Side-by-side comparison

Comparing Veteran Survivor Benefits & Life Insurance

VA survivor benefits and private life insurance serve different purposes. Use this guide to understand how each program works, then decide if a private insurance review is right for your family.

This page provides general educational information only. It does not determine eligibility and is not assistance with preparing or filing a VA claim.

VA Benefit
Tax-Free · VA.gov

DIC (Dependency & Indemnity Compensation)

Who It's For
Surviving spouses, children, and parents of veterans who died from service-connected conditions
What It Provides
Monthly tax-free cash payment
Payment / Amount
~$1,612/mo (2024 base rate)
Key Eligibility
Death must be service-connected; spouse married ≥1 yr
VA Benefit
Tax-Free · VA.gov

Survivors Pension

Who It's For
Low-income surviving spouses and unmarried children of wartime veterans
What It Provides
Needs-based monthly cash payment
Payment / Amount
Varies by income & dependents
Key Eligibility
Wartime service; income below threshold
VA Benefit
Tax-Free · VA.gov

Burial & Memorial Benefits

Who It's For
Most veterans discharged other-than-dishonorable
What It Provides
Burial allowance, national cemetery plot, headstone, flag
Payment / Amount
Up to $2,000 (service-connected) / $780 (non-service-connected)
Key Eligibility
Other-than-dishonorable discharge
VA Benefit
Tax-Free · VA.gov

CHAMPVA

Who It's For
Spouses and children of veterans who died or are permanently disabled from service-connected conditions
What It Provides
Health care coverage
Payment / Amount
Cost-share per visit; no premium for most
Key Eligibility
Service-connected death or 100% permanent disability
VA Benefit
Tax-Free · VA.gov

Education (DEA / Fry Scholarship)

Who It's For
Surviving spouses and children of veterans who died on active duty or from service-connected conditions
What It Provides
Education and training assistance
Payment / Amount
Up to ~$1,500/mo for 36 months
Key Eligibility
Service-connected death or died on active duty
VA Benefit
Tax-Free · VA.gov

VA Home Loan (Surviving Spouse)

Who It's For
Certain surviving spouses of veterans
What It Provides
Home loan guaranty (no down payment required)
Payment / Amount
Loan guaranty, no monthly benefit
Key Eligibility
Veteran died in service or from service-connected cause
Private Insurance
Tax-Free · Private insurer

Final Expense Life Insurance

Who It's For
Adults aged 50–85 looking to cover funeral and final expenses
What It Provides
Whole life insurance with guaranteed level premium
Payment / Amount
$5,000–$50,000 death benefit
Key Eligibility
Simplified underwriting, often no medical exam
Private Insurance
Tax-Free · Private insurer

Indexed Universal Life (IUL)

Who It's For
Adults seeking lifelong protection plus cash-value growth
What It Provides
Permanent life insurance with cash value linked to a market index
Payment / Amount
Flexible, death benefit and cash value grow over time
Key Eligibility
Medical underwriting required

Interactive tool

Coverage Needs Calculator

Answer three quick questions to see an estimate of your potential life-insurance coverage gap.

How many people depend on your income?

Private Insurance

Final Expense Life Insurance

A small whole life insurance policy designed specifically to cover funeral costs, medical bills, and other end-of-life expenses. Premiums are level and never increase, and coverage cannot be cancelled as long as premiums are paid.

  • Guaranteed acceptance for ages 50–85 (often no medical exam)
  • Death benefit from $5,000 to $50,000
  • Level premiums that never increase
  • Builds cash value over time

VA burial benefits help with cemetery and headstone costs, but may not cover the full funeral. Final expense insurance can bridge that gap.

Private Insurance

Indexed Universal Life (IUL)

Permanent life insurance that combines a death benefit with cash-value growth tied to a market index (like the S&P 500). You get lifelong protection plus a tax-advantaged savings component that can supplement retirement income.

  • Death benefit passes tax-free to beneficiaries
  • Cash value grows based on market index performance
  • Downside protection, floor on losses
  • Flexible premiums and death benefit amounts

DIC and Survivors Pension provide monthly income, but they end. IUL builds a legacy you control and can access during your lifetime.

VA Benefits + Private Insurance = Stronger Protection

Government survivor benefits like DIC and burial allowances are valuable but limited in scope. Final expense insurance and IUL policies can fill coverage gaps, build long-term wealth, and give your family additional financial security, no matter what VA benefits you qualify for.

Veteran Family Advocates is an independent, for-profit educational and insurance referral service. We are not a nonprofit organization and are not affiliated with, endorsed by, or acting on behalf of the U.S. Department of Veterans Affairs, Department of Defense, or any government agency. We do not prepare, file, or determine eligibility for VA benefit claims. Official VA benefit information and assistance from accredited representatives may be available at no cost.