[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: 38CFR9.5]

[Page 523]
 
            TITLE 38--PENSIONS, BONUSES, AND VETERANS' RELIEF
 
                CHAPTER I--DEPARTMENT OF VETERANS AFFAIRS
 
PART 9_SERVICEMEMBERS' GROUP LIFE INSURANCE AND VETERANS' GROUP
 
Sec.  9.5  Payment of proceeds.

    Proceeds shall be paid in accordance with provisions set forth in 38 
U.S.C. 1970 and the following provisions:
    (a) If proceeds are to be paid in installments, the first 
installment will be payable as of the date of death. The amount of each 
installment will be computed so as to include interest on the unpaid 
balance at the then effective rate.
    (b) If, following the death of an insured member who has designated 
both principal and contingent beneficiaries and elected to have payment 
made in 36 equal monthly installments, the principal beneficiary dies 
before all 36 installments have been paid, the remaining installments 
will be paid as they fall due to the contingent beneficiary. At the 
death of such a contingent beneficiary, and in other instances of a 
beneficiary's death, where there is no contingent beneficiary, the value 
of any unpaid installments, discounted to the date of his or her death 
at the same rate used for inclusion of interest in the computation of 
installments will be paid, without further accrual of interest, in one 
sum to the estate of the beneficiary or continent beneficiary last 
receiving payment.
    (c) In instances where payment in installments is made at the 
election of the beneficiary, upon his or her request, the value of such 
installments as remain unpaid will be discounted to the date of payment 
at the same rate used for inclusion of interest in the computation of 
installments and paid to him or her in one sum.
    (d) If a member whose coverage is extended due to total disability 
converts the group insurance to an individual policy which is effective 
before he or she ceases to be totally disabled or before the end of 1 
year following termination of duty, whichever is earlier, and dies while 
group insurance would be in effect, except for such conversion, the 
group insurance will be payable, provided the individual policy is 
surrendered for a return of premiums and without further claim. When 
there is no such surrender, any amount of group insurance in excess of 
the amount of the individual policy will be payable.

(Authority: 38 U.S.C. 501)

[40 FR 4135, Jan. 28, 1975, as amended at 50 FR 12252, Mar. 28, 1985. 
Redesignated and amended at 61 FR 20135, 20136, May 6, 1996]