An often missed benefit of Social Security is it’s survivor benefits provision for folks with children. It may not get missed in the unfortunate event of a spouse passing away, but it is frequently missed when calculating how much life insurance coverage you think you need, and could result in purchasing a life insurance policy for more than you need.
Now if the unthinkable happens, it’s obviously good to have more coverage and benefits, but if an unexpected death doesn’t happen and your term life insurance expires – the extra policy premium on that higher death benefit amount may have been wasted on having too much coverage.
Eligible recipients are:
1 – A widow or widower at any age who is caring for the deceased’s child who is under age 16 or disabled and receiving benefits on record
2 – An unmarried child of the deceased who is:
A – Younger than 18 (or up to 19 if he or she is a full-time student in an elementary or secondary school) or:
B – Age 18 or older with a disability that began before age 22.
So if the child is under age 16, the surviving spouse can qualify for a monthly payment AND each child can also get a monthly payment up to the age of 18 (or 19), plus certain disability provisions. There is a maximum amount per family which is generally reached if you have 2 or more children.
To find out your estimated coverage, login to your account at SSA.gov. Once logged in, click on “View Estimated Benefits” and you’ll see “Survivor Benefits” about halfway down the page. While you’re in there take a look at your other estimates too!
Obviously these survivor payments do not last forever and you may have additional life insurance coverage needs on top of what these payments could cover, but they are certainly a piece of the puzzle for most folks with children and could drastically reduce the amount of Life Insurance death benefit coverage you need to apply for.
Call me if you have any life insurance questions and I’d be happy to help!
This is meant for educational purposes only. The information is based on data gathered from what we believe are reliable sources. It is not guaranteed by LPL Financial as to the accuracy and is not intended to be used as the basis for any financial decisions. Please consult your financial advisor before making financial decisions.