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What is the difference between VA compensation and pension?

We often hear C&P thrown around by the Department of Veterans Affairs but what does it mean?  C&P stands for compensation and pension.

VA Compensation is financial assistance for service-related disabilities.  If you are seeking compensation benefits you do not need to be totally disabled or be poor.  Generally speaking, the only thing you need to prove is that you incurred some sort of disability as a result of your military service.

VA Pension, however, is a need-based program.  To be eligible for a VA pension, you must show that:  (1) you had wartime service; (2) your wartime service concluded with an other than dishonorable discharge; (3) you are permanently and totally disabled; (4) you have a demonstrated financial need; (5) you have either 24 months of active duty service or the “full period for which [you were] called or ordered to active duty; and (6) you have active service that includes a total of ninety days during one or more periods of war or at least one day of wartime service that results in a discharge for a service-connected disability.

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