(A) The payment referred to in paragraph (1) of this subsection shall be made to the person or persons first listed below who is surviving on the date of such individuals death:
(i) The beneficiary or beneficiaries designated by such individual under the individuals Servicemembers Group Life Insurance policy.
(ii) The surviving spouse of the individual.
(iii) The surviving child or children of the individual, in equal shares.
(iv) The surviving parent or parents of the individual, in equal shares.