Summary of VA Benefits 

for Disabled Veterans Tax-free 

benefits for 

Veterans with a 

service-connected 

disability

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As part of our mission to serve you, VA 

provides disability compensation to eligible 

Veterans who were disabled during or 

because of their military service. VA also 

offers compensation to eligible dependents 

of Veterans, including a surviving spouse, 

child(ren), and/or parent(s).

The following disability compensation benefits are 

available to Veterans:

» Disability Compensation – a monthly monetary 

benefit paid to Veterans who are disabled by 

an injury or disease that was incurred in or 

aggravated by active military service. VA and 

DoD offer pre-discharge programs that can 

help Veterans apply for disability compensation 

before discharge from military service

» Automobile Allowance – financial assistance 

provided to help eligible severely disabled 

Servicemembers and Veterans purchase or adapt 

an automobile to accommodate their disabilities

» Clothing Allowance – annual stipend(s) provided 

to disabled Veterans who have unique clothing 

needs as a result of a service-connected 

disability or injury

Access Your VA Benefits

Go to eBenefits at www.ebenefits.va.gov, 

your one-stop shop to learn about and apply 

for your benefits.

Additional VA benefits: 

» Specially Adapted Housing/ Special Home 

Adaptation Grants – provides monetary benefits 

to adapt or obtain suitable housing for eligible 

severely disabled Veterans

» Service-Disabled Veterans’ Insurance (S-DVI) –

provides life insurance coverage to Veterans who 

have been given a VA rating for a new serviceconnected disability in the last two years. 

Totally disabled Veterans are eligible for free 

insurance premiums and have the opportunity 

to purchase additional insurance 

» Veterans’ Mortgage Life Insurance (VMLI) – 

provides mortgage life insurance protection to 

disabled Veterans who have been approved for 

a VA Specially Adapted Housing (SAH) Grant 

» Vocational Rehabilitation and Employment 

(VR&E) – provides educational and training 

services to Veterans with service-connected 

illnesses and injuries to prepare for, obtain, 

and maintain suitable employment 

» Education Assistance – provides education 

benefits to Veterans to assist with obtaining a 

degree or with pursuing other eligible education 

and training

» Dependents’ Educational Assistance (DEA) –

provides assistance to survivors or dependents 

of Veterans to obtain a degree and pursue other 

eligible education and training

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DISABILITY COMPENSATION

Eligibility. Disability compensation is a monthly 

tax-free benefit paid to Veterans who are at least 

10% disabled because of injuries or diseases that 

were incurred in or aggravated during active duty 

or active duty for training. A disability can apply 

to physical conditions, such as a chronic knee 

condition, as well as a mental health conditions, 

such as post-traumatic stress disorder (PTSD). 

If you were on inactive duty for training, the 

disability must have resulted from injury, heart 

attack, or stroke. Your discharge from service must 

have been under other than dishonorable conditions. 

Compensation varies depending on the degree of 

your disability. (See VA’s compensation rate tables 

at www.vba.va.gov/bln/21/rates).

If you have dependents, an additional allowance 

may be added if your combined disability is rated 

30% or greater. Your compensation may be offset 

if you receive military retirement pay, disability 

severance pay, or separation incentive payments.

Special Monthly Compensation. Special Monthly 

Compensation may be payable in addition to the basic 

rate of compensation when the severity of certain 

disabilities or combination of disabilities involves: 

» Loss or loss of use of specific organs, sensory 

functions, or extremities, OR

» Disabilities that confine you to your residence, OR

» Disabilities that render you permanently 

bedridden or in need of aid and attendance, OR

» Combinations of severe disabilities that 

significantly affect walking, OR

» Existence of multiple, independent disabilities 

each rated at 50% or 100%, OR

» Existence of multiple disabilities which, in total, 

render you in need of such a degree of special skilled 

assistance that, without it you would be permanently 

confined to a skilled-care nursing home

How to Apply. The best way to apply for disability 

compensation is by obtaining an eBenefits account 

at www.ebenefits.va.gov and applying online. 

When applying for disability compensation benefits, 

you should have access to the following information:

» Discharge or separation papers (DD214 or 

equivalent), AND

» Information about military and private 

medical evidence (doctor and hospital reports) 

supporting your claim

You may be able to receive disability compensation 

benefits sooner if you submit all required medical 

evidence with your claim - learn more at:

www.benefits.va.gov/transformation/fastclaims.

PRESUMPTIVE DISABILITY BENEFITS

VA presumes that some disabilities are due to

military service. You may be eligible to receive 

service-connected disability benefits if you have 

a qualifying disability associated with certain 

conditions of service, such as: 

» Former Prisoners of War

» Vietnam Veterans exposed to Agent Orange 

» Gulf War Veterans with undiagnosed illnesses 

and medically unexplained chronic multisymptom illnesses.

To qualify for disability benefits based on 

presumptive conditions, you must have a disability 

associated with one of the criteria listed above. 

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CLOTHING ALLOWANCE

VA can provide you with one or more annual 

clothing allowance payments if you are a Veteran 

who:

» Uses a prosthetic or orthopedic device (including 

a wheelchair) because of a service-connected 

disability, AND/OR

» Has a service-connected skin condition and uses 

a medication that causes irreparable damage to 

outer garments

To receive payment(s), you must establish eligibility 

by August 1 of the year for which you claim 

payment(s). To apply, contact the representative 

in the prosthetic department at your nearest VA 

medical center.

AUTOMOBILE ALLOWANCE

If you are a Servicemember or Veteran with a disability, 

VA may provide you with a one-time allowance to 

purchase a new or used car to accommodate your 

service-connected disability. The funds are paid directly 

to the seller of the automobile.

To be eligible to receive an automobile allowance, 

Servicemembers or Veterans must have one of the 

following disabilities due to their military service:

» Loss of, or permanent loss of use of one or both 

feet, OR both hands, OR

» Permanent impairment of vision in both eyes 

that makes driving impossible even with normal 

corrective lenses, OR

» Certain severe burns

You may also be eligible for assistance in purchasing 

adaptive equipment, such as power steering, 

power brakes, power windows, power seats, or 

other special equipment that is necessary to 

safely operate your vehicle if you have any of the 

conditions above or ankylosis (immobility of the 

joint) of one or both knees or hips.

To apply, contact your nearest VA regional office 

or VA health care facility. For location assistance, 

call VA toll-free at 1-800-827-1000.

HOUSING GRANTS FOR DISABLED 

VETERANS

VA provides grants to Servicemembers and 

Veterans with permanent and total serviceconnected disabilities to help purchase or 

construct an adapted home, or modify an existing 

home to accommodate a disability. 

Specially Adapted Housing (SAH) Grant.

SAH grants help Servicemembers and Veterans 

with certain service-connected disabilities live 

independently in a barrier-free environment. 

SAH grants can be used in one of the following ways:

» Construct a specially adapted home on land to 

be acquired

» Build a home on land already owned if it is 

suitable for specially adapted housing

» Remodel an existing home if it can be made 

suitable for specially adapted housing

» Apply the grant against the unpaid principal 

mortgage balance of an adapted home already 

acquired without the assistance of a VA grant

Special Housing Adaptation (SHA) Grant.

SHA grants help Servicemembers and Veterans 

with certain service-connected disabilities adapt or 

purchase a home to accommodate the disability. 

You can use SHA grants in one of the following ways:

» Adapt an existing home the Servicemember, 

Veteran, or family member already owns in 

which the Servicemember or Veteran lives

» Adapt a home the Servicemember, Veteran, 

or family member intends to purchase in which 

the Servicemember or Veteran will live

» Help a Servicemember or Veteran purchase 

a home already adapted in which the 

Servicemember or Veteran will live

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Temporary Residence Assistance (TRA) Grant. TRA grants are available for Servicemembers and 

Veterans who qualify for either an SAH or SHA grant to adapt the home of a family member with whom the 

Servicemember or Veteran is temporarily living.

The table below provides an overview of VA’s housing grant programs for Servicemembers and Veterans 

with a service-connected disability.

VA Housing 

Grant Types 

& Eligibility 

Requirements

Eligibility Living 

Situation Ownership

Number of Grants 

You Can Use

Specially 

Adapted 

Housing 

(SAH) Grant

» Loss of or loss of use of both legs, OR

» Loss of or loss of use of both arms, OR

» Blindness in both eyes having only light 

perception, plus loss of or loss of use of 

one leg, OR

» The loss of or loss of use of one lower leg 

together with residuals of organic disease 

or injury, OR

» The loss of or loss of use of one leg together 

with the loss of or loss of use of one arm, OR

» Certain severe burns, OR

» Certain severe respiratory injuries

Permanent Home is owned by an 

eligible individual 

Maximum of 3 grants, up 

to the maximum dollar 

amount allowable

Special Housing 

Adaptation 

(SHA) Grant

» Blindness in both eyes with 5/200 visual acuity 

or less, OR

» Loss of or loss of use of both hands, OR

» Certain severe burn injuries, OR

» Certain severe respiratory injuries

Permanent

Home is owned 

by an eligible 

individual or family 

member

Maximum of 3 grants, up 

to the maximum dollar 

amount allowable

Temporary 

Residence 

Assistance 

(TRA) Grant

Based on eligibility for SAH or SHA grant

Temporary

Home is owned 

by an eligible 

individual’s family 

member

Maximum of 

1 grant

Amounts of assistance are set by law, but they may be adjusted upward annually based on a cost-ofconstruction index. No individual may use the grant benefit more than three times up to the aggregate amount. 

For additional information on the SAH/SHA grant programs, please visit: www.benefits.va.gov/homeloans.

To apply for an SHA or SAH grant, fill out and submit the Veterans Application in Acquiring Specially 

Adapted Housing or Special Home Adaptation Grant (VA Form 26-4555) at www.ebenefits.va.gov, 

download it at www.va.gov/forms, or call VA toll-free at 1-800-827-1000 to have a claim form mailed 

to you, or visit your local VA regional office. If you use the Telecommunications Device for the Deaf 

(TDD), the Federal Relay number is 711.

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VETERANS’ MORTGAGE LIFE 

INSURANCE (VMLI)

Veterans’ Mortgage Life Insurance (VMLI) is 

mortgage protection insurance that can help 

a disabled Servicemember or Veteran’s family 

by paying off the home mortgage in the event 

of the Servicemember or Veteran’s death. 

Eligibility. VMLI is only available to 

Servicemembers or Veterans with severe serviceconnected disabilities who:

» Received a Specially Adapted Housing (SAH) Grant 

from VA for assistance in building, remodeling, 

or purchasing an adapted home, AND

» Have the title to the home, AND

» Have a mortgage on the home

Servicemembers and Veterans must apply for VMLI 

before their 70th birthday. 

VMLI protection is issued automatically following 

SAH approval, provided you submit the information 

required to establish a premium and do not decline 

coverage. Coverage automatically terminates 

when the mortgage is paid off. If your mortgage is 

disposed of through sale of the property, you can 

obtain VMLI on the mortgage of another home.

Premiums. VMLI premiums vary according to your 

age, the outstanding balance of your mortgage 

at the time you apply, and the remaining length 

of the mortgage. VMLI premiums must be paid by 

deduction from your monthly compensation.

SERVICE-DISABLED VETERANS’ 

INSURANCE (S-DVI)

S-DVI is a life insurance benefit for Veterans 

who have service-connected disabilities but are 

otherwise in good health.

Eligibility. To obtain S-DVI, you must meet the 

following criteria: 

» You were discharged under other than dishonorable 

conditions on or after April 25, 1951, AND

» You received a rating for a service-connected 

disability (even if only 0%), AND

» You are in good health, except for any serviceconnected conditions, AND

» You apply within two years from the date VA 

notifies you that you have been approved for 

a new service-connected disability

Premiums. The premium you pay for S-DVI 

coverage depends on your age, type of plan 

(term or permanent), and the amount of coverage. 

If you are a Veteran with basic S-DVI coverage and 

are totally disabled, then you may apply to have 

your premiums waived.

VOCATIONAL REHABILITATION 

AND EMPLOYMENT (VR&E)

VR&E is specifically for Servicemembers and 

Veterans with service-connected illnesses and 

injuries. VA will evaluate your interests, aptitudes, 

abilities, and assess how your disability affects 

your ability to work. VR&E also provides a range 

of career services, including:

» Career counseling and rehabilitation planning for 

employment as job training, job-seeking skills, résumé 

development, and other work-readiness assistance 

Supplemental S-DVI is additional 

supplemental insurance coverage for Veterans 

who meet all of the following requirements:

» You have an S-DVI policy, AND

» The premiums on your basic coverage are 

being waived due to total disability, AND

» You apply within one year of being notified 

of the waiver, AND

» You are under 65 years of age

Premiums for this coverage cannot be waived.

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» On-the-Job Training (OJT), apprenticeships, 

and non-paid work experiences 

In addition, independent living services are also 

available if you are so severely disabled that you 

are not currently ready or able to work.

Eligibility. Servicemembers and Veterans are 

eligible for VR&E services under the following 

circumstances:

» You have a service-connected disability rating 

from VA of at least 10%,or a pre-discharge 

disability rating of 20% or more from VA, AND

» You have received, or will receive, an other than 

dishonorable discharge, OR

» If you are severely ill or injured and have been 

referred to a military Physical Evaluation Board 

or are participating in the military/VA Integrated 

Disability Evaluation System process, you may 

qualify without a VA rating 

In general, Veterans must use all VR&E services 

within 12 years from whichever of the following 

dates is later: 

» The date you separated from active military 

service, OR

» The date that VA first notified you that you have 

a qualifying service-connected disability rating

Frequently Asked Questions

What is VA disability compensation?

Disability compensation is a tax-free benefit paid to a Veteran because of a serviceconnected disability.

What is a service-connected disability?

A service-connected disability is a disability related to an injury or disease that developed 

during or was aggravated while on active duty or active duty for training. VA also pays disability 

compensation for disabilities resulting from injury, heart attack, or stroke that occurred during 

inactive duty training. 

Who is eligible to receive disability compensation from VA?

You may be eligible for disability compensation if you have a service-connected disability 

and were discharged under other than dishonorable conditions.

VA adopted five core values that define “who we 

are,” our culture, and how we care for Veterans, 

their families, and other beneficiaries. The values 

are Integrity, Commitment, Advocacy, Respect, 

and Excellence (I-CARE).

I CARE

DEPARTMENT OF VETERANS AFFAIRS

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U.S. Department of Veterans Affairs

Veterans Benefits Administration

Washington, DC 20420

T 800-827-1000

www.va.gov/benefits

For More Information

For more information about disability 

compensation benefits, including 

eligibility, establishing a service-connected 

disability, and how to apply, please:

» Find links to VA benefits information and apply 

at www.ebenefits.va.gov

» Visit us at www.va.gov/benefits 

» Use IRIS, VA’s tool to find information and ask 

questions online at https://iris.custhelp.com

» Call us at 1-800-827-1000

» Visit the nearest VA regional office. To find the 

VA regional office nearest you, go to our website 

or call VA toll free at 1-800-827-1000 

Additional VA Benefits

Disabilities determined by VA to be related to 

your military service can lead to monthly nontaxable compensation, enrollment in the VA 

health care system, a 10-point hiring preference 

for federal employment, and other important 

benefits. Ask your VA representative or Veterans 

Service Organization (VSO) representative about 

Disability Compensation, Pension, Health Care, 

Caregiver Program, Vocational Rehabilitation and 

Employment Services, Educational Assistance, Home 

Loan Guaranty, Insurance, and/or Dependents’ 

and Survivors’ Benefits. You can search for a VSO 

representative online at www.ebenefits.va.gov. 

Thank you for your service. 

Now let us serve you.

VA PAM 21-12-1

September 2012

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