Retirement and Other Insurance Concepts
A fully insured worker dies. Which survivor is eligible for the Social Security lump-sum death payment?
Answer and explanation
Answer: D. The one-time lump-sum death payment goes to a surviving spouse who was living with the worker, or who was receiving benefits on the record. If no such spouse exists it may go to an eligible child.Source: Social Security Administration — SSA survivors benefits: lump-sum death payment eligibility
More retirement and other insurance concepts questions
- What happens in a life settlement transaction?
- What IRS exclusion ratio formula is used to determine the tax-free portion of non-qualified annuity payments received during annuitization?
- What IRS penalty tax applies to premature distributions taken from a Traditional IRA before age 59.5 unless a statutory exception applies?
- What is the primary tax feature of contributions made to a qualified Traditional IRA by an eligible individual?
- What tax responsibility does an employee have in an economic benefit split-dollar arrangement?
- What test determines whether a life insurance contract is classified as a Modified Endowment Contract (MEC) under IRC § 7702A?
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