Not all veterans automatically receive a financial death benefit or payout unless they actively enrolled in a specific life insurance policy (such as VGLI or VALife) or died from a service-connected condition qualifying their survivors for VA Dependency and Indemnity Compensation (DIC). However, all eligible honorably discharged veterans are entitled to a free VA burial benefit, which includes a gravesite in a national cemetery, opening and closing of the grave, a government headstone, and a burial flag.
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