What is it?
Dependency & Indemnity Compensation (DIC) is a tax-free monthly stipend to a surviving spouse, child, or dependent parent of a veteran who died during active duty or died due to a service-connected condition. If the veteran was service-connected at 100% for the last 10 years preceding his/her death, the surviving dependent will also qualify for DIC benefits.
What are the requirements?
Must be married to the veteran or a dependent child or parent at the time of the veteran’s death, and
the veteran must have died from a service-connected condition or service-connected at 100% for 10 years before his/her death.
How much does the surviving spouse get?
As of 2024, the monthly DIC benefit is $1,437.66.1
Do we take them?
Generally, No.
UNLESS the veteran died from a service-connected condition or something, we would be able to get service-connected, such as cancer, due to toxic exposure.
If they died from something that wasn’t related to service, refer them to DAV for help.
How to apply for DIC
Have the surviving spouse/dependent sign a rep packet as the claimant with the veteran’s information in the veteran section.
Make sure to ask for a copy of the death certificate with the intake information.
Generate 21-534EZ ("Application for DIC, Death Pension, and/or Accrued Benefits") from neos.
If the veteran has a claim pending at the time of their death OR if the veteran has received a decision within the past year, make sure to apply for substitution and an application for accrued benefits (VA Forms 21P-601 and 21P-0847 - coded in neos), just to cover all of your bases.2
DIC versus Accrued Benefits/Substitution
Dependency and Indemnity Compensation (DIC): a benefit paid directly to survivors of deceased veterans due to service-connected causes. (VA Form 21P-534EZ)
Accrued Benefits: benefits the veteran was entitled to before their death but did not receive. Survivors can apply for these benefits if they have not already been paid. (VA Form 21P-601)
Substitution: Allows a surviving spouse, child, or dependent parent to substitute into the veteran's place for any claims or appeals the veteran had pending at the time of their death. It's a way to continue pursuing VA benefits that the veteran was in the process of claiming but did not live to receive. (VA Form 21P-0847)
Additional amounts may be added for dependent children or if the surviving spouse is eligible for Aid and Attendance (A&A) or Housebound benefits.
This way, the surviving spouse or dependent can keep the claim alive and be paid whatever the veteran should have received if they had lived.
Sample Case - J.H.