Bill Overview
Title: Faster Payments to Veterans' Survivors Act of 2022
Description: This act modifies policies and procedures related to the payment of benefits under certain life insurance programs administered by the Department of Veterans Affairs (VA). If a primary beneficiary has not made a claim for payment within one year (currently two years) after the death of the insured under the National Service Life Insurance (NSLI) program or the United States Government Life Insurance (USGLI) program, the VA is authorized to make payment to another designated beneficiary as if the primary beneficiary had predeceased the insured. If no designated beneficiary makes a claim within two years (currently four years) after the death of the insured, the VA is authorized to make a payment to a person the VA deems to be equitably entitled to such benefit. The act also modifies the beneficiary designation process under NSLI and USGLI. Specifically, if a person does not designate a beneficiary for insurance, or if the designated beneficiary predeceases the insured person, the VA must determine the beneficiary in a specified order of succession. Additionally, the act requires the VA to improve its processes and procedures with respect to identifying, locating, and paying hard-to-find beneficiaries of life insurance policies, including by improving its website search tools.
Sponsors: Rep. Pappas, Chris [D-NH-1]
Target Audience
Population: Beneficiaries of veterans' life insurance policies
Estimated Size: 20000000
- The bill impacts beneficiaries of veterans' life insurance policies managed by the VA, specifically under the National Service Life Insurance and United States Government Life Insurance programs.
- These programs have historically included millions of veterans and their survivors as potential beneficiaries.
- As of 2021, there are approximately 19 million U.S. veterans, many of whom have or had policies under the NSLI or USGLI during their lifetime.
- The bill primarily impacts individuals in the event of the insured's death and modifies how benefits are processed if claims are not made within specific time frames.
- Potentially affected individuals include unclaimed beneficiaries, those who are hard to locate, and equitable claimants not previously considered for benefits.
Reasoning
- The policy affects a wide range of beneficiaries associated with veterans' life insurance policies. It is likely to mainly benefit those who experience delays or issues with current claims processes.
- Many potential beneficiaries may not be aware they are entitled to claims, especially if they are hard to find or if their relationships to the policyholder are complex or not documented traditionally.
- The policy aims to streamline and expedite the process, reducing typical claim times and increasing the likelihood that the funds reach beneficiaries who were previously overlooked.
- The majority of the impact is on the efficiency and effectiveness of payments, rather than altering the overall amounts awarded to beneficiaries.
- Given that the policy requires the VA to spend $218 million over ten years with an initial budget of $20 million in the first year, the policy aims to significantly enhance the speed and clarity of benefit payout processes.
- The population of veterans and their families is quite large, but a specific focus on those not currently represented in beneficiary claims suggests this policy primarily serves a smaller segment of survivors and unaffiliated but deserving claimants.
Simulated Interviews
Retired (Kansas City, MO)
Age: 68 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- This policy could definitely help widows like me who might have been stuck waiting for beneficiary payments due to paperwork delays.
- The streamlined process sounds like it will be a relief for those who cannot afford long wait times for life insurance payouts.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 5 |
Veteran (Phoenix, AZ)
Age: 75 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 20.0 years
Commonness: 7/20
Statement of Opinion:
- This adjustment to how unclaimed benefits are handled is crucial. Many fellow veterans don't want their estates tied up after passing.
- It provides peace of mind knowing the VA has a process for these situations.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Lawyer (Brooklyn, NY)
Age: 45 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- I was unaware of my potential to claim benefits, so the policy raising awareness and improving VA outreach is a positive step.
- The policy encourages better knowledge of entitlements among veterans' families.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 6 | 4 |
| Year 5 | 6 | 4 |
| Year 10 | 5 | 4 |
| Year 20 | 4 | 4 |
Insurance Agent (Miami, FL)
Age: 54 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 10.0 years
Commonness: 6/20
Statement of Opinion:
- From a professional point of view, simplifying the payment process is beneficial for the families I work with.
- There might be challenges at first during the transition, but it should eventually reduce administrative delays.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 9 | 8 |
| Year 3 | 9 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Software Developer (Seattle, WA)
Age: 30 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 2.0 years
Commonness: 9/20
Statement of Opinion:
- Although my family isn't currently using these services, it's reassuring to know such policies exist for veterans' survivors.
- It's great that they are improving the website; accessibility matters to tech-savvy generations.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Veteran Services Officer (Raleigh, NC)
Age: 62 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- I support changes that make it easier for rightful beneficiaries to receive their due benefits, especially for those who are unaware or difficult to contact.
- It seems like this policy can prevent unnecessary legal battles over insurance claims.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 5 | 5 |
Teacher (Nashville, TN)
Age: 52 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 6/20
Statement of Opinion:
- Had this policy been in place earlier, my family might have received benefits more swiftly.
- It's promising that they're improving how they track and pay hard-to-find beneficiaries.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Retired Marine (Los Angeles, CA)
Age: 70 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 8.0 years
Commonness: 8/20
Statement of Opinion:
- Knowing that my family would be prioritized sooner in the event of delays gives me peace of mind.
- This policy helps all veterans' families avoid prolonged waits for claims that should be straightforward.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Nurse (Ret.) (Chicago, IL)
Age: 84 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 3.0 years
Commonness: 7/20
Statement of Opinion:
- The improvements could have helped avoid some of the difficulties I've faced due to complicated claims processes in the past.
- Knowing there are now steps in place to help people like me is reassuring.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
IT Specialist (Austin, TX)
Age: 40 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 9/20
Statement of Opinion:
- The streamlined processes are a smart choice. Many systems can be too cumbersome, and this kind of efficiency is needed.
- Particularly in tech, quick updates and streamlined interfaces make a big difference.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Cost Estimates
Year 1: $20000000 (Low: $15000000, High: $25000000)
Year 2: $20500000 (Low: $16000000, High: $26000000)
Year 3: $21000000 (Low: $17000000, High: $27000000)
Year 5: $22000000 (Low: $18000000, High: $28000000)
Year 10: $23000000 (Low: $19000000, High: $29000000)
Year 100: $30000000 (Low: $25000000, High: $35000000)
Key Considerations
- Administrative enhancements are necessary for successful implementation and may incur significant upfront costs.
- The full effect on veterans' families depends on VA's execution of improved processes and technology.
- Long-term cost savings anticipated through streamlined procedures and technology investments.