Many people are aware with Social Security when it relates to retirement. However, Social Security benefits aren’t limited to seniors. Survivors’ benefits may be paid if you die while working and paying taxes into Social Security. You receive credits toward future payments you may receive through Social Security by working and paying taxes into the system. If you die, your family might be eligible for survivors’ compensation, which is a type of aid administered by the government.
If you qualify for both Social Security and Medicare, your survivors benefits will be based on the higher amount. Your surviving children and spouse up to a certain age are generally eligible for some Social Security income in the event of your death.
Given this, you may believe that buying life insurance is not necessary. After all, if SS will look after your family in your absence, why should you pay those premiums on life insurance? While Social Security survivors benefits might help your family stay afloat if you die, they should not be viewed as a substitute for an individual policy you may have taken out.
Give your family the protection they need
If you die at a young age while not earning much money, your loved ones may not receive a lot of money in the form of SS survivors benefits. That’s enough reason to get a life insurance policy on its own.
You should also be aware that SS survivors’ benefits are paid out in installments on a monthly basis. That’s excellent because if you pass away, your loved ones may require continuing access to money.
Social Security, on the other hand, will not pay out a large lump sum payment like many life insurance policies do. In reality, if you die, Social Security will just give you a one-time $225 payment if your children and spouse fulfill specific requirements.
That $225 payment will not come close to covering the funeral expenses of your loved one. After all, the avg. casket alone could cost over $2,000, families may easily end up with a bill in the tens of thousands.
It’s also important to note that if you don’t have enough money set aside, any benefits paid out to your spouse may not be sufficient to cover your mortgage and other obligations. The Social Security survivors payments they receive might not be enough to help keep up with these expenses if you die without purchasing life insurance.
Consider putting life insurance in place to safeguard your family in the case of your untimely death, just as employees are urged to save for their retirement and not depend solely on Social Security benefits for income during their golden years. While survivors’ benefits from Social Security may be beneficial, they may fall short, which would leave your family vulnerable to a large financial gap that life insurance can assist them avoid.
Life Insurance Coverage for You and Your Family
Life insurance, unlike many other types of insurance coverage, is designed to help safeguard a person’s assets and family. Life insurance may help protect the people who rely on you if you die prematurely. Choosing the appropriate life insurance policy is crucial to guarantee that your family is properly covered. We’ve gone through all of the choices so that you can make an informed decision when it comes time to select life insurance policies.
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