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Finance Issues

The following information is presented to assist you in planning for, or dealing with, one of life's most unpleasant times.


All allotments to include pay and allowances are discontinued on the date of the member's death. Personal financial obligations paid by allotment should be changed immediately. Your CACO will be able to obtain this information for you and assist in making any necessary changes.


Inquiries regarding savings bonds that a member has purchased through payroll deduction should be directed to:

Defense Finance and Accounting Service
Allotment Division
1500 East 95th Street
Kansas City, MO 64197-0001

General Insurance Information

Proceeds from life insurance policies are generally not taxable unless they are invested in property. With certain exceptions, such proceeds are likewise not subject to claims, liens, levy or seizure by the United States either before or after receipt by the beneficiary.

Commercial insurance companies must also be notified of the death by letter, telephone or contact with a local agent. A copy of the DD Form 1300 will be directly to any insurance company upon receipt of a written request from that insurance company, or the next of kin.

Home Loans

Survivors of deceased Members may be entitled to a VA Home Loan Guaranty. Additional information may be obtained from the nearest VA Regional Office.


The nearest office of the Internal Revenue Service (IRS) should be contacted for information and guidance regarding the survivor's federal tax status. Excluded from gross income for income tax purposes are: Social Security benefits; $3,000 of the death gratuity payment; burial benefits; VA pension and compensation payments; property; and the face amount of all life insurance policies.

Assistance with filing income taxes is available at most military installations during tax season. In most cases, services are free of charge.

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