US Code

Public Law 119-73 (01/23/2026)

38 U.S.C. § 1952

Optional settlement

(a)
The Secretary may provide in insurance contracts for optional settlements, to be selected by the insured, whereby such insurance may be made payable either in one sum or in installments for thirty-six months or more. A provision may also be included in such contracts authorizing the beneficiary to elect to receive payment of the insurance in installments for thirty-six months or more, but only if the insured has not exercised the right of election as provided in this subchapter. Even though the insured may have exercised the right of election the beneficiary may elect to receive such insurance in installments spread over a greater period of time than that selected by the insured. Notwithstanding any provision to the contrary in any insurance contract, the beneficiary may, in the case of insurance maturing after , and for which the insured has not exercised the right of election of the insured as provided in this subchapter, elect to receive payment of the insurance in one sum.
(b)
Under such regulations as the Secretary may promulgate, the cash surrender value of any policy of insurance or the proceeds of an endowment contract which matures by reason of completion of the endowment period may be paid to the insured (1) in equal monthly installments of from thirty-six to two hundred and forty in number, in multiples of twelve; or (2) as a refund life income in monthly installments payable for such periods certain as may be required in order that the sum of the installments certain, including a last installment of such reduced amount as may be necessary, shall equal the cash value of the contract, less any indebtedness, with such payments continuing throughout the lifetime of the insured. However, all settlements under option (2) above shall be calculated on the basis of The Annuity Table for 1949. If the option selected requires payment of monthly installments of less than $10, the amount payable shall be paid in such maximum number of monthly installments as are a multiple of twelve as will provide a monthly installment of not less than $10.
(c)
(1)
section 1950 of this title Following the death of the insured and in a case not covered by —
(A)
if the first beneficiary otherwise entitled to payment of the insurance does not make a claim for such payment within one year after the death of the insured, payment may be made to another beneficiary designated by the insured, in the order of precedence as designated by the insured, as if the first beneficiary had predeceased the insured; and
(B)
if, within two years after the death of the insured, no claim has been filed by a person designated by the insured as a beneficiary and the Secretary has not received any notice in writing that any such claim will be made, payment may (notwithstanding any other provision of law) be made to such person as may in the judgment of the Secretary be equitably entitled thereto.
(2)
Payment of insurance under paragraph (1) shall be a bar to recovery by any other person.

Pub. L. 85–85772 Stat. 1161Pub. L. 91–291, § 1284 Stat. 332Pub. L. 97–66, title IV, § 403(b)95 Stat. 1031Pub. L. 99–576, title VII, § 701(32)100 Stat. 3293Pub. L. 102–83105 Stat. 404–406Pub. L. 108–183, title I, § 103(b)117 Stat. 2655Pub. L. 117–313, § 2(b)136 Stat. 4399(, , , § 752; , , ; , , ; , , ; renumbered § 1952 and amended , §§ 4(b)(1), (2)(E), 5(a), , ; , , ; , , .)

Editorial Notes

Amendments

Pub. L. 117–313, § 2(b)(1)2022—Subsec. (c)(1)(A). , substituted “one year” for “two years”.

Pub. L. 117–313, § 2(b)(2)Subsec. (c)(1)(B). , substituted “two years” for “four years”.

Pub. L. 108–1832003—Subsec. (c). added subsec. (c).

Pub. L. 102–83section 752 of this title1991— renumbered as this section and substituted “Secretary” for “Administrator” in subsecs. (a) and (b).

Pub. L. 99–5761986—Subsec. (a). substituted “the right” for “his right” in two places.

Pub. L. 97–661981—Subsec. (a). inserted provision empowering beneficiaries, in the case of insurance maturing after , and for which the insured has not exercised the right of election of the insured as provided in this subchapter, to elect to receive payment of the insurance in one sum.

Pub. L. 91–2911970— designated existing provisions as subsec. (a) and added subsec. (b).

Statutory Notes and Related Subsidiaries

Effective Date of 2022 Amendment

Pub. L. 117–313section 2(c) of Pub. L. 117–313section 1917 of this titleAmendment by applicable with respect to the death of an insured person occurring on or after the date that is two years before , see , set out as a note under .

Effective Date of 2003 Amendment

Pub. L. 108–183section 103(c) of Pub. L. 108–183section 1917 of this titleAmendment by effective , see , set out as a note under .

Effective Date of 1981 Amendment

Pub. L. 97–66section 701(b)(1) of Pub. L. 97–66section 1114 of this titleAmendment by effective , see , set out as a note under .

Effective Date of 1970 Amendment

Pub. L. 91–291section 14(a) of Pub. L. 91–291section 1317 of this titleAmendment by effective first day of first calendar month which begins more than six calendar months after , see , set out as a note under .

Transition Provision

section 103(d) of Pub. L. 108–183section 1917 of this titleFor transition provision relating to subsec. (c)(1) of this section, see , set out as a note under .