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Understanding death benefits and eligibility

Businesses have to provide death benefits to their employees’ family in case an employee passes away. Federal and state laws make sure organizations do not ignore their responsibility towards the former employee’s family. It is important for employees to understand their rights in the event they pass away. Families should have prior knowledge regarding their eligibility for death benefits from the organization.

There are two major types of death benefits; insurance death benefits and pension death benefits. Insurance death benefits are payments made to the spouse or children of a deceased employee. In case the employee passed away due to a work-related illness or disease, the payment is made according to workers’ compensation laws. But some companies make sure the families of their deceased employees are taken care of regardless of how they passed away. Death benefits usually come from the company itself, and several tech giants have created policies to take care of the families of deceased employees.

Pension death benefits are paid to the family through a specific pension plan. It is important for the family to understand how the pension was structured, and what laws have been made to protect their rights. Pension death benefits are provided when a retired individual passes away, and their family requires assistance. The Employee Retirement Income Security Act of 1974 (ERISA) was passed by the federal government to ensure that pension plans were awarded to employees and their families in case of death.

If is perfectly normal to worry about your family in case something happens to you. You should have knowledge about your organization’s death benefit plans and how those plans will help your family. In case you are not satisfied with the plan, it is advisable to contact an experienced attorney. The attorney will go through your company’s death benefits plan and give you advice accordingly.