social security Archives - Medicare Life Health

Social Security Lump Sum Death Benefit Guide

Carly H. Cummings — Sun, 24 Jan 2021 20:25:05 +0000

When someone you are related to dies, you are often entitled to a Social Security lump sum death benefit of $255. Let’s look at who is eligible and how you can obtain your funds for burial and funeral planning.

Social Security $255 Lump Sum Death Benefit

It is not a lot, but when a U.S. Citizen dies, then the Social Security Administration will provide their next of kin with a lump sum death benefit of $255. This is a one-time payment (meaning it is not reoccurring).

Who is Eligible

If the person who dies is a U.S. citizen eligible for Social Security, then their next of kin will receive the lump sum benefit. Usually, this means the surviving spouse.

In general, eligibility for Social Security in the United States means that a person worked long enough in jobs that were paying into the Social Security program to be entitled to benefits when they reach a certain age. The person who dies must be considered “eligible” under the SSA’s rules in order for their kin to receive any of these benefits.

Who is eligible to claim the lump sum death benefit:

The surviving spouse – living with the deceased.
According to the Social Security Administration (SSA), “If living apart and eligible for certain Social Security benefits on the deceased’s record, the surviving spouse may still be able to get this one-time payment.”
Or, if there is no spouse, the SSA can pass on the money to a child on record.

How do I claim the $255 social security death benefit?

There are several ways to confirm eligibility and to get your death benefit.

First, if you are working with a funeral home, the funeral director can report the death to Social Security for you.

Otherwise, if you need to contact Social Security yourself, you can reach them in the following ways:

You can visit their website to apply for benefits.

If you don’t have the internet or are not comfortable using the SSA website, a phone number is available at
- 1-800-772-1213
- TTY number, 1-800-325-0778, for the deaf or hard of hearing.

Social Security Lump Sum Death Benefit Form

Here is the link to the SSA’s form to fill out to receive your lump sum death benefit:

Click here for the PDF Form for Application for the Lump Sum Death Payment from Social Security.

Also, here is the official information form on the Lump Sum Death Benefit, if you need extra assistance: https://www.ssa.gov/forms/ssa-8.html

What is the lump sum death benefit for social security?

This article addressed the question of how do i claim the $255 social security death benefit. It is a one time death payment from social security and not the same as a monthly social security benefit often used by the surviving spouse.

Who is entitled to death benefits in social security?

Besides the one time social security death benefit amount of $255, there are other benefits for surviving spouses. To qualify for monthly death benefits from social security, the deceased must first be eligible for the social security program as mentioned above.

According to the SSA, the people entitled to MONTHLY benefits are:

Certain family members may be eligible to receive monthly benefits, including:
— A widow or widower age 60 or older (age 50 or older if disabled);
— A widow or widower any age caring for the deceased’s child who is under age 16 or disabled;
— An unmarried child of the deceased who is: Younger than age 18 (or up to age 19 if they’re a full-time student in an elementary or secondary
school); or Age 18 or older with a disability that began before age 22;
— A stepchild, grandchild, step grandchild, or adopted child under certain circumstances;
— Parents, age 62 or older, who were dependent on the deceased for at least half of their support; and
— A surviving divorced spouse, under certain circumstances.

You will need to start at the SSA.gov website to begin your process of confirming eligibility for monthly benefits. Here is a good list of publications with helpful information.

Other Options for End of Life Expenses

If you are thinking now, $255 is not a lot of money! You are right. Hopefully, your loved one had other life insurance – such as final expense insurance (aka burial or funeral insurance).

If they did not, you might have to get creative with how you deal with your end of life costs. Our article, Average Cost of a Funeral, looks at low cost options for funerals and burials. That is a good place to start.

Furthermore, this process may make you consider your own funeral planning and budgeting. Depending on where you are in life, you will have options on what insurance will be necessary for your end of life costs.

Conclusions

In summary, getting your $255 survivors social security lumpsum death benefit should be pretty easy. However, as with most government agencies, these processes do take a little bit of time. Consequently, the SSA advises starting the process as soon as possible. This will deliver a prompt payment.

We wish you the best on your journey and offer you the following articles to help make your planning easier:

What to Do When Someone Dies

Caring for a Dying Parent

Burial Insurance Information

Average Funeral Costs and Expenses

Your Complete Guide to Planning a Funeral

The post Social Security Lump Sum Death Benefit Guide appeared first on Medicare Life Health.

Medicare and Medicaid Difference Guide

Carly H. Cummings — Thu, 09 Jan 2020 17:50:31 +0000

Medicare and Medicaid Difference Guide

The Medicare and Medicaid Difference Guide helps you understanding both services, so you can make the best decisions for yourself and your loved ones.

The United States has two separate national health care systems: Medicare and Medicaid. The government created the two programs for two different kinds of people. However, they often overlap. Let’s look at both programs, including their similarities and difference. We will also look at who needs or qualifies for each program.

Let’s Start with Medicare vs Medicaid.

What is Medicare?

Medicare is the U.S. national health care program that provides seniors age 65 and older, and some disabled people, with health insurance.

The U.S. government started the program in 1966. The Centers for Medicare and Medicaid Services runs these programs. Medicare also covers people with end stage renal disease and amyotrophic lateral sclerosis.

Medicare does not cover all of the costs associated with health care. As a result, people with Medicare will also use a Medicare Supplement Insurance Plan (Medigap Plan) or a Medicare Advantage Insurance Plan to round out their care coverage.

Please read our Ultimate Guide article on “What is Medicare.“

What is Medicaid?

Medicaid is the United States National Health Care System that provides health coverage to over 64.7 Million People.

The program was created for people with low-incomes that cannot afford, or do not have access to, private healthcare insurance.

How are the programs similar?

The programs are both National Health Care Systems. In fact, they are the only two nationalized heath care systems the United States has. Many other countries around the world have much more extensive national coverage for their citizens. The U.S. has a limited program for specific age, income, and health groups, and the rest of the country relies on private health insurance.

In addition, both programs cover specific hospital services, doctor services, and other health care related services.

Medicare has four parts. First, Medicare Part A, also known as “Hospital Insurance,” helps with coverage regarding: inpatient care, home health care, nursing facilities, and hospice.

Second, there is Medicare Part B, also known as “Medical Insurance.” Part B helps with coverage related to doctor and other provider services, including: doctors visits, health care providers, outpatient, prevention services, and medical equipment. Medicare Beneficiaries pay for Part B.

Finally, Medicare has a Prescription Drug Program that is administered by private insurance carriers. Click here to lean more about What Medicare Covers and Medicare Parts A, B, C and D are.

Both Medicaid and Medicare Advantage Plans can be set up as managed care plans with networks of doctors and hospitals members have access to. If you would like to learn more about how these networks work, please read, HMO vs PPO – Which is Better?

How are the programs different?

One of the biggest differences between the two programs is who runs them. Medicare is run on a national level, by the Federal government. On the other hand, Medicaid is run by each state individually.

Of course, the biggest difference is the the different populations the programs serve:

Medicare – For Seniors over age 65, and some disabled people
Medicaid – For people with low income and few resources

Medicare and Medicaid Differences in Beneficiaries – Who Gets What Program?

The U.S. government created Medicare and Medicaid to take care of different “vulnerable” populations – the poor, the disabled, and the elderly. Let’s look at each program and population.

Who should get Medicare?

Anyone who is a citizen or qualified resident of the U.S. can enroll in Medicare when they turn 65 years old. There is a seven month window of time starting three months before turning 65, the month of your birthday, and then three months after your birthday month.

How do I Sign-up for Medicare?

First, you may be automatically signed-up if you are already receiving Social Security (SS) or Railroad Retirement (RRB).
Second, if you are not already receiving SS or RRB benefits, you must sign up for it when you turn 65 years old.
Conversely, if you are not ready for Medicare when you turn 65, you must notify the government that you want to delay your benefits. If you do delay, it must be because you have credible coverage in place. An example of this would be an employer plan.
Click here to read more about Medicare, including where to go to enroll.
From Our Article What is Medicare? A Guide to All Medicare Basics

Supplemental Medicare Insurance Options

Medicare picks up about 80% of the health care costs for its beneficiaries. For the other 20%, seniors turn to either Medicare Supplements (aka Medigap Plans) or Medicare Advantage Plans. Click here to read our article on Medicare Advantage vs. Medigap, or see the informational articles below.

Who should get Medicaid?

Medicaid is for people with limited income and resources. Medicaid is run on a state level, not on a federal level. As a result, in order to qualify for Medicaid, you will need to determine what your state defines as a qualifying income level.

How Do You Enroll in Medicaid?

Again, since Medicaid is run by State Governments, you will need to contact your state’s agency to start see if you qualify to enroll.

You can find a list of State Agencies here on the Medicaid.gov website.

Who Can Get Both Medicare and Medicaid?

People of any age who have certain qualified disabilities and people over 65, who are also below their states Medicaid income levels, can qualify for both Medicare and Medicaid.

For example, Henry is a 55 year-old disabled man who is also unemployed and living below the poverty level set by his state. Consequently, he would most likely qualify for both Medicaid (because of his income level) and Medicare (because of his qualified disability).

People that qualify for both programs are called “Dual Eligible.”

Who Can Help?

Navigating one (let alone both) of these systems can be confusing. But there is help available.

If you need help with Medicaid or need to enroll in Medicaid only, then contact your state agency directly.

If you need help enrolling in Medicare, then you can contact CMS and Social Security in the following ways:
- BY PHONE: If you need to sign-up for Medicare, you can call Social Security at 1-800-772-1213.
- ONLINE: Additionally, you can also visit CMS online at ssa.gov/benefits/medicare if you need to sign yourself up.
- RAILROAD: Finally, if you are on Railroad Retirement Benefits, you will need to notify the local Railroad Board (RRB) office before you turn 65 that you would like to sign-up for Medicare. You can sign-up 3 months before you turn 65 even if you are not planning on retiring at 65. You can read more about Railroad requirements in our article here.

Finally, if you need help finding a Medicare Supplement or Medicare Insurance Plan, or if you are dual eligible for both Medicare and Medicaid, then please contact an Insurance Agent. An Independent Medicare Insurance Agent will help you explore your options, and help you make the right choice for your unique situation.
- You can contact your author Carly Cummings here, for assistance if you live in Nebraska or Iowa.
- Or, if you live in all other 48 states, you can find an agent in your area here.

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The post Medicare and Medicaid Difference Guide appeared first on Medicare Life Health.

New Rules of Retirement

Carly H. Cummings — Fri, 20 Sep 2019 19:47:02 +0000

The New Rules of Retirement Series

Retirement is changing, whether you like it or not… whether you are prepared for it or not. Let’s lay down the new rules of retirement and how to follow them, bend them and break them for your needs.

This is the introduction article to our New Series: The New Rules of Retirement. The Next Article in the Series is Jobs For Retired People.

Rethinking Retirement

You have the freedom to define the word “retirement” to best suit you and your needs. Retirement might have been cut and dry for the previous generations, but it is all over the board for those pondering it now.

We all know the old playbook – put in your time at a company – retire after 40 years – receive your pension and social security. This playbook was scrapped for many in the baby boomer generation on. Events beyond our control may have set us back or have caught us off guard.

Depending on if this happens to you later in life or earlier in life, there are still ways to enjoy a “retirement.” Moreover, some might find the new ways of providing for retirement even more fulfilling than the old ways.

A Case Study in The New Rules of Retirement: The “Average American”

Let’s say that you are the “Average American” who is of retirement age. (We are talking – the most average of average.) You decide to retire at 66, the current full age of retirement. Right now, the average Social Security check for the Average American is $1,461 a month.

In addition to Social Security, the “Average American” will have about $172,000 in retirement savings at age 66. This is based on a (median estimate instead of average).

Then, let’s assume you made about $60,000 a year in your last years, and you are about to retire today. You estimate that you will need about 70% of that amount to live in retirement. So, you need $42,000 a year, or $3,500 a month to fund your modest American retirement. (This is all in current dollars, not future money for this example.)

To be reasonably safe, we will assume you will live to about 90 years old and your savings will stay in the stock market with a 5% rate of return in conservative investments.

Just How Screwed/Set are You – The “Average American”?

If you live to 90, for this case study, the math says you will need about $470,000 in savings to compliment your social security (in today’s dollars). However, you only have $172,000. In this scenario (living off of $42,000 a year) you are short $298,000.

You will have $2,205 a month to spend instead of $3,500
= a deficit of $1,295 a month.

This adds up to living off of $26,460 (including social security) instead of $42,000.

Plus… TAXES!

On top of this, we have not even taken into account taxes! Depending on how much you withdraw each year, and where you have your money stashed (401k? Roth?), you may need to pay taxes on your retirement income. Austin, at The Logic of Money, does a good job on quickly breaking down retirement taxes in this article here.

So, What Do You Do?

Many Americans will accept their fate and live on their fixed income, or they may decide to stay in their full-time job longer. However, that does not need to be you! Being retired does not need to be a do nothing sentence.

In Comes the New Rules of Retirement

The New Rules say you can make up the difference by making passive income and participating in side jobs. (This is what the kids call side hustling!) Moreover, you can still maintain your retired status find ways to do things you love (or hopefully come to love).

With your side job, you can showcase your skills/expertise or learn a new skill. You only need to make about $1,300 a month, so there the pressure is revealed to find something that just “pays the bills.” Retirement is a time to spend time doing things you enjoy with people you enjoy. You can tailor your experience to meet your needs with a little bit of planning and initiation.

The new rules of retirement say you have the freedom to define the word “retirement.” You can still be retired and bring in extra income in our new economy.

Passive Income and Side Jobs for Retirement

Our next articles in our New Rules of Retirement series will help you explore all the avenues of making extra money. We will explore traditional jobs as well as new jobs available to retirees who need a little extra income.

READ IT HERE: Jobs for Retired People

You can also get a jump start by reading about our favorite retirement money books here.

The post New Rules of Retirement appeared first on Medicare Life Health.