Social Security
When does Social Security become a life insurance program? When does it stop?
When does Social Security become a life insurance program? When does it stop?
When you have a child and have paid into Social Security for a period of at least 6 years (at least one working quarter during each year), you will qualify for survivor benefits and that turns Social Security into a life insurance policy. Each child would receive a survivor benefit and your spouse would receive a survivor benefit if you were to pass. There is a maximum family benefit if there are more than three survivors in the family.
Social Security stops becoming a life insurance program for the surviving spouse when the last child hits 16. The surviving spouse does have a survivors benefit on the retirement portion of their spouses benefit when they reach age 60 and that benefit rises as they reach their full retirement benefit which is 65, 66, or 67 based on their date of birth.
It stops becoming a life insurance benefit for the child when they graduate from high school or reach age 19. Each spouse can go to socialsecurity.gov and open a Social Security account online and then print off their Social Security statement to review these benefits and more. Inform yourself!