What Happens to Your Social Security Benefit When Your Spouse Dies?

The Motley Fool ^ | Trevor Jennewine

[where's_the_Outrage?]

Social Security benefits are the major source of income for most people over age 65, according to the Social Security Administration. That means living standards in later life can depend heavily on how well retired workers and spouses understand the program.

Unfortunately, misunderstandings are all too common. A recent survey from Nationwide Retirement Institute found that 44% of adults were unaware that, upon the death of a spouse, the surviving spouse would inherit the bigger Social Security benefit.

Social Security old-age and survivor benefits is a broad term that includes two subcategories: retired-worker benefits, and benefits for spouses and other family members. They share certain things in common. For instance, eligibility begins at age 62 in both cases. But there are important differences married couples should understand.........

When a married person dies while receiving Social Security retirement benefits, the surviving spouse is eligible for survivors benefits if he or she satisfies certain conditions. The most common qualifications are as follows:

The surviving spouse must be at least 60 years old (or 50 years old with a disability).

The surviving spouse must not remarry before age 60 (or age 50 with a disability).

The Social Security Administration must be notified when a beneficiary dies. In most cases, the funeral home will handle the reporting, but the surviving spouse can also report the event by contacting the local Social Security office. Once that's done, the surviving spouse can begin receiving a survivors benefit in place of his or her current benefit.

[tinamina]

Whole life premiums don’t go up it’s the term life premiums that become unaffordable. But you have to buy when you’re younger that’s true.

[gloryblaze]

Why shout something from the rooftops which is blatantly stupid?!?

Don't.

But the suggestion to buy life insurance when one begins working, which is when one starts paying SS taxes, is not blatantly stupid. One can't opt out of SS just because he buys a fat insurance policy, but one should definitely buy insurance.

[the_Watchman]

You misconstrue my objection.

“Life insurance will give her more benefits than Social Security, ever would”

That was the statement which was to be shouted from the rooftops. You ASSUME it has something to do with when a person begins paying SSA.

You are right. Having insurance coverage when you are first starting out can be important. This can be very important when children are involved. Again, this has little to do with the above quotation.

[SamAdams76]

Social Security is the biggest Ponzi scheme on the face of the earth

They've been saying that since 1933!

I take it you opted out then?

[gloryblaze]

You misconstrue my objection. “Life insurance will give her more benefits than Social Security, ever would”

That was the statement which was to be shouted from the rooftops. You ASSUME it has something to do with when a person begins paying SSA.

You are right. Having insurance coverage when you are first starting out can be important. This can be very important when children are involved. Again, this has little to do with the above quotation.

The direction of the discussion was the best situation for a surviving spouse. My point is that a few extra dollars via SS per month is small potatoes compared to a large, fast, tax free sum. My family has lived this situation.