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Workers’ Compensation Death Benefits Explained

By: Richard Stockton • Edited by: Katelynne Shepard • Subject Matter Expert Reviewed by: Sarah-Jane Williams, LL.B(Hons) • 2 cited sources • Updated Nov 11, 2024

It’s never easy to lose a loved one, and the emotional strain of a loss is only made more difficult when there’s financial uncertainty as well. Workers’ compensation death benefits exist to help survivors pull through a hard time with less worry over financial dislocation from funeral expenses and lost income.  This article will dive into workers’ compensation death benefits, including criteria for eligibility, the types of benefits available, how to claim them, and how they can cover end-of-life costs. 

Key Takeaways

• Workers’ compensation death benefits provide financial support to surviving dependents of deceased workers.
• The duration and amount of death benefits vary considerably by state.
• Workers’ compensation can cover funeral, burial and unpaid medical expenses.
• Survivor benefits are available for dependents, with the exact amount often calculated based on the deceased worker’s average weekly wage.
• Eligibility criteria and the definition of who is a dependent also differ from state to state.

What Are Workers’ Comp Death Benefits?

Workers’ compensation death benefits are payments to dependents of an employee who passed from a work-related injury or illness, provided that the deceased worked for a public or private employer with the relevant insurance. 

The amount available as a benefit varies from state to state. It also matters how much the deceased worker was receiving before passing away, as the previous benefit amount is a baseline for computing the one-time workers’ comp death benefit. State-level workers’ comp death benefits are not to be confused with federal programs, such as the VA. 

Where you live makes a big difference to the final benefit payment. Deceased workers’ beneficiaries in South Carolina, for example, are eligible for a maximum of $2,500 in funeral compensation. Survivors in New Jersey and Delaware can claim up to $3,500, while in 2024, Kentucky’s benefit tops out at $85,307^[1].

How Long Do Death Benefits Last?

The duration of workers’ compensation death benefits is not indefinite. In general, these benefits are paid out over a set period, often until certain conditions are met, such as the surviving spouse remarrying or dependent children reaching adulthood. Some states provide benefits for a number of weeks, such as New York’s 52-week limit^[2].

What End-of-Life Costs Will Workers’ Compensation Death Benefits Cover?

End-of-life costs can be a lot, and in some circumstances, workers’ compensation death benefits can provide a much-needed reprieve. Here are some of the costs these benefits can help with: 

Funeral and Burial Expenses

Workers’ compensation death benefits typically cover funeral and burial expenses. Some states cap the reimbursable amount. Commonly covered expenses include funeral service fees, burial expenses or cremation costs, transportation of the deceased, and memorial service expenses.

Medical Expenses

Workers’ compensation death benefits can also address related medical expenses. When someone sustains a fatal injury at work, they often incur significant medical expenses that can be a financial burden to survivors. Medical benefits typically cover hospital stays, surgeries, medications, and other treatments resulting from the incident.

In most cases, survivors aren’t liable for paying a deceased’s outstanding medical bills; rather, recovery generally comes from the estate.

 Sarah-Jane Williams, Unregistered Barrister

Are There Survivor Benefits?

Survivor benefits provide ongoing financial support to the deceased worker’s dependents. These payments are typically calculated based on a percentage of the deceased worker’s average weekly wage and are intended to replace the income that the family lost. In addition to support for the lost paycheck, some states also offer payments for vocational training for surviving spouses or education benefits for dependent children.

Eligibility for Workers’ Compensation Death Benefits

Primary Workers’ Comp Beneficiaries

Workers’ compensation death benefits are generally available to the primary dependents of the deceased worker, such as the spouse, children, and other direct dependents. The definition of dependents and the specific eligibility criteria can vary by state. For example, some states may have specific requirements regarding the dependency status or the relationship between the deceased worker and the claimant.

Additional Workers’ Comp Beneficiaries

In cases where there are no primary beneficiaries, workers’ compensation death benefits may extend to secondary dependents such as parents, siblings, or other relatives who were financially dependent on the deceased worker. Complicated family dynamics, such as separations, divorces, unmarried partners, stepchildren, or estranged children, can affect this eligibility. Each state has its own rules and definitions regarding who qualifies as a dependent, so it’s important to consult state-specific guidelines or seek legal advice.

Steps to Claim Workers’ Compensation Death Benefits

Filing a claim for workers’ compensation death benefits is a multistep process:

1. Notify the parties. The first step in filing a claim is usually to notify the deceased worker’s employer and their workers’ compensation insurance company about the death. File this notification as soon as possible because there’s usually a time limit for opening a benefits claim.
2. Collect documentation. Collect important documentation related to the workplace injury or illness. These are needed to establish eligibility.
3. File the claim. Submit the completed claim form and all supporting documentation to the workers’ compensation insurance company. Pay attention to deadlines because delays can result in benefits denials. These deadlines range from as little as 6 months post-injury or death in West Virginia to as much as 6 years in North Carolina^[2]. Sarah-Jane Williams, Unregistered Barrister, notes that the norm in most states is 1 or 2 years. 
4. Await a decision. After filing the claim, the insurance company will review the documentation and make a decision. Be prepared for potential delays or disputes, and consider seeking legal assistance if complications arise.

Documentation Required to Claim Benefits

As you file a claim, be sure you have the necessary documentation ready. Insurance providers generally require a death certificate, proof of dependency, and various medical records arising from the injury or illness. It could take time to process these documents, and lost or missing paperwork could extend the time it takes to get an approval.

Workers’ Comp Death Benefits Summarized

When workers die from an on-the-job injury, workers’ compensation benefits can be an invaluable bridge to protect their dependents’ financial situation. Benefits can usually help out with medical expenses, funeral costs, and ongoing support for eligible survivors. Eligibility and claim limits vary by state, so it’s almost always a good idea to get professional advice when filing a claim.

Written by Richard Stockton

Richard Stockton is a science and tech copywriter with nearly two decades of experience. Starting from a background in allied health, he has produced professional white papers and explainer pieces on AI, the mining industry, the latest science news and a range of other challenging topics. Richard is certified in prehospital care and has worked in health care since 2008. As a writer, Richard is able to share his skills with a diverse audience, though he does insist on using the Oxford comma wherever possible, possible, and appropriate.

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Edited by Katelynne Shepard

Katelynne Shepard is a writer, editor and SME who is proficient at crafting and reviewing content. She has been a full-time copywriter and editor since 2011 and has written content for Fortune 500 companies, independent law firms, indie publishers, small-business owners and mainstream websites. She specializes in parenting, lifestyle, family law, personal injury, criminal law, immigration law, astrology, personal finance, education and health care. In addition to thousands of e-commerce product and category descriptions, Verle's work includes SEO blogs, social media posts and long-form informational articles.

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Subject Matter Expert Sarah-Jane Williams, LL.B(Hons)

Sarah-Jane Williams is a seasoned writer with a robust legal background, holding an LL.B (Hons) Bachelor of Laws and a Bar Training Course certification with a 'Very Competent' grade. She was called to the Bar at Lincoln's Inn. Her expertise as a legal SME is complemented by her diverse writing portfolio covering law, senior care, culture, and travel. With over a decade of writing experience, Sarah-Jane's work spans a wide range of subjects from engineering and health to pet care and spiritualism. Her global perspective is enriched by extensive travel and residences across four continents, enhancing her cultural insights and intercultural communication skills. Sarah-Jane's multifaceted background, including roles in housing, research, and advisory capacities, adds depth to her writing, making her a versatile contributor to any niche.