Types of Disability Compensation for Veterans

Applying for VA disability compensation can be, for some veterans, one of the most important parts of the transition from military life to a civilian career. The most common form of disability compensation is VA disability pay, in which a Veteran receives a disability rating of at least 10% for an injury or illness caused or aggravated by their military service. 

But VA disability pay isn’t the only benefit available for Veterans living with a disability. Let’s go over what other benefits are available for servicemembers who leave service with injuries or illnesses. 

Types Of Disability Compensation

The following table outlines the different types of programs available for Veterans living with a disability:

• VA compensation for service-connected medical issues
• VA Medical Benefits
• VA housing grants to adapt residences
• VA Pension
• VA Travel Reimbursement
• Veteran Readiness and Employment (VR&E)
• Medicaid
• Federal Hiring Preference
• Social Security Disability (SSI and SSDI)
• State benefits including disability benefit payments (depending on the state)

Variety of Benefits Available for Disabled Veterans

There also additional benefits that don’t come in the form of payments to disabled Veterans, but their disability rating allows them financial exemptions:

• VA loan funding fee exemptions
• Possible property taxes exemption

Types Of VA Disability Compensation

The VA’s disability pay program offers tax-free benefits to veterans with qualifying service-connected medical conditions. As mentioned above, it is the most well-known disability benefit offered by the VA, but others include:

• Dependency and Indemnity Compensation (DIC): A tax-free benefit intended for the surviving spouse and dependent children of a military member who died as a result of military service, as well as those who died from service-connected disabilities.
• Parental Dependency and Indemnity Compensation: Beyond the standard “DIC”, you can apply for Parent’s DIC for benefits for surviving parents who were dependents of the servicemember or Veteran who passed away. Note: Those who have applied for DIC in the past and were denied may have a second chance for benefits. This is due to the passage of the Blue Water Navy Vietnam Veterans Act of 2019.
• Special Monthly Compensation (SMC): Is an additional tax-free benefit that can be paid to Veterans, spouses, surviving dependents and parents. Oftentimes SMC is awarded to those who have needs beyond the permanent total disability rating of 100%. In some situations, it’s where their needs include aid and attendance by another person. In others, it’s because of a specific disability, “such as loss of use of one hand or leg.”
• Concurrent Retirement and Disability Pay (CRDP) & Combat-Related Special Compensation (CRSC): Both programs allow you to receive full military retirement pay and full VA disability pay, avoiding the VA offset. 

“Special Circumstance” Compensation

Once the VA has made a determination on an individual veteran’s case, additional disability pay may be authorized depending on the condition. “Special Circumstance” VA disability programs include:

• Individual Unemployability: If your service-connected conditions prevent you from maintaining gainful employment, you may qualify for compensation at the 100% disability rate—even if your combined rating is lower. This benefit helps bridge the gap for Veterans unable to work due to their disabilities.
• Automobile Allowance: If you have a service-connected disability that affects your mobility, you may qualify for a one-time payment to help buy a specially equipped vehicle.
• Clothing Allowance: If your service-connected condition causes you to wear or tear your clothing due to prosthetics or prescribed medical devices, you may receive an annual payment to cover those expenses.
• Prestabilization Rating: If you’re newly discharged with a serious, unstable service-connected condition, the VA may assign a temporary disability rating to ensure immediate compensation.
• Hospitalization Rating: If you’re hospitalized for over 21 days for a service-connected condition, you may qualify for a temporary 100% disability rating during your stay.
• Convalescence, Dental, and Birth Defects: You may be eligible for temporary 100% ratings during recovery from surgery or serious treatment, certain dental benefits for service-related conditions, and support for specific birth defects linked to parental Vietnam or Gulf War service.

Final Point

In all cases, the VA has the final say in the amount of duration of compensation. Laws and program guidelines are subject to change due to legislation, funding, mission requirements, and other variables. It’s not safe to assume that yesterday’s benefits are the same as today; you may be entitled to more, the qualifying criteria may be raised or lowered, etc. It’s best to call the VA or talk with a VSO about the most current options open to you.