[Code of Federal Regulations]
[Title 38, Volume 1]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 38CFR6.9]

[Page 492-493]
 
            TITLE 38--PENSIONS, BONUSES, AND VETERANS' RELIEF
 
                CHAPTER I--DEPARTMENT OF VETERANS AFFAIRS
 
PART 6_UNITED STATES GOVERNMENT LIFE INSURANCE--Table of Contents
 
Sec. 6.9  Election of optional settlement by beneficiary.

    If the insured has selected an optional settlement then at the death 
of the insured the designated beneficiary may elect to receive the 
proceeds of insurance in installments spread over a greater period of 
time than that selected by the insured and in accordance with the 
following provisions.


(Authority: 38 U.S.C. 1952)

    (a) If the insured has selected Option 1, the beneficiary may elect 
to receive payment under Option 2, 3, or 4.
    (b) If the insured has selected Option 2 with monthly installments 
not in excess of 120, the beneficiary may elect to receive payment in a 
greater number of installments under Option 2, or may elect to receive 
payment under Option 3 or 4.
    (c) If the insured has selected Option 2 with monthly installments 
in excess of 120, the beneficiary may elect to receive payment in a 
greater number of installments under Option 2, or may elect to receive 
payment under Option 3.
    (d) If the insured has selected Option 3, and named no contingent 
beneficiary, the beneficiary may elect to receive payment under Option 
4.
    (e) If the insured has selected Option 4, the beneficiary may elect 
to receive payment under Option 3.

If the insured has selected settlement under Option 1, a beneficiary who 
has elected to receive payment under Option 2, 3, or 4 may elect to 
receive the commuted value of any remaining unpaid installments certain 
(240 less the number paid in case of Option 3, or 120 less the number 
paid in the case of Option 4): Provided, That where the commutation is 
elected under Option 3 or 4 after payment under such option has 
commenced, and the beneficiary survives the period certain, such 
beneficiary shall be entitled to the resumption of monthly installments 
payable for life in accordance with the monthly income option previously 
selected by

[[Page 493]]

such beneficiary. The entitlement to the resumption of monthly 
installments will be effective as of the monthly payment date next 
following the expiration of the period certain. Settlement under any one 
of the options or payment to the beneficiary of said commuted value 
under Option 2 or payment of said commuted value under Options 3 and 4 
to the beneficiary who does not survive the period certain shall be in 
full and complete discharge of all liability under the contract. Any 
other change in the mode of settlement may, within the limitations set 
forth in paragraphs (a) through (e) of this section, be made by a 
beneficiary after payment has commenced, provided the change is made 
within 1 year of the original election and in those instances where 
Option 3 is changed to Option 1 or 2; or Option 4 is changed to Option 
1, 2, or 3, satisfactory proof is submitted to establish that the 
beneficiary's state of health is the same as it was at time of original 
election. The effective date of the original election for this purpose 
will be the date it was delivered to the Department of Veterans Affairs. 
If such election was forwarded by mail, properly addressed to the 
Department of Veterans Affairs, the postmark date will be taken as the 
date of delivery. Such change will be made on the premise that the new 
election was made initially, and the account will be adjusted 
accordingly. A condition precedent to any such change will be the 
repayment of any amount received by the beneficiary in excess of that 
which would have been due had the new election been made initially.

[32 FR 14274, Oct. 14, 1967, as amended at 48 FR 8069, Feb. 25, 1983. 
Redesignated and amended at 61 FR 29025, June 7, 1996]