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A widow or widower age 60 or older (age 50 or older if they have a disability). A surviving divorced spouse, under certain circumstances. A widow or widower at any age who is caring for the deceaseds child who is under age 16 or has a disability and receiving childs benefits.
A lump sum payment This is the most popular option, and the default choice: you get a large amount of cash, to do with as you please. You can use the lump sum to pay off the mortgage, use it to live on, invest it, buy a new car, take a vacation, or whatever else you want.
Only the widow, widower or child of a Social Security beneficiary can collect the $255 death benefit, also known as a lump-sum death payment. Priority goes to a surviving spouse if any of the following apply: The widow or widower was living with the deceased at the time of death.
Do we pay death benefits? A one-time lump-sum death payment of $255 can be paid to the surviving spouse if they were living with the deceased. If living apart, they were receiving certain Social Security benefits on the deceaseds record.
If an estate exists, the executor named in the will or the administrator named by the Court to administer the estate applies for the death benefit. The executor should apply for the benefit within 60 days of the date of death.
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Your beneficiaries will receive a single payment that includes the entire death benefit. Specific income payout. In this scenario, the death benefit will be placed by the insurer into an interest-bearing account, and beneficiaries receive monthly or annual payments of an amount they choose.
Widows and widowers These benefits are payable for life unless the spouse begins collecting a retirement benefit that is greater than the survivor benefit. Beneficiaries entitled to two types of Social Security payments receive the higher of the two amounts.
Beneficiaries can use the money any way they want There are no stipulations or conditions on benefit payouts. You can take the lump sum and use it for living expenses if you need, but you can also use it for any other purpose, from education to retirement savings or even going on vacation.
Legal Definition death benefit. noun. : money payable to the beneficiary of a deceased as a benefit (as under a policy of life or accident insurance or a pension plan)
Death benefit payout options Every year, the beneficiary receives a portion of the death benefit plus the interest it earns until the money runs out. Lump sum: The most common option is to receive the death benefit in one lump sum.

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