Every person making application for compensation shall set forth in the application the names and addresses of all persons who, under this act, would be entitled to receive compensation in the event of the death of the applicant. If the applicant dies before the payment of the compensation, the application shall be deemed to inure to the benefit of the person next entitled to compensation, and payment shall be made to the person upon proof of identity satisfactory to the Adjutant General. If no person designated in this act as being entitled to compensation survives the veteran, the right to the compensation shall cease.