Means test factors in
total income, family size

Answer: VA considers your previous year's total household income (both earned and unearned income) for you, your spouse and dependent children. Earned income is usually wages you receive from working. Unearned income can be interest earned, dividends received, money from retirement funds, Social Security payments, annuities or earnings from other assets. The number of people in your family will be factored into the calculation to determine the applicable income threshold -- both the VA national income threshold and the income threshold for your geographic region. For further information on the means test, contact the VA at 433-0600.

Q: Recently, I heard that VA was paying more than $500 million in insurance dividends. I thought stories about these dividends were a hoax.

A: During 2004, VA distributed about $517 million in insurance dividends to 1.5 million veterans who served between 1917 and 1956. Over the next year, veterans will receive payments on the anniversary date of their policies, with the specific dividend amount varying according to age, type of insurance, and length of time the policy has been in force. Veterans will automatically receive their annual dividend through one of the nine payment options available to them. Dividends cover only veterans with government life insurance policies who served between 1917 and 1956. Veterans who were discharged after 1956 are covered by VA term insurance programs that do not pay dividends.

A long-standing hoax alleges that Congress has passed a law giving dividends to veterans who did not keep up their premium after leaving the military or who first served after 1956. Sometimes veterans are asked to pay fees to see if they qualify for a dividend. No fees are required by VA. Information about dividends is on the Internet at www.insurance.va.gov or call (800) 669-8477.