Social Security: The Lump-Sum Death Benefit (CRS Report for Congress)
| Release Date |
Revised Oct. 9, 2024 |
| Report Number |
R43637 |
| Report Type |
Report |
| Authors |
Zhe Li |
| Source Agency |
Congressional Research Service |
| Older Revisions |
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Summary:
When a Social Security-insured worker dies, the surviving spouse who was living with the
deceased is entitled to a one-time lump-sum death benefit of $255. If they were living apart, the
surviving spouse can still receive the lump sum under certain conditions. If there is no such
spouse, the payment can be made to a child who meets certain requirements. In the majority of
deaths, however, no payment is made.
The lump-sum death benefit was once an important part of Social Security benefits to survivors.
Between 1937 and 1939, the lump-sum was the only benefit available to survivors of insured
workers who died before 65 years old, and before 1952, the $255 amount was greater than three
times the maximum monthly benefits payable under Social Security. However, because the lumpsum
death benefit has been capped at $255 for the past eight decades, inflation has eroded its
value. At the same time, the real value of other Social Security benefits has increased. The total
payment on lump-sum death benefits in 2016 was about $204 million, less than 0.03% of total
Social Security (Old-Age, Survivors, and Disability Insurance) benefit payments.
The erosion of the value of the lump-sum death benefit has brought about various proposals to
change it, including some recent congressional proposals that would have increased the benefit
amount. Several presidential budget proposals have also proposed changes, ranging from
eliminating the provision to changing eligibility rules. None of these proposals were enacted into
law
