Many people who receive Social Security Disability Insurance (SSDI) benefits have family members who depend on them. This is why the Social Security Administration (SSA) makes sure to financially assist those people, even in the face of unfortunate events like death.
In the case of a beneficiary’s death, the SSA provides a lump sum death payment, also known as an LSDP, totaling up to $255. This amount is usually given to the widow or widower, or child of the SSDI beneficiary.
Keep reading below as we provide more details about the LSDP program.
SSDI vs. SSI
There are two types of federal disability assistance programs:
Suppose you are an adult who has worked but is now disabled and unable to support yourself financially. In that case, you may be eligible for Social Security Disability Insurance, a federal disability income program.
The Supplemental Security Income (SSI) program is a federally funded assistance program for disabled individuals and children who are low-income and have a limited amount of other resources. It’s meant to assist the elderly, the blind, and the disabled who are living on a strict budget by providing them with the money they need to buy food, clothing, and a roof over their heads.
Does SSDI Have Any Death Benefits?
Yes, the SSDI does provide death benefits, also known as Lump Sum Death Payment (LSDP).
The U.S. government funds and oversees the SSA’s LSDP program for Social Security beneficiaries who have passed away. A surviving spouse or child may receive a special lump-sum death payment of $255 if certain conditions are met.
The Death Benefit is payable to a single beneficiary only. In the case of multiple qualified beneficiaries, such as multiple eligible Children, the $255 lump sum would be divided equally among them.
Since the program was first implemented, the honor guard burial ceremony folding the American flag fee has remained at its present level of $255, and the cost has not been adjusted to account for inflation.
You can submit your application by phoning the Social Security Administration at 1-800-772-1213 (TTY 1-800-325-0778) or by going in person to the Social Security office in your area. It is not necessary to make an appointment; however, doing so may shorten the amount of time you have to wait in line to submit your application if you phone ahead and book the appointment.
Your family members may receive survivor benefits if you die. If you are working and paying into Social Security, some of those taxes you pay are for survivors’ benefits. Your spouse, children, and parents could be eligible for benefits based on your earnings.
You may receive survivor benefits when a family member dies. You and your family could be eligible for benefits based on the earnings of a worker who died. The deceased person must have worked long enough to qualify for benefits.
Who Can Receive the Death Benefits?
The $255 death benefit, commonly known as a lump-sum death payment, can only be collected by the beneficiary’s widow, widower, or child. No other family members are eligible for this payment. If any of the following circumstances are met, the surviving spouse will be given priority:
- The deceased person’s widow or widower had been residing with him or her at the time of death.
- This person was no longer living with the deceased, but was still receiving spousal benefits based on the deceased’s salary.
- He or she was not cohabitating with the deceased but is nonetheless entitled to survivor benefits.
If there is no surviving spouse to receive benefits, the lump sum may be given to an unmarried child who is under the age of 18, a high school student who is 18 or 19 years old, or a disabled adult child who is at least the age of 22.
Suppose the surviving spouse or child was already receiving family benefits based on the deceased person’s record. In that case, the death benefit will normally be paid to them immediately once the death has been reported to Social Security.
If that’s not the case, the beneficiary has only two years from the date of death to file a claim for the death benefit.
The late beneficiary’s birth and death certificates, among other things, may be required. Social Security Form SSA-8 asks potential beneficiaries about the dead person’s family, finances, and Social Security benefits.
No death benefit is paid if there is no surviving spouse or dependent child.
Survivor Benefits Vs. Death Benefits
It is important to differentiate between the death benefit, which is a one-time payment, and survivor benefits, which are ongoing payments granted to the surviving spouse, ex-spouse, children, or, in very unusual cases, the parents of the deceased.
Who Can Receive Survivor Benefits?
When an employee becomes disabled and unable to work, the Social Security Administration steps in to help financially by paying them disability benefits. The money from these benefits can be used to pay for things like medical treatment and basic necessities.
When a person receiving disability payments dies, their dependents may still be eligible for financial support if they meet certain requirements. This includes a spouse or children.
Widow/Widower
Depending on the specifics of the deceased worker’s claim for disability, a surviving spouse may be eligible for survivor’s payments in the event of death.
When they attain their full retirement age, they are eligible for the maximum amount of benefits. Depending on the year they were born, this may be anywhere from 65 to 67. To determine the exact retirement age, please see below.
- 1937: 65 years
- 1938: 65 years, 2 months
- 1939: 65 years, 4 months
- 1940: 65 years, 6 months
- 1941: 65 years, 8 months
- 1942: 65 years, 10 months
- 1943 to 1954: 66 years
- 1955: 66 years, 2 months
- 1956: 66 years, 4 months
- 1957: 66 years, 6 months
- 1958: 66 years, 8 months
- 1959: 66 years, 10 months
- 1960 and later: 67 years
At the age of sixty, if you are a widow or widower, you are eligible to receive a portion of the survivor’s payments.
The amount of benefits you receive will be decreased by a certain percentage for every month that passes before you reach the age at which you are eligible for full retirement benefits.
You are eligible for full payments beginning at the age of 50 if you are also disabled and have been for at least seven years prior to the death of your late beneficiary spouse.
Keep in mind that the Social Security Administration will have to evaluate your disability just like they did with the primary worker’s application.
Former Spouse
If you were married to the deceased worker for at least 10 years before the divorce, you are still entitled to survivor’s benefits even if the divorce occurred before the worker’s death. The same requirements that apply to a present spouse also apply here.
Children
Children of a deceased worker are only eligible for survivor’s payments if they are unmarried and under the age of 18, or 19 if they are enrolled in a recognized secondary school. No matter how old you are, you are still entitled to survivor’s payments if you become incapacitated before the age of 22 and remain so.
Parents
It’s possible that the dead worker’s parents could collect disability benefits as well. You must be over the age of 62 and have had to rely on the worker for more than half of your living expenses prior to their death in order to qualify.
Miscellaneous
There are various requirements that must be met before a deceased worker’s stepchildren, adoptive children, or grandkids can receive survivor’s benefits.
Conclusion
The LSDP program is great for making sure that the deceased worker’s family members are protected in the face of unfortunate circumstances. It is valid for up to 2 years after the SSDI beneficiary’s passing. SSDI survivors’ benefits also include an ongoing monthly payment to surviving spouses or another eligible family member. The amount of these benefits is based on the worker’s work history.
