Federal Benefits: Other Department of Defense Benefits

The Department of Defense provides additional important benefits for  the survivors of veterans who die on active duty. Benefits include  Death Gratuity, a housing benefit, medical/dental benefits, and life  insurance death settlement.

Death Gratuity

The Death Gratuity is a lump sum payment of $100,000. Its purpose is to  help assist the survivors with their immediate financial needs. The  Death Gratuity is normally provided within 24-72 hours to the family of  a service member who dies on active duty. The money is normally  delivered by the Casualty Assistance Calls Officer (CACO), a service  member assigned to assist the surviving family. It is the CACO's job to  comfort the family and help them understand and apply for all their  government benefits.

Housing Benefits

For families living in government quarters at the time of a service  member's death, they may remain there for 1 year rent-free. After that,  it is up to the Base Commander's discretion whether to allow the family  to remain in the housing for an additional short period of time.  Extensions are usually granted. However, after 1 year, the family will  be charged fair market rent for the quarters. Families not living in  government quarters, will receive a lump sum payment of 1 year of Basic  Allowance for Housing (BAH) for the area of residence.

Medical and Dental Benefits

The surviving family continues to receive medical and dental services  as if in an active duty dependent status for three years. After that,  they can elect to enroll in the TRICARE system.

Servicemembers Group Life Insurance (SGLI)

Most service members have coverage under the Serviceman's Group Life Insurance (SGLI). The maximum coverage is $400,000. Life insurance  death benefits are tax-exempt to the beneficiary. SGLI now has an  excellent feature - one-year free financial counseling services from a  nationally respected financial planning firm under contract to the  government. They will prepare a financial plan for the SGLI Beneficiary  to help him/her make maximum use of the SGLI benefit and other  financial resources to provide a secure income stream. The government  contracted financial planning firm will then provide additional  financial counseling for one year.