CONTENTS

CHAPTER PAGE

1\. GENERAL 1\
2. VA FORM 29-368d, REPORT OF STATUS FOR SETTLEMENT OF DEATH CLAIMS 2\
3. RELEASE OF LETTERS AND RELATED FORMS TO THE BENEFICIARY 3\
4. PROCESSING NOTICES OF DEATH OTHER THAN ROUTINE 4\
5. PREPARATION OF AWARD DOCUDIENTS FOR DEATH INSURANCE AWARDS 5\
6. PROCESSING UNCOLLECTIBLE AND RETURNED CHECKS 6\
7. TAXATION IN RELATION TO LIFE INSURANCE BENEFITS 7\
8. DATE OF BIRTH DISCREPANCIES 8\
9. ACTIVE XC-ACCOUNTS, ADDITIONAL INSURANCE PENDING 9\
10. PROCESSING DEATH CASES ON INACTIVE ACCOUNTS 10\
11. INQUIRIES ON DEATH CASES 11\
12. PENDING AWARDS 12\
13. GENERAL INFORMATION - ADJUDICATION PROCEDURES 13\
14. INITIATION OF CLAIM FOR INSURANCE - OTHER THAN ROUTINE CASES 14\
- 15. PROOF AND DATE OF DEATH 15\
16. BENEFICIARIES 16\
17. OPTIONS 17\
18. ASSIGNMENTS 18\
19. POWERS OF ATTORNEY 19

20\. DETERMINATIONS RELATING TO HOMICIDE AND SURVIVORSHIP IN CLAIMS\
FOR INSURANCE 20

21\. CONTESTED CLAIMS 21

22\. CLAIM FOR GRATUITOUS INSURANCE (AN) AS AMENDED BY THE NSLI ACT\
OF 1940 22

23\. GRATUITOUS INSURANCE (ARH) GRANTED UNDER TITLE 37, UNITED STATES

CODE, SECTION 722(b) 23

24\. INCOMPETENCY DETERMINATIONS FOR INSURANCE BENEFICIARIES 24

25\. INVITATION OF CLAIMS FOR DISABILITY INSURANCE BENEFITS

AFTER DEATH OF INSURED 25

CONTENTS M29-1 Part VI

CHAPTER 25. INVITATION TO CLAIMS

FOR DISABILITY INSURANCE BENEFITS AFTER

DEATH OF INSURED

PARAGRAPH PAGE

25.01 GENERAL 25-1\
25.02 REQUIREMENTS FOR DISABILITY INSURANCE\
BENEFITS (SUMMARY) 25-1\
25.03 SITUATIONS IN WHICH A CLAIM SHOULD\
NOT BE INVITED REGARDLESS OF AGE 25-2\
25.04 INSUREDS AGE ON THE DATE OF DEATH 25-2\
25.05 LAPSED INSURANCE 25-2\
25.06 COMMON CHRONIC CONDITIONS 25-3

25-3a

**M29-l, Part IV**

**Change No. 1-88**

CHAPTER 25. INVITATION TO CLAIMS

**FOR DISABILITY INSURANCE BENEFITS**

**AFTER DEATH OF INSURED**

25.01 GENERAL

a\. When it is determined that an insured who is deceased was eligible
for Disability Insurance Benefits prior to his or her death, the
beneficiary(ies) of the policy are eligible to receive the benefits.

b\. Upon adjudication of the claim for the proceeds of the insurance,
the Claims Examiner or Claims Adjustment Technician will determine
whether or not a claim for Disability Insurance Benefits should be
invited.

c\. In making this determination, it will be necessary to examine the
death certificate and any medical evidence in the insurance folder. All
medical conditions shown on the death certificate will be considered
along with the interval between onset of the condition and death.
Additionally, the attending physician\'s statement of treatment on the
death certificate will be reviewed.

d\. When it is determined that a claim for Disability Insurance Benefits
should be invited, Form Letter 29-721 or dictated letter and VA Form
29-357 will be sent to the beneficiary(ies).

25.02 REQUIREMENTS FOR DISABILITY INSURANCE BENEFITS (SUMMARY)

When determining whether or not a claim for disability should be
invited, the following eligibility requirements should be considered.

a\. The insured must be totally disabled (38 USC 712(a); 38 CFR 8.40;
M29-1, Part I ch. 31 par. 31.16)

b\. Total disability for insurance purposes is defined as any impairment
of mind or body which continuously prevents the insured from engaging in
any substantially gainful occupation. (38 CFR 8.43(a); M29-1, Part I,
ch. 31, par. 31.01)

c\. Total disability must begin [before]{.underline} the insured\'s 65th
birthday. (38 USC 712(a); 38 CFR 8.40; M29-l, Part I, ch. 31, par.
3l.l6c)

d\. Total disability must continue for at least six consecutive months.
(38 CFR 8.40; M29-l, Part I, ch. 31, par. 31.16)

e\. Total disability must begin while the insurance is in force and on a
premium paying basis. (38 USC 712(a); 38 CFR 8.40; M29-l, Part I, ch.
31, par. 3l.l6b)

f\. Premiums may not be waived for more than one year prior to the date
of death unless circumstances beyond the insured\'s control prevented
him from filing a claim. (38 USC 712(b); 38 CFR 8.41(a); M29-l, Part I,
ch. 31, par. 3l.l0d)

25-1

**M29-l, Part IV**

**Change No. 1-88**

25.03 SITUATIONS IN RICH A CLAIM SHOULD NOT BE INVITED REGARDLESS OF AGE

a\. The premiums were already being waived at the time of the veteran\'s
death.

b\. The insurance was paid up more than one year prior to the date of
the a veteran\'s death. (Exception: If a TDIP Rider was in force at the
time of death)

c\. The medical evidence indicates the death was sudden and there is no
evidence of any other secondary chronic condition. Examples of sudden
causes of death would include, death resulting from accident, myocardial
infarction (heart attack) and cerebral vascular accident (stroke).

d\. The medical evidence indicates the duration of the illness extended
to a period of less than six months prior to death.

e\. When insurance is lapsed and the medical evidence indicates the
onset of the condition which caused the veteran\'s death began [after
the date of lapse]{.underline}.

f\. The insurance lapsed more than one year prior to the date of the
veteran\'s death and the full proceeds were paid under the extended
insurance provision.

**25.04 INSURED\'S AGE ON THE DATE OF DEATH**

Disability Insurance Benefits are granted only if the onset of the
disability occured prior to the insured\'s 65th birthday. When
determining whether or not a claim for disability should be invited the
following factors will be considered.

a\. If, upon death, the insured was [age 65 or under]{.underline}, and
none of the situations described in paragraph 25.03 existed, then a
claim should be invited even if there is no indication of the date of
onset of the chronic condition.

b\. If, upon death, the insured was [over]{.underline} age 65, and none
of the situations described in paragraph 25.03 existed, then a claim
should be invited if and only if the medical evidence indicates that the
onset of the chronic condition occurred [prior to the insured\'s 65th
birthday]{.underline}. If the insured was under age 70, and the evidence
indicates that the condition has been chronic for \"years\", that will
be sufficient indication to invite a claim.

25.05 LAPSED INSURANCE

a\. If the insurance lapsed within one year of the date of death and
none of the situations described in paragraph 25.03 existed, then a
claim should be invited.

b\. If the insurance lapsed over one year prior to the date of death and
none of the situations described in paragraph 25.03 existed, the case
should be referred to the Live Claims section for possible invitation.

**25-2**

**M29-l, Part IV**

**Change No. 1-88**

25.06 COMMON CHRONIC CONDITIONS

(This list is not all-inclusive)

[HEART:]{.underline} Arteriosclerotic heart disease\
Hypertensive heart disease\
Bacterial endocarditis\
Congestive heart failure\
Heart surgery

[ARTERIES and VEINS.]{.underline} Arteriosclerosis, general\
[VASCULAR:]{.underline} Hypertensive vascular disease\
Aneurysm, aorta or branches

[CANCERS:]{.underline} All organs and tissues\
(CARCINOMA, MALIGNANCY) Hodgkins\
Leukemia\
Lymphoma\
Melonoma

[MENTAL:]{.underline} Organic brain disorders\
Any mental disorder associated\
with immediate cause

[RESPIRATORY SYSTEM:]{.underline} Chronic lung disease\
Emphysema

Chronic bronchitis

Bronchiectasis

Silicosis

Tuberculosis

[DIGESTIVE SYSTEM:]{.underline} Liver, cirrosis\
Obstruction, intestinal\
Pancreatitis\
Hemorrhage

[GENITOURINARY:]{.underline} Chronic kidney disease\
Nephritis\
Uremia\
Nephrosclerosis

[ENDOCRINE:]{.underline} Diabetes mellitus\
Pituitary gland disorders\
Adrenal (Addison\'s)\
Thyroid

Encephalitis

Poliomyletis

Cerebral

Hemorrage, thrombosis, embolism

Multiple sclerosis

Amyotrophic lateral sclerosis

Muscular dystrophy, progressive

Parkinson\'s disease

Epilepsy

Cerebral arteriosclerosis

Syringomyelia

Myasthenia Gravis

**25-3**

**M29-l, Part IV**

**Change No. 1-88**

[OTHER:]{.underline} Drugs\
Alcoholism\
Malnutrition, cachexia\
Anemias\
Arthritis

[WHERE ASSOCIATED WITH IMMEDIATE CAUSE]{.underline}:

Systemic diseases

Leprosy, malaria

Syphilis

Lupus erythematosus

**25-3a**