Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
The Social Security lump-sum death benefit is a one-time payment made to:
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Social Security pays a lump-sum death benefit to the deceased worker's eligible surviving spouse, or to an eligible dependent child if there is no surviving spouse. It is a small, one-time payment that is distinct from monthly survivor income benefits. Not every worker's estate receives it; eligibility depends on the survivor's status at the time of death. Because the amount is limited, life insurance is the primary tool agents use to cover the family's immediate death-related cash needs.
Why the other options are wrong
- A) The payment goes only to an eligible spouse or dependent child, not to arbitrary relatives claiming dependency.
- B) Not every insured worker's estate is paid; the payment is limited to eligible survivors and is not an estate entitlement.
- C) The lump-sum death benefit is a Social Security payment and is entirely separate from life insurance proceeds.
Memory hook
Social Security's final check goes to the right survivor — life insurance covers the rest.