The Social Security death payment: who gets it
The $255 goes to one of two people:
1. A surviving spouse who was living with the worker at the time of death. A spouse living apart can still qualify if they were already receiving, or eligible for, monthly benefits on the worker's record.
2. A dependent child, if there is no eligible spouse, who was receiving or eligible for monthly benefits on the worker's record in the month of death. Multiple eligible children split the $255.
A former spouse is not eligible. Adult children who aren't receiving benefits on the parent's record are not eligible. In the majority of deaths, no one qualifies and no payment is made. The amount hasn't changed in over 70 years, so its real value shrinks every year.
How to claim it. Call Social Security or visit a local office; there's no online application for the death payment. It must be claimed within two years of the death. The funeral home usually reports the death to Social Security if you give them the deceased's Social Security number, but reporting the death and claiming the payment are separate steps.
Source: Congressional Research Service, Social Security: The Lump-Sum Death Benefit (updated October 2024).
What Medicare covers — and doesn't
Medicare is health insurance. It covers hospital care, hospice, and medical services at the end of life, and hospice care under Medicare includes bereavement counseling for the family. It does not cover any part of a funeral, burial, cremation, casket, plot or memorial service. Medicare Advantage plans don't either. If you've seen an ad suggesting a 'Medicare burial benefit,' it's an insurance advertisement, not a government program — the same is true of 'Social Security funeral benefit' mailers.
Other help that exists, and its limits
Survivor benefits. Separate from the $255, a surviving spouse or dependent child may qualify for ongoing monthly Social Security survivor benefits. These replace income; they don't arrive in time to pay a funeral home.
Veterans. The VA provides burial in a national cemetery at no cost to eligible veterans, plus a headstone or marker, and a burial allowance that partly reimburses funeral costs. Amounts depend on whether the death was service-connected. Apply through the VA; the funeral home can help.
State and county programs. Many states and counties pay for a basic burial or cremation when the family has no means, usually through the Medicaid or social services office. Eligibility is strict and the services are minimal.
Employer and union benefits. Some retirees have a small group life policy or a death benefit through a former employer or union. Worth a phone call.
Life insurance. The only source that pays a meaningful amount, quickly, directly to the family, and can be used at any funeral home. This is what final expense insurance is for.
What actually covers a funeral
A funeral with viewing and burial has a national median cost of $8,300, or $9,995 with a vault, before the cemetery plot and headstone. Cremation with a viewing is about $6,280. The bill usually comes within a week or two, and funeral homes generally want payment before or at the time of service.
Families pay it three ways: savings, credit, or a life insurance payout. A final expense policy of $10,000 to $20,000 pays the named beneficiary in cash, usually within a few weeks of the claim, and the premium is fixed for life. For a person in their 60s, that's often $40 to $70 a month; our rates guide has the full table by age. See the funeral cost guide for what goes into the bill.