Eligible veterans are entitled to receive a Veterans Pension for their military service.
Pensions are given monthly to pensioners upon approval of their application based on their eligibility. However, there are cases of unclaimed benefits, which this article hopes to address.
Veterans are people who have served in all branches of the U.S. Armed Forces and have been discharged from their duties with honour. Veterans are among the most respected people in society due to their service to the country, which merits the privilege attached to their duty.
One of the main eligibility requirements for getting approved for a veteran pension is ensuring your net worth is within the prescribed limit set by the Department of Veterans Affairs.
Net worth is the sum of a family’s income minus its debt and liabilities, which can be affected by your credit score. If you have a debt, deal with it head-on, so you won’t have to face debt collectors. Properties are considered one of the individual’s assets, which is why investing in them will never be a bad choice. If you are in Australia and looking for a property, you can talk to a broker from this site.
If you want to understand Veterans Pension eligibility better, read on. This article covers how net worth affects one’s eligibility, the net worth credit score connection, and added requirements for Veterans Pension.
How Net Worth Affects Your Eligibility
As an applicant for Veterans Pension, your net worth is a vital requirement for eligibility. The Department of Veterans Affairs has set guidelines on a net worth limit, which should be met if one wants to have their pensions approved.
According to the VA website, the net worth limit from December 1, 2021, to November 30, 2022, is $138,489.
Net worth comprises two main factors, the assets and annual income of you and your spouse if you have one. All of this information must be reported to the VA. In cases of children, if their net worth exceeds the VA’s limit, they are no longer considered your dependents when the pension is determined.
Assets are calculated as the fair market value of every property you own minus the mortgages. Assets include “real property,” or land and buildings you own, and your “personal property,” which includes furniture, boats, stocks, and bonds.
Note that assets don’t include your primary residence, car, or basic items you wouldn’t bring when you move. Any mortgages, rentals, or installment payments on your house or car will not be deducted from your declared assets.
Annual income is the money earned in one year. The income may come from a job, annuity, or retirement payments. Everything is added in calculating annual income, including your salary, which is the total amount of money earned without deductions, overtime pay, bonuses, and commissions.
Applicable deductible expenses are then subtracted from the total sum of your asset’s value and annual income to get your net worth.
Applicable deductible expenses are medical bills not reimbursed and educational expenses.
Suppose you’ve calculated your asset and annual income, subtracted the deductibles, and got an amount less than the net worth limit, which is $138,489. If that’s the case, you are eligible for a Veterans Pension.
The Net Worth Credit Score Connection
Now that we understand your net worth, how is your credit score connected to your net worth, pension, and benefits?
A credit score is your creditworthiness score (300 to 850). It means how likely you can pay off a loan on time. A credit score will not dramatically affect your net worth, but with high credit scores, you can get loan options from the VA with great interest rates.
Maintaining good credit scores is important, especially if you want to make the most of your retirement. Make sure to look for a company that can help you get those credit scores you need to have better credit down the line. Such firms can assist you in calculating and evaluating your credit and repayment history and advise you on improving those scores.
Added Requirements for Veterans Pension
Aside from the net worth limit, here are other requirements to qualify for Veterans Pension.
Both must be true:
- You didn’t get a dishonorable discharge.
- Your net worth is within limits placed by Congress.
At least one must be true concerning your service in the military:
- You started active duty before September 8, 1980, and served on active duty for at least 90 days, with one day at least, during wartime.
- You started active duty after September 7, 1980, as an enlisted person and served 24 months. For the entire period, you are called or ordered to active duty, with one day at least during wartime.
- You were an officer and started active duty after October 16, 1981, and hadn’t previously served at least 24 months on active duty.
Lastly, one of these must be true:
- You’re at least 65 years old.
- You have a permanent and total disability.
- You’re a nursing home patient for long-term care due to disability.
- You’re receiving Social Security Disability Insurance or Supplemental Security Income.