is no surviving spouse is currently $488 for one child. This amount reduces with the greater number of children in the family, right up to nine children who each receive $217.66.

A Parents' DIC may be paid as a monthly benefit to the parents of a veteran who dies in active service. The benefit is means tested.

The Survivors' and Dependents' Educational Assistance program pays a monthly education or training allowance. The spouse or children can receive this monthly payment for up to 45 months.

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