Some people in the United States will get around $2,000 more each month from Social Security thanks to a new bill that could go into effect soon.
People who are disabled and seniors who are retired usually get Social Security payments every month. Still, a lump sum death payment is another way for the survivor benefit program to send Social Security checks to the family of a dead Social Security claimant.
Over many years, this amount has stayed the same at $255. It has been this way since 1954. This is still true even though the cost of living, housing, and medical care for Americans is going up.
A new bill could impact millions of beneficiaries who rely on their Social Security checks
The senators who made the Social Security Survivor Benefits Equity Act say that funeral costs have also gone up, so for many people, the lump sum payment does not even come close to covering the costs of death.
Kevin Thompson, founder and CEO of 9i Capital Group and a financial expert, told Newsweek that this would be a big step toward getting the death benefit up to date with today’s money after taking inflation into account.
This will help cover the costs of the funeral and other costs that come up when someone dies.
This week, Democratic Senator Peter Welch of Vermont introduced a plan that would raise the death benefit to $2,900 to keep up with rising prices.
A third group of senators, independent Bernie Sanders of Vermont and Democrat Elizabeth Warren of Massachusetts, also backed the bill. Senator Welch also said that funeral costs should not be the last thing a family thinks about when a loved one dies.
But the cost of losing a loved one has become a big problem for many families who have lost a loved one. This is because Social Security checks are supposed to help people pay for funerals, but they have not kept up with inflation.
It is also important to know that the National burial Directors Association says the average cost of a full burial and cremation service is now $6,280. This is more than the $700 that was allowed as part of the $255 lump-sum death payment.
The price of a funeral with a casket is also expected to go up to around $8,300. Since the death benefit has not been updated for inflation since the 1950s, Thompson said that the bill has a good chance of passing based on the past 70 years.
Thompson said that the amount should be raised to keep up with inflation. Many people find it funny how big their Social Security checks are when they get the death payment.
Families who have lost their loved ones will also benefit from this change in Social Security checks
During these hard times, this would help families a lot, since they often have to raise money to bury their loved ones. Many people are hopeful about the bill’s chances, but not all of them.
There has been interest in the idea of raising the death benefit checks that people get from Social Security. However, Joseph Patrick Roop, head of Belmont Capital Advisors, told Newsweek that political and financial problems make it unlikely that the plan will work.
There is a lot of disagreement about whether or not Social Security can work and about how to change it. Because of this, bills that try to change or grow the program often run into problems.
The higher $2,900 amount will take effect in 2025 if the new measure passes. It is based on the consumer price index for pay earners and office workers in cities.
Right now, the death payment can be given to people who meet certain conditions. Remember that you have to send in your application within two years of the death of a parent or partner.
The benefit is usually given to the surviving partner, but if there is not one, the money may go to the person’s children. Also, people who are left behind usually have to tell Social Security that a loved one has died.
This stops any more fraudulent payments of Social Security funds. Survivor benefits are also given to spouses who are 60 years or older, 50 years or older and disabled, and who are looking for the child of the deceased.
Most of the time, these types of Social Security checks can be given to children younger than 18 or disabled adults older than 18.
In certain situations, parents of the deceased, as well as stepchildren and grandchildren, may also be qualified if they relied on the person for at least half of their income.
But experts say that people who only get a one-time death payout might be unhappy with the amount.
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