Order Code RL34626
Veterans’ Benefits:
An Overview of Benefits
for Disabled Veterans
August 21, 2008
St Jalisa E. Miller
Research Associate
Domestic Social Policy Division
Christine Scott
Specialist in Social Policy
Domestic Social Policy Division
Carol D. Davis
Information Research Specialist
Knowledge Services Group

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Veterans’ Benefits: An Overview of Benefits
for Disabled Veterans
Summary
Although U.S. Armed Forces are deployed around the globe, a number of
servicemembers are currently serving in the Operation Enduring Freedom (OEF) and
Operation Iraq Freedom (OIF) combat zone. As a result of the risks facing these
servicemembers, some of them are incurring injuries or illnesses during their active
service (or having existing medical conditions worsen as a result of their service).
Congress has shown an interest in the treatment of injured servicemembers while
undergoing medical treatment and their transition from military to civilian life as
veterans. An injured servicemember (or veteran) may require specific types of
assistance or benefits to enable him or her to have a better quality of life.
The Department of Veterans Affairs (VA) provides a range of benefits for
veterans. However, certain benefits have specifically been created to assist disabled
veterans.
Disability compensation provides a monthly cash benefit to veterans whose
disabilities resulted from injury or disease contracted in or aggravated by military
service. The amount is based on the level disability.
The Vocational Rehabilitation and Employment (VR&E) program is designed
to help veterans with service-connected disabilities prepare for, find, and keep
suitable jobs. Assistance is also available to help veterans with living skills.
Automobile and special adaptive equipment grants are available to certain
disabled veterans and servicemembers to purchase new or used automobiles (or other
conveyances) to accommodate a disability.
Clothing allowances are designed for certain veterans entitled to receive
compensation for a service-connected disability for which he or she uses a prosthetic
or orthopedic device.
Housing grants are provided for constructing an adapted home or modifying an
existing home to meet the adaptive needs of certain veterans and servicemembers.
Three grants are available for permanent residences, and two grants are available for
temporary residences.
Service Disabled Veterans’ Insurance (S-DVI) is life insurance for veterans
who have received a service-connected disability rating by the VA.
This report provides information on these benefits, including eligibility, history,
and the application process. Information regarding spending and the beneficiaries of
these benefits is in the Appendix to this report. This report will be updated as new
information becomes available.

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Contents
Disability Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Legislative History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Eligibility and Application Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Vocational Rehabilitation and Employment Program . . . . . . . . . . . . . . . . . . . . . . 3
Legislative History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Eligibility and Application Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Automobile and Special Adaptive Equipment Grants . . . . . . . . . . . . . . . . . . . . . . 5
Legislative History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Eligibility and Application Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Clothing Allowance Grant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Legislative History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Eligibility and Application Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Adapted Housing Grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Specially Adapted Housing Grant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Special Home Adaptation Grant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Home Improvements and Structural Alterations Grant . . . . . . . . . . . . . . . . . 8
Temporary Residence Grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Legislative History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Recent Changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Eligibility and Application Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Service Disabled Veterans’ Insurance (S-DVI) . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Legislative History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Eligibility and Application Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Appendix. Utilization of Disabled Veterans Benefits . . . . . . . . . . . . . . . . . . . . 12
List of Tables
Table A-1. Beneficiaries and Spending on Benefits for Disabled Veterans
in FY2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

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Veterans’ Benefits: An Overview of Benefits
for Disabled Veterans
Although U.S. Armed Forces are deployed around the globe, a number of
servicemembers are currently serving in the Operation Enduring Freedom (OEF) and
Operation Iraq Freedom (OIF) combat zone. As a result of the risks facing these
servicemembers, some of them are incurring injuries or illnesses during their active
service (or having existing medical conditions worsen as a result of their service).
Congress has shown an interest in the treatment of injured servicemembers while
undergoing medical treatment and their transition from military to civilian life as
veterans. An injured servicemember (or veteran) may require specific types of
assistance or benefits to enable him or her to have a better quality of life.
The VA provides a range of benefits for veterans who meet certain eligibility
criteria. However, certain benefits have specifically been created to assist disabled
veterans. Among them are disability compensation, the vocational rehabilitation and
employment program, automobile and special adaptive equipment grants, clothing
allowances grants, adapted housing grants, and service-disabled veterans’ insurance.
This report provides information on these benefits, including eligibility,
legislative history, and the application process. The appendix to this report provides
a table with the number of beneficiaries and FY2007 outlays (spending) for each of
the benefits discussed in this report.
Disability Compensation
Disability compensation provides a monthly cash benefit to veterans who have
incurred an injury or disease contracted in, or aggravated by, active military service.1
The benefit level is determined by the level of disability.2 A disability rating is
assigned (from 0% to 100% in increments of 10%) by the VA after a physical
examination of all body systems for which the veteran is claiming a disability.
However, a cash benefit is only provided to veterans with a rating of 10% or more.
The basic benefit amount ranges from $115 to $2,471 per month, depending on
the disability rating. Additional amounts can be paid in certain circumstances,
1 38 U.S.C. § 1131.
2 For more information on the VA’s disability rating schedule, see CRS Report RL33991,
Disability Evaluation of Military Servicemembers, by Christine Scott, Sidath Viranga
Panangala, and Charles A. Henning; and for a more thorough description of the rating
process, see CRS Report RL33323, Veterans Affairs: Benefits for Service-Connected
Disabilities, by Douglas Reid Weimer.

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CRS-2
including severe disabilities or loss of limbs; having a spouse, dependent children,3
or dependent parents; or having a disabled spouse.
Legislative History
Prior to World War I, disability compensation was a component of the pension
program based on military service in a particular conflict. The World War Veterans
Act of 1924 (P.L. 242), and later codified by P.L. 85-56 and P.L 85-857 established
the modern disability compensation program.4
Eligibility and Application Process
A veteran may be eligible for disability compensation if (1) the veteran is
disabled resulting from personal injury suffered or disease contracted in the line of
duty, or for aggravation of a preexisting injury suffered or disease contracted in the
line of duty, in the active military, naval, or air service, during a period of war and
(2) if the veteran was discharged or released under conditions other than dishonorable
from the period of service in which the injury was incurred.5 The VA makes a case-
by-case determination of whether the discharge was under “conditions other than
dishonorable” and can review dishonorable discharges to determine whether the
veteran may be eligible for VA benefits.6
The application process requires proving a medical diagnosis of current
disability, medical evidence of the in-service incident or the worsening of an injury
or disease, and a link between the in-service incident or the worsening of a disease
and military service. To apply, a veteran completes VA Form 21-526 and provides
the following materials: discharge or separation papers (Department of Defense Form
DD214 or its equivalent) and dependency records (marriage license and children’s
birth certificates). The VA will then review the documentation and schedule an
examination for the disability evaluation.
After the examination, a disability rating is assigned. If the rating is 10% or
more, the veteran will then receive his or her disability compensation payment at the
beginning of the next month.
3 This includes children between the ages of 18 and 23 attending college.
4 For more information on the legislative history of the disability compensation program, see
VA Disability Compensation Program Legislative History December 2004 Report, by VA
Office of Policy, Planning, and Preparedness, pp. 33-39, available at [https://www.1888932
-2946.ws/vetscommission/e-documentmanager/gallery/Documents/Reference_Materials/
LegislativeHistory_12-2004.pdf]. (Hereinafter referred to as VA Disability Compensation
Program Legislative History December 2004 Report).
5 38 U.S.C. § 1110.
6 For a more detailed description of eligibility and the claims process, see CRS Report
RL33113, Veterans Affairs: Basic Eligibility for Disability Benefit Programs, by Douglas
Reid Weimer.

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Vocational Rehabilitation and
Employment Program
The Vocational Rehabilitation and Employment (VR&E) program is designed
to help veterans with service-connected disabilities prepare for, find, and keep
suitable jobs. Veterans with severe service-connected disabilities who cannot
immediately consider work are offered other services by the VR&E to improve their
ability to live as independently as possible.7
Legislative History
The vocational rehabilitation program for veterans began in 1918. With the end
of World War I, concerns were raised about ensuring that returning disabled
servicemembers be provided a mechanism for resuming productive economic lives.
The Vocational Rehabilitation Act (P. L. 65-178), which was enacted by Congress
in 1918, provided for “vocational rehabilitation and return to civil employment of
disabled persons discharged from military or naval forces of the United States.”8
Under current law, the VR&E program must provide a number of services
including the following:9

! a comprehensive rehabilitation evaluation to determine a veteran’s
abilities, skills, interests, and needs;
! vocational counseling and rehabilitation planning;
! employment services such as job-seeking skills, resumé
development, and other work readiness assistance;
! assistance finding and keeping a job (including the use of special
employer incentives);
! on-the-job training, apprenticeships, and non-paid work experiences
(if needed);
! post-secondary training at a college, vocational, technical, or
business school;
! supportive rehabilitation services (including case management,
counseling, and referral); and
! independent living services.
Eligibility and entitlement must be established for participation in this program.
A veteran who has an employment handicap and is eligible for the VR&E program
is entitled to all applicable services.
7 38 U.S.C. § 3102.
8 VA Disability Compensation Program Legislative History December 2004 Report.
9 For more information regarding the services of the VR&E program, see CRS Report
RL34627, Veterans’ Benefits: The Vocational Rehabilitation and Employment Program, by
Beverley A. Crane, Christine Scott, and Carol D. Davis.

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Eligibility and Application Process
The eligibility process involves a two-step process to establish eligibility and
entitlement. To be eligible in the VR&E program, a veteran must (1) have received
or will receive a discharge that is other than dishonorable and (2) have a service-
connected disability rating of at least 10%.10
There is a limitation in the period of eligibility. VR&E services may be used up
to 12 years from the latter of the following dates:
! date of separation from active military service or
! date the veteran was first notified by the VA of a service-connected
disability rating.
The period of eligibility may be extended if a Vocational Rehabilitation
Counselor (VRC) determines that a veteran has a serious employment handicap.
After eligibility is established, the veteran meets with a VRC for a
comprehensive evaluation to determine whether the veteran is entitled to services.
The comprehensive evaluation includes the following:
! an assessment of the veteran’s interests, aptitudes, and abilities;
! an assessment of whether service-connected disabilities impair the
veteran’s ability to find or hold a job using the occupational skills
that he or she has already developed; and
! vocational exploration and goal development.
An entitlement determination is required to enter the VR&E program. On the
basis of the results of the comprehensive evaluation, a VRC determines whether a
veteran has an employment handicap. A veteran is entitled to services if the veteran
is within the period of eligibility, has a 20% or greater service-connected disability
rating, and has an employment handicap.
If the service-connected disability rating is less than 20% or if the veteran is
beyond the period of eligibility, then a serious employment handicap must be found
to establish entitlement to VR&E services.
After the entitlement determination is made, the VRC and the veteran work
together to
! select a VR&E program track leading to an employment or
independent living goal;
! identify viable employment or independent living service options;
! determine transferable skills;
! explore labor market and wage information;
! identify physical demands and other job characteristics;
! narrow vocational options to identify a suitable employment goal;
10 38 U.S.C. § 3102.

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CRS-5
! investigate training requirements;
! identify resources needed to achieve rehabilitation; and
! develop an individualized rehabilitation plan to achieve the
identified employment or independent living goal.
The rehabilitation plan is an individualized written outline of the services,
resources, and criteria that will be used to achieve successful rehabilitation. It is an
agreement that is signed by the veteran and the VRC and is reviewed annually to
determine whether any changes are needed.
Depending on their circumstances, veterans will work with their VRCs to select
one of the following five tracks of services:11
! re-employment;
! rapid employment services for new employment;
! self-employment;
! employment through long-term services; or
! independent living services.
After a rehabilitation plan is developed and signed, a VRC or case manager will
continue to work with the veteran to implement the plan to achieve suitable
employment or independent living. The VRC or case manager may coordinate
services such as tutorial assistance, training in job-seeking skills, medical and dental
referrals, adjustment counseling, payment of training allowance, if applicable, and
other services as required to achieve rehabilitation.
If a veteran is found to be ineligible for services, the VRC will help him or her
locate other resources to address any rehabilitation and employment needs identified
during the evaluation. Other resources that the veteran may be referred to include
state vocational rehabilitation programs, Department of Labor employment programs
for disabled veterans, local agencies providing services for employment or small
business development, Internet-based resources for rehabilitation and employment,
and information about applying for financial aid.
Automobile and Special Adaptive Equipment Grants
Financial assistance is available to certain disabled veterans and servicemembers
to purchase new or used automobiles (or other conveyances) to accommodate a
disability. The veteran or servicemember may only receive the automobile grant
once in his or her lifetime. The grant is up to $11,000 and is paid directly to the
seller of the automobile to be applied to the total price of the automobile.12 Certain
11 For more information on the five tracks of services, see CRS Report RL34627, The
Vocational Rehabilitation and Employment Program Report, by Beverley A. Crane,
Christine Scott, and Carol D. Davis.
12 38 U.S.C. § 3902.

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CRS-6
veterans who need to have a vehicle specially adapted due to their service-connected
disability may qualify for the adaptive equipment grant.
Legislative History
P.L. 79-663 in 1946 and P.L. 80-785 in 1948 appropriated funding for helping
disabled World War II veterans in purchasing automobiles. The two laws specified
a $1,600 per-vehicle allowance, but they did not place a limitation on the number of
cars a veteran could purchase. Because this limitation was not in place, some
qualified veterans could not receive benefits due to a shortfall in funding.
In 1950, P.L. 81-798 authorized the VA to pay up to $1,600 of the costs for
disabled World War II veterans to purchase specially adapted automobiles, with a
limit of one assisted automobile purchase per veteran.13
Eligibility and Application Process
The adapted automobile grants are available to any veteran or servicemember
entitled to compensation as the result of certain injuries incurred or diseases
contracted in or aggravated by active military, naval, or air service. Those specific
injuries include the loss or permanent loss of use of one or both feet, one or both
hands, or permanent impairment of vision.14
Veterans can apply for the grant by submitting VA Form 21-4502 (completing
only Section I) to the local VA regional office to establish entitlement. The VA will
complete Section II, which certifies eligibility, and return the original to the veteran.
The veteran is then responsible for obtaining the invoice from the seller, completing
Section III, and submitting the completed form to the local VA regional office.
If the veteran is entitled to adaptive equipment only (i.e., service-connected for
ankylosis, or stiff or fixed joints, of the knees or hips), the veteran would complete
VA Form 10-1394, Application for Adaptive Equipment-Motor Vehicle, and submit
it to the local VA medical center. Additionally, VA Form 10-1394 should be
completed for approval of equipment not specified on VA Form 21-4502.
Clothing Allowance Grant
The clothing allowance benefit is designed for any veteran who is entitled to
receive compensation for a service-connected disability for which he or she uses a
prosthetic or orthopedic device. The allowance is also available to any veteran whose
service-connected skin condition requires prescribed medication that irreparably
damages the veteran’s outer garments.
13 For more information on the legislative history on specially adapted vehicle funding, see
VA Disability Compensation Program Legislative History December 2004 Report.
14 38 U.S.C. § 3901.

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Legislative History
In 1972, Congress mandated under P.L. 92-328 that the VA Administrator shall
pay a clothing allowance to each veteran because of a service-connected disability.
This law was passed due to disability devices wearing out or tearing up the clothing
of the veteran. The allowance was originally set at $150 per year, but it has been
increased by legislation to the current annual level of $677.15
Eligibility and Application Process
To apply for the annual clothing allowance, a veteran completes VA Form 10-
8678.16
Enrollment for the benefit is for one year. Each year the enrollment is reviewed
and may be renewed depending upon the priority group.17 Priority groups range from
1 to 8 with 1 being the highest priority for enrollment. This assignment is based on
eligibility status, which is determined during the application process.18
Adapted Housing Grants
Housing grants are provided for constructing an adapted home or modifying an
existing home to meet the adaptive needs of veterans and totally disabled members
of the Armed Forces before discharge or release from the Armed Forces. Three
grants are available for permanent residences, and two grants are available for
temporary residences. However, the eligibility criteria differs for these five programs
(see discussion on Eligibility and Application Process below).
Specially Adapted Housing Grant
The specially adapted housing (SAH) grants are for constructing an adapted
home or modifying an existing home to meet the adaptive needs of veterans or totally
disabled members of the Armed Forces before discharge or release from the Armed
Forces. The goal is to provide a barrier-free living environment that affords the
veteran or servicemember a level of independent living that he or she may not have
otherwise enjoyed. The grant is currently limited to $60,000 per lifetime. 19
15 38 U.S.C. § 1162. The current level of $677 was payable beginning on August 1, 2008.
16 To download this form, go to [https://www.1010ez.med.va.gov/sec/vha/1010ez/].
17 For more information regarding this benefit, contact the nearest VA Regional Office.
18 For more information on priority group assignment, see CRS Report RL33993, Veteran’s
Health Care Issues, by Sidath Viranga Panangala.
19 38 U.S.C. § 2101.

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Special Home Adaptation Grant
There is also the special home adaptation (SHA) grant. This grant is used to
assist disabled veterans and servicemembers with mobility throughout their homes.
This grant is currently limited to $12,000 per lifetime.
Home Improvements and Structural Alterations Grant
Under the home improvements and structural alterations (HISA) grant program,
assistance is provided for any home improvement necessary for the continuation of
the disabled veterans and servicemembers’ treatment, or for disability access to the
home and essential lavatory and sanitary facilities. A HISA grant is available to
veterans and servicemembers who have received a medical determination indicating
that improvements and structural alterations are necessary or appropriate for the
effective and economical treatment of his or her disability. A veteran or
servicemember may receive both a HISA grant and either a SHA or SAH grant.
Temporary Residence Grants
The VA can also provide specially adapted housing grants to disabled veterans
and servicemembers temporarily living in a home owned by a family member up to
$14,000 for a SAH or $2,000 for a SHA grant.20
Legislative History
In 1948, P.L. 80-702 authorized the VA to pay up to 50% of the cost for a
disabled veteran to purchase a new home or modify existing housing to adapt it to
accommodate his or her disability. The law had a one-year limitation (after
discharge) for the entitlement, but this was flexible under specific circumstances. It
also gave the VA authority to add other chronic diseases within its eligibility lists.
In 2006, the law made several significant changes to the SAH benefit. An
eligible veteran or active duty servicemember can now use the benefit for up to three
occurrences as long as the aggregate granted by the administrator does not exceed the
maximum amount allowable.
This benefit extended to previous grant recipients. However, they could obtain
subsequent grants to pay for adaptations made prior to June 15, 2006, or to reduce an
existing mortgage principal balance for properties acquired prior to June 15, 2006.
Recent Changes. P.L. 110-289, the Housing and Economic Recovery Act
of 2008, was signed into law on July 30, 2008, and made several changes related to
home modifications for veterans:
20 For more information on active duty adaptive housing grants, see [http://www.homeloans.
va.gov/sah.htm].

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! amends eligibility Chapter 21 of Title 38, United States Code, by
inserting after Section 2101 that members of the Armed Forces with
service-connected disabilities and individuals residing outside the
United States are also eligible for adapted housing benefits and
assistance;
! adds assistance for members of the Armed Forces with service-
connected disabilities residing temporarily in housing owned by a
family member;
! amends Section 2101 of Title 38, United States Code, by providing
specially adapted housing assistance for individuals with severe burn
injuries;
! amends Section 2102A(e) of Title 38, United States Code, by
extending assistance for individuals residing temporarily in housing
owned by a family member; and
! increases the benefit amount for specially adapted housing for
disabled veterans.
Eligibility and Application Process
The SAH benefit is available to veterans and servicemembers who have a
service-connected disability due to military service. This service-connected disability
must entitle them to compensation for permanent and total disability due to
! the loss or loss of use of both lower extremities, such as to prevent
locomotion without the aid of braces, crutches, canes, or a
wheelchair;
! blindness in both eyes, having only light perception, plus the loss of
use of one lower extremity;
! the loss or loss of use of one lower extremity together with (1)
residual of organic disease or injury, or (2) the loss or loss of use of
one upper extremity, which also affects the functions of balance or
propulsion as to prevent movement without the aid of braces,
crutches, canes, or a wheelchair;
! disability due to a severe burn injury; and
! the loss or loss of use of both upper extremities such as to prevent
the use of the arms at or above the elbow.
The SHA grant is available to veterans and servicemembers who have service-
connected disability due to military service, entitling them to compensation for
permanent and total disability due to
! blindness in both eyes with 5/200 visual acuity or less or
! the anatomical loss or loss of use of both hands or extremities below
the elbow.
The HISA program is available for both service-connected disabled individuals
and non service-connected disabled veterans as detailed below:
! home improvement benefits up to $4,100 may be provided to
service-connected disabled individuals and

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CRS-10
! home improvement benefits up to $1,200 may be provided to
nonservice-connected disabled veterans.
To apply for the SAH and SHA grants, a servicemember completes and submits
VA Form 26-4555, Veterans Application in Acquiring Specially Adapted Housing
or Special Home Adaptation Grant, to the local VA regional office. To apply for the
HISA grant, the servicemember completes VA Form 10-0103, Veterans Application
for Assistance in Acquiring Home Improvement and Structural Alterations, and
submits it to the local VA medical center.21
Service Disabled Veterans’ Insurance (S-DVI)
Service Disabled Veterans’ Insurance (S-DVI) is life insurance for veterans who
have received a service-connected disability rating from the VA. The basic S-DVI
program insures eligible veterans for up to $10,000 of coverage. Veterans who have
basic S-DVI coverage and are totally disabled before age 65 are eligible to have their
premiums waived.22
If a premium waiver is granted, a totally disabled veteran may apply for
additional coverage up to $20,000 under the Supplemental S-DVI program.
Premiums for Supplemental S-DVI coverage, however, cannot be waived. The cost
varies depending upon age, type of plan, and the amount of coverage.
Legislative History
The Insurance Act of 1951 (P.L. 85-857) established the Service-Disabled
Veterans’ Insurance (S-DVI) program for veterans with service-connected
disabilities. S-DVI is open to veterans who separated from the service on or after
April 25, 1951, who received a service-connected disability rating of 0% or greater.
The Veterans’ Benefit Act of 1992 (P.L. 102-568) adjusted the current program and
provided for $20,000 of supplemental coverage to S-DVI policyholders.23
To protect veterans who become incompetent from a service-connected
disability while eligible to apply for S-DVI and who die before an application is filed,
P.L 85-857 was amended in 1991 by P.L. 102-86. This insurance is issued
posthumously, and it is payable to a preferred class of the veteran’s relatives in a
lump sum.24
To provide veterans with financial relief from high premium rates at advanced
ages, S-DVI term premiums were “capped” at the age 70 renewal rate effective
21 For more information, see [http://www.homeloans.va.gov/sah.htm].
22 38 U.S.C. § 1922.
23 Ibid.
24 For a definition of the preferred class of veteran’s relatives, see VA Life Insurance
Programs for Veterans and Servicemembers 2008 Booklet, at [http://www.insurance.va.gov/
inForceGliSite/GLIhandbook/glibooklet.pdf].

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November 1, 2000, by P.L. 106-419. This means that the annual premium for these
policies will not exceed $69.73 per $1,000 of coverage.
Eligibility and Application Process
To be eligible for S-DVI, a veteran must have25
! received other than a dishonorable discharge;
! been released from active duty after April 25, 1951; and
! received a rating for a new service-connected disability within the
last two years.
However, the veteran does not need to have a 100% rating to be eligible. Veterans
who receive a new rating of even 0% are eligible for the coverage.26 The veteran
must apply for the insurance within two years from the date he or she is notified that
service-connection has been established.
S-DVI policyholders are eligible for supplemental coverage if
! they are eligible for a waiver of premiums on their S-DVI policy due
to total disability;
! they apply for the coverage within one year from notice of the grant
of waiver; or
! they are under age 65.
A veteran applies for the basic S-DVI using the VA Form 29-4364. To apply
for the supplemental S-DVI, the veteran must complete VA Form 29-0189 or submit
a letter requesting supplemental S-DVI. To receive a total disability waiver of S-DVI
premiums, a veteran must fill out VA Form 29-357. Submission of all forms can be
done at the local VA regional office or online at the Department of Veteran Affairs
website.27
25 38 U.S.C. § 1922.
26 A veteran can have a service-connected disability with a rating of 0%.
27 For more information on the veteran’s insurance application process, refer to
[http://www.insurance.va.gov/inForceGliSite/buying/SDVI.htm].

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Appendix. Utilization of Disabled Veterans Benefits
Table A-1. Beneficiaries and Spending on Benefits
for Disabled Veterans in FY2007
Number of
Outlays
Benefit
Beneficiaries
(Spending)
(in thousands)
(in millions of $)
Disability Compensation
2,789.5
29,091.2
(for veterans)
Vocational Rehabilitation and Education
67.2
568.3
(for veterans, spouses, and certain
dependents)a
Adaptive Automobile and Equipment
8.5
53.4
Grants (for disabled veterans and
servicemembers)
Clothing Allowances
89.0
58.7
(for veterans)
Adaptive Housing Grant
0.8
27.8
(for veterans and disabled
servicemembers)
Service Disabled Veterans’ Insurance
162.6 83.9
(for veterans)b
Source. Table provided by the CRS compilation of data from the Department of Veteran Affairs
(VA), FY2009 Budget Submission Benefits and Burial Programs and Departmental Administration,
Volume 3 of 4, Table, pp. 2A-2 to 2A-3, 2B-2 to 2B-3, and 2G-10 to 2G11. Available at
[http://www.va.gov/budget/summary/2009/Volume_3-Benefits_and_Burial_and_Dept_Admin.pdf].
a. This does not include those receiving VR&E counseling services.
b. Outlays for Service-Disabled Veterans Insurance are gross outlays. Net outlays after offsetting
collections are $(-8.1) million.

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