Don’t Overlook the Value of Social Security Survivor Benefits
Life insurance might play a central role in helping to protect your family’s financial future. But did you know that another important source of income for your survivors could be Social Security?
If you earned enough work credits by paying Social Security payroll taxes, certain family members may be eligible to receive Social Security survivor benefits based on your record. Family members who might qualify include:
- Your spouse or former spouse who is age 60 or older (50 or older if disabled)
- Your spouse or former spouse at any age, if caring for your child who is under age 16 or disabled
- Your unmarried children under age 18 (19 if attending K-12 school full time, or any age if disabled before age 22)
- Your dependent parents age 62 or older
The number of work credits you need depends on your age when you die. The younger you are, the fewer credits you’ll need for survivor benefits, but no one needs more than 40 credits (10 years of work). Under a special rule, your children and your spouse caring for your children can get benefits if you have at least six credits (one-and-a-half years of work) in the three years before your death.
This is a general overview — the rules are more complex. For more information on eligibility requirements, contact the Social Security Administration at (800) 772-1213.
How much will your survivors receive? An eligible family member will receive a monthly survivor benefit based on your average lifetime earnings. The higher your earnings, the higher the benefit. This benefit is equal to a percentage of your basic Social Security benefit and depends on your survivor’s age and relationship to you.
For example, at full retirement age (FRA) or older, your spouse may receive a survivor benefit equal to 100% of your basic Social Security benefit. However, a spouse who has not yet reached FRA at the time of your death will receive a reduced benefit, generally 71.5% to 99% of your basic benefit (75% if your spouse of any age is caring for a child under age 16).
Your dependent child may also receive 75% of your basic benefit. However, the total amount of money that can be paid to your family each month is generally limited to about 150% to 180% of your basic benefit.
You can find out more about future Social Security benefits by signing up for a my Social Security account at the Social Security website, ssa.gov; this allows you to view your online Social Security Statement. Your statement contains a detailed record of your earnings, as well as estimates of retirement, survivor, and disability benefits.
The cost and availability of life insurance depend on factors such as age, health, and the type and amount of insurance purchased.