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When you think of Social Security, you probably think of retirement. However, Social Security can also provide much-needed income to your family members when you die, making their financial lives easier.

Your family may be entitled to receive survivor’s benefits based on your work record

When you die, certain members of your family may be eligible to receive survivor’s benefits if you worked, paid Social Security taxes, and earned enough work credits. The number of credits you need depends on your age when you die. The younger you are when you die, the fewer credits you’ll need for survivor’s benefits. However, no one needs more than 40 credits (10 years of work) to be “fully insured” for benefits. Under a special rule, you’re only “currently insured” at the time of your death. Your children and your spouse who is caring for them can still receive benefits.

Survivor’s benefits may be paid to:

  • Your spouse age 60 or older (50 or older if disabled)
  • Your spouse at any age, if caring for your child who is under age 16 or disabled
  • Your ex-spouse age 60 or over (50 or older if disabled) who was married to you for at least 10 years
  • Your ex-spouse at any age, if caring for your child who is under age 16 or disabled
  • Your unmarried children under 18
  • Your unmarried children under 19, if attending school full time (up to grade 12)
  • Your dependent parents age 62 or older

This is a general overview–the rules are more complex.

How much will your survivors receive?

An eligible family member will receive a monthly survivor’s benefit based on your average lifetime earnings. The higher your earnings, the higher the benefit. This monthly benefit is equal to a percentage of your basic Social Security benefit. The percentage depends on your survivor’s age and relationship to you.

For example, at full retirement age or older, your spouse may receive a survivor’s benefit equal to 100 percent of your basic Social Security benefit. However, if your spouse has not yet reached full retirement age at the time of your death, he or she will receive a reduced benefit, generally 71 to 94 percent of your basic benefit. Your dependent child may also receive 75 percent of your basic benefit.

Benefit rate cap

A maximum family benefit rate caps the total amount of money your survivors can get each month. The total benefit your family can receive based on your earnings record is about 150 to 180 percent of your basic benefit amount. If a total family benefit exceeds this limit, each family member’s benefit will be reduced proportionately.

You can get an estimate of how much your survivors might be eligible to receive by filling out a request form at your local Social Security office or by visiting the SSA website. Also, you can find this information on your Social Security Statement, which the SSA mails annually to every worker over age 25. You will receive this statement about three months before your birthday.

Don’t forget the lump-sum benefit

If you’ve accumulated enough work credits, your spouse may receive a lump-sum benefit of $255. Your spouse must have been living with you at the time of your death or have been receiving benefits based on your earnings record if living apart from you. However, if you’re not married at the time of your death, the death benefit may be split among any children you have who are eligible for benefits based on your earnings record.

If a loved one has died, contact the Social Security Administration immediately

If a loved one has died and you are eligible for survivor’s benefits, you should contact the SSA right away. But, if you’re already receiving benefits based on your spouse’s earnings record, the SSA will change your payments to survivor’s benefits. But if you’re not yet receiving any Social Security benefits or if you’re receiving benefits based on your own earnings record, you’ll have to fill out an application for survivor’s benefits.

It’s helpful to have the following documents when you apply, but if you don’t have all the information required, the SSA can help you get it:

  • Proof of death (a death certificate or funeral home notice)
  • Your Social Security number, as well as the deceased worker’s number
  • Your marriage certificate, if you’re a widow or widower
  • Dependent children’s Social Security numbers, if available
  • Deceased worker’s W-2 forms, or federal self-employment tax return, for the most recent year
  • The name of your bank, as well as your account numbers, for direct deposit
  • Your birth certificate
  • Your divorce papers, if applicable

Visit your local SSA office or call (800) 772-1213 for more information on survivor’s benefits and how to apply for them.

Disclosure:The content provided in this publication is for informational purposes only. Nothing stated is to be construed as financial or legal advice. Sterling Group United recommends that you seek the advice of a qualified financial, tax, legal, or other professional if you have questions.