Upon the death of an insured worker, a surviving spouse who was living with the worker may be eligible for which Social Security payment?

Why A is correct

Social Security pays a lump sum death benefit to the eligible surviving spouse of a deceased worker, or to an eligible child if there is no surviving spouse. The lump sum is a one-time payment that is separate from the monthly survivor income benefits the family may also receive. Because the payment is small, life insurance is commonly used to supplement it and cover final expenses. The lump sum is available to a spouse who was living with the deceased at the time of death, or in some cases to a child who meets the eligibility rules.

Why the other options are wrong

• Social Security does not pay a multiple of the worker's salary at death; benefits are based on the earnings record, but the lump sum is a fixed amount. Accordingly, this option is not correct because it does not match the specific rule or product that is described in the question.
• Social Security does not refund payroll taxes; the contributions fund ongoing benefit programs rather than creating a personal account to be refunded at death. This option therefore does not match the facts presented in the question and is not the correct answer to select.
• There is no survivor annuity tied to a final pension; survivors receive Social Security survivor benefits under the worker's earnings record, not the worker's private pension. This answer describes a different situation from the one in the question and is therefore incorrect under the facts given here.

Memory hook

On death, Social Security pays only a small lump sum, so buy life insurance.