	Introduction

Following the death of a worker beneficiary or other insured worker, Social Security makes a lump-sum death benefit payment of $255 to the eligible surviving spouse or, if there is no spouse, to eligible surviving dependent children. In 2016, such payments were made for about 782,300 deaths, for a total of about $204 million in benefit payments. 74-271), but the program did include a lump-sum benefit that would be paid if a worker died before the retirement age of 65. When made, the payment equaled six times the primary insurance amount (PIA). The benefit was therefore paid in nearly every death of a Social Security-insured worker. 83-761) kept the formula of three times the PIA but capped the benefit at $255, which was approximately three times the maximum PIA payable under Social Security in 1952. Current Eligibility Rules

If a surviving spouse is living with the worker at the time of death, the benefit is paid to the spouse. If the worker and the spouse were living apart, the spouse could still receive the lump-sum death payment if the spouse was already receiving benefits based on the worker's record or became eligible for survivors benefits upon the worker's death. The real value of the lump-sum death benefit has declined significantly since it was introduced. The share of the total lump-sum death benefit to total Social Security benefits (indexed to wages) have declined faster than the real value of the lump-sum death benefit (indexed to prices), mainly because Social Security benefits are linked to national wage levels, which are increasing faster than price levels. Proposals to Change or Eliminate the Lump-Sum Death Benefit

Over the years, various proposals would have changed or eliminated the death benefit. Some proposals would have increased the benefit. None of these proposals have been enacted into law.
When a Social Security-insured worker dies, the surviving spouse who was living with the deceased is entitled to a one-time lump-sum death benefit of $255. If they were living apart, the surviving spouse can still receive the lump sum under certain conditions. If there is no such spouse, the payment can be made to a child who meets certain requirements. In the majority of deaths, however, no payment is made.
The lump-sum death benefit was once an important part of Social Security benefits to survivors. Between 1937 and 1939, the lump-sum was the only benefit available to survivors of insured workers who died before 65 years old, and before 1952, the $255 amount was greater than three times the maximum monthly benefits payable under Social Security. However, because the lump-sum death benefit has been capped at $255 for the past eight decades, inflation has eroded its value. At the same time, the real value of other Social Security benefits has increased. The total payment on lump-sum death benefits in 2016 was about $204 million, less than 0.03% of total Social Security (Old-Age, Survivors, and Disability Insurance) benefit payments.
The erosion of the value of the lump-sum death benefit has brought about various proposals to change it, including some recent congressional proposals that would have increased the benefit amount. Several presidential budget proposals have also proposed changes, ranging from eliminating the provision to changing eligibility rules. None of these proposals were enacted into law.