Social Security offers numerous benefits, but many people remain ignorant of what is available. For a program that’s been around for 90 years, a lot of confusion reigns over it.

Much of the problem is due to constantly changing rules and the fact the benefits are not straightforward. They can differ based on how long you worked, how much you made, the age you take benefits, and more. It’s not as simple as you retire, you receive a benefit.

No wonder many people just ignore it and figure they will sort Social Security out when they have to.

However, that could be too late as many retirement strategies for using Social Security should be deployed years in advance of actually needing them. Still, quite a few people are unaware of many of the benefits available, including one of its most important features: survivor benefits.

24/7 Wall St. Insights:

• Social Security has been around for almost a century, but many people are unaware of or are confused by the benefits from the program that may be available.
• One of the most important benefits is survivor benefits, which could be more valuable than the life insurance policy covering the individual.
• There are conditions and limitations on who can collect and how much, so it is important that everyone be knowledgable about what they could be eligible for.

Surviving the death of a spouse

When you die, those closest to you, such as your wife or dependent children, may be entitled to receive benefits on your behalf depending upon if you worked and paid into the system. But a survey by Nationwide Financial of 1,831 adults discovered that 30% of all respondents were not aware Social Security offered survivor benefits. Naturally, there are conditions, but the loss of a family’s wage earner can be emotionally and financially devastating and survivor benefits can help ease the pain of your passing.

Social Security is mostly thought of as a retirement program, but the benefits available are likely larger than the value of your life insurance policy. It’s why this key feature of the program should be known by everyone. Here is who is eligible for survivor benefits.

Spouses and ex-spouses

Your surviving spouse could get your full benefits at full retirement age, typically 66 or 67, depending upon when born. They could get benefits at any age if they are caring for a disabled child receiving benefits.

So long as you two were married for nine months before your death, and your wife didn’t remarry before age 60, she may be eligible.

Spouses may also be entitled to receive a $255 one-time, lump-sum payment, but only if they meet certain criteria. The lump-sum payment must be applied for within two years of your death.

An ex-spouse can also claim survivor benefits if you were married for at least 10 years. They can also claim it at any age or have been married to you for any particular length of time if they care for your child who is under 16 years of age or is disabled.

Moreover, the survivor benefits your ex-spouse receives does not affect the benefits of anyone else, such as your current spouse or child.

Children

Dependent children can also receive survivor benefits if they are 17 or younger (or 18 or 19 if they are still in high school) and are unmarried.

Also, disabled children of any age could be eligible for benefits if their disability developed before they turned 21.

Under certain circumstances, benefits may also be paid to children who are married, stepchildren, adopted children, grandchildren, and even stepgrandchildren.

It should be noted children may also be eligible for the $255 lump-sum payment if they meet certain requirements.

Dependent parents

Your parents may also be eligible for survivor benefits if they are 62 or older and relied upon you financially for at least half of their support.

Limitations on amounts paid

The amount of the benefit anyone receives from Social Security will depend upon the earnings the person made during their lifetime, so it will be different for everyone.

The surviving spouse, however, will receive 100% of your benefit if they are at full retirement age or older. If they are 60 years or older, but not at full retirement age, they will receive between 71% and 99% of the basic benefit amount.

The spouse at any age with a dependent child under 16 will receive 75% of the benefit. An eligible child can receive 75% of the benefit, but Social Security is limited to paying out a total of between 150% and 180% of the deceased worker’s benefit amount.

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