VA’s “slayer” rule prevents life insurance payouts to killers

Proceeds from the Servicemembers Group Life Insurance (SGLI) and Veterans’ Group Life Insurance (VGLI) policies are paid by either the legal standard order of precedence or according to a designation of beneficiary. However, there are circumstances in which the life insurance proceeds shall not be payable.

In a final rule scheduled to be published in the Federal Register on 4.12.2016, the VA is prohibiting who can receive life insurance proceeds for the death of a person insured under the SGLI or VGLI Program.

Life insurance proceeds shall not be paid:

• To a person criminally convicted or determined in a civil proceeding to have intentionally and wrongfully killed the decedent.
  • To family members of the person responsible for the death and who are not related to the decedent by blood, legal adoption, or marriage:
    • Spouse
    • Biological, adopted, or step child;
    • Biological, adoptive, or step parent;
    • Biological, adopted, or step sibling; or
    • Biological, adoptive, or step grandparent or grandchild
  • To a person criminally convicted or determined in a civil proceeding to have assisted or aided the person who intentionally or wrongfully killed the decedent.
    • To family members of the person responsible for assisting or aiding in the death and who are not related to the decedent by blood, legal adoption, or marriage:
      • Spouse
      • Biological, adopted, or step child;
      • Biological, adoptive, or step parent;
      • Biological, adopted, or step sibling; or
      • Biological, adoptive, or step grandparent or grandchild

The VA made the decision to not include domestic partners (either same-sex or opposite-sex) in the definition of “family member”.

The final rule is scheduled to be published in the Federal Register on 4.12.2016 and can be viewed in full at https://federalregister.gov/a/2016-08381. The rule will be effective the same date as publication.

References:

• Veterans Affairs Department, Federal Register Document Number 2016-08381
• 38CFR9.5(e)(2)