The Surviving Spouse’s To-Do List, Part 2: Collect Benefits

Last week, we started our six-part series – The Surviving Spouse’s To-Do List, detailing the initial items a widow(er) should do after the loss of their spouse. While we encourage you to leave any big decisions for after you have had a moment to grieve, there are some things you will need to start doing in the months to follow.

Last week was about gathering paperwork. This week, it’s time to start thinking about what you need to do to collect survivor benefits. Let’s get started.

Enlist Help

Whether your spouse had a long battle with an illness or his/her death was unexpected, this is an incredibly difficult time in your life. To help you with the tasks and decisions that lie ahead, consider putting together a "financial support team." This could include a close family member or friend, a financial advisor, accountant, or attorney. Just make sure your team is comprised of individuals who understand and respect your views and can be trusted to help you make sound financial decisions.

Social Security

A widow(er) of full retirement age is entitled to 100% of their deceased spouse’s Social Security benefit. You can collect this survivor benefit before you reach retirement age, but you will only receive a percentage of the total benefit. If you were collecting spousal benefit prior to your spouse’s death, the survival benefit will take its place. Individuals who are younger than full retirement age will lose all the spousal benefit if they decide to wait until they are fully eligible. For more information or to view your (or your spouse’s) annual Social Security statement, log on to the Social Security website.

Life Insurance

If your spouse carried a life insurance policy, you will need to file a claim to receive the death benefit. You will need a copy of the death certificate to begin the process.

When filing the claim, you’ll be given some paperwork to review and sign. Read this document carefully, as you will need to make a decision regarding how you would like the funds dispersed. There are benefits and downsides to each option, so seek the advice of a financial advisor or attorney if you don’t fully understand your choices.

If you cannot find the paperwork for your spouse’s life insurance policy, go through your bank statements or check registers to see if any payments were made to an insurance carrier. It’s also a good idea to check with your spouse’s employer and any professional organizations they were a member of. If you are still unable to locate a policy, MIB Solutions' Policy Locator Service can often help find the information needed. Inquire about their fees before enlisting their help.

Employee Benefits

In addition to a life insurance policy, you may have other employee benefits due to you. This could include: unpaid salary, accrued sick leave and vacation, unpaid bonuses, stock, and/or funds from a medical flex spending account.

You will also want to check on pension benefits and your spouse’s 401(k). Notify the pension plan administrator of your spouse’s death as soon as possible. Some pensions reduce the pension’s payment amount once the primary has passed. If this is less than what you are currently receiving, you could be expected to send back any overpayment.

Health insurance is another item to consider. If you were covered under your spouse’s employer plan, speak with the plan administrator to review your options.

Veterans’ Benefits

Spouse’s of veterans are generally eligible to receive burial expense benefits in the amount of $300 and up to $150 towards private cemetery fees. If you wish to have your spouse buried in a national cemetery, this comes at no cost to you.

If, prior to his/her death, you spouse was receiving disability benefits, your family may be entitled to continue those monthly payments. Your regional VA office can help you with any questions you might have.

Stay tuned for Part 3, where we address the next items on your to-do list. Don’t hesitate to contact us with any questions, at 1- 866-450-2424.