Monday, March 19, 2007

Survivor Income Insurance- Social Security Provides Coverage

I try to use services that are already provided because of taxes, fees or contributions that I have already paid. Recently, I've noticed families with children have access to more services and benefits than families without children.

While I have not been counting much on Social Security for any retirement income, I realized that we became eligible for a new form of Social Security protection, survivor income insurance, when we adopted our daughter. According my annual statement, my daughter would receive up to $1591 per month in the event of my death. My spouse, as child caretaker, would also receive up to $1591 per month. In addition, in the event of my spouse's death (which we had not insured), I would receive up to $935 for each category.

This is excellent news for us. Two of the insurances I carry are life insurance and survivor income insurance. Before we had children, the only way to protect my spouse, in the event of my death, was to purchase both insurances. The life insurance policy would pay off the house and the survivor income insurance would provide a lifetime stream of income equal to 25% of my salary.

After having our daughter, we can use Social Security to cover a part of the survivor income insurance needs. This was a bonus I had not expected.

For more on Strategies and Plans, check back every Monday for a new segment.

Photo Credit:, Mary R. Vogt

This is not financial advice. Please consult a professional advisor.

Copyright © 2007 Achievement Catalyst, LLC

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