Does Social Security Pay for Cremation?
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Time to read 13 min
Table of contents
Quick Answers: What Is the Social Security Death Benefit? Who Qualifies for the $255 Death Benefit? Surviving spouse Dependent children The deceased must have been insured Limitations How to Apply for the Death Benefit Documents You Will Need How Long Does It Take to Receive the Payment? Kentucky and Indiana Social Security Offices Why Hasn't the Death Benefit Increased? Other Financial Assistance Options Survivor benefits (monthly payments) Veterans benefits State assistance programs Life insurance assignment Payment plans Can You Set Aside Money for Cremation If You Receive SSI? Irrevocable Burial Contracts: No Dollar Limit The $1,500 Burial Fund Exclusion What Counts as a Burial Fund Burial Spaces and Items: Also Excluded Options for SSI Recipients Does Medicaid Help Pay for Cremation in Kentucky or Indiana? Indiana Medicaid Burial Assistance How outside contributions work: How the program works: Kentucky: No Statewide Medicaid Burial Assistance Jefferson County Indigent Burial Program: What Kentucky Families Can Do Comparison: Indiana vs. Kentucky Medicaid Burial Benefits How to Keep Cremation Costs Affordable Choose direct cremation Compare prices Ask for itemized pricing Work with a provider who owns their crematory Frequently Asked Questions About Social Security Death Benefits Planning Cremation Services in Kentucky or Indiana
Quick Answers:
Does Social Security Pay for Cremation?
No, Social Security does not pay for cremation costs upfront.
The only payment available is a $255 one-time lump-sum death benefit, and only certain family members qualify.
This payment is not intended to fully cover funeral or cremation expenses. Most cremations cost significantly more than $255.
If you qualify, you must apply within two years of the date of death.
What Financial Assistance Is Available for Cremation Costs?
Indiana Medicaid Burial Assistance
- Eligible families may receive up to $1,200 for cremation and $2,000 for burial costs
- Requires application through the Indiana Family and Social Services Administration
- Income and asset eligibility requirements apply
Kentucky Burial Assistance
- Kentucky does not offer a statewide burial or cremation assistance program
- Some county programs may provide limited help on a case-by-case basis
SSI Burial Fund Exemption
- Supplemental Security Income (SSI) recipients can set aside up to $1,500 in a designated burial fund without affecting benefit eligibility
- This allows families to plan ahead without penalty
Key Takeaway
The $255 Social Security death benefit will not fully cover cremation. Indiana offers modest Medicaid assistance, while Kentucky families must rely on personal funds or affordable providers like Magnolia Cremations to manage end-of-life costs.
This guide explains the Social Security death benefit, who qualifies, how to claim it, and what other options exist when the $255 doesn't cover your needs.
What Is the Social Security Death Benefit?
The Social Security death benefit is a one-time, lump-sum payment of $255 paid to eligible survivors. This payment goes to the surviving spouse or dependent children, not to a funeral home or cremation provider.
This benefit has remained at $255 since 1954. Adjusted for inflation, it would be worth over $3,000 today. The lump-sum payment is now considered a "burial benefit," but $255 isn't enough to help most families with funeral costs.
Who Qualifies for the $255 Death Benefit?
To receive this payment, you must meet these requirements:
Surviving spouse
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 if they were receiving benefits on the deceased's record or became eligible for survivors' benefits upon the death.
Dependent children
If there's no spouse, some children may be eligible, including those aged 17 or younger, full-time K-12 students aged 18-19, or those of any age with a disability that began before age 22.
The deceased must have been insured
The deceased must have been either fully insured or currently insured under the Social Security system.
Limitations
Former spouses are not eligible for this benefit. The benefit also cannot be paid to a funeral home or cremation provider.
How to Apply for the Death Benefit
Survivors must apply for this payment within 2 years of the date of the number holder's death.
You can apply by calling the toll-free service at 1-800-772-1213 (TTY 1-800-325-0778) or by visiting your local Social Security office.
Documents You Will Need
- Certified death certificate for the deceased
- Proof of relationship (marriage certificate for spouses, birth certificate for children)
- Your Social Security number
- The deceased person's Social Security number
- Proof of U.S. citizenship or lawful immigration status (if not born in the U.S.)
How Long Does It Take to Receive the Payment?
Most families receive the $255 benefit within 2 to 3 months of filing a complete application. Processing times vary based on your local Social Security office workload and whether all required documents are submitted. To track your application status, call Social Security at 1-800-772-1213.
Kentucky and Indiana Social Security Offices
You can apply by phone at 1-800-772-1213, though some families prefer to visit their local office in person. Here are the main offices serving our area:
- Louisville, KY: 601 W Broadway, Louisville, KY 40202
- New Albany, IN: 3700 Blackiston Blvd, New Albany, IN 47150
- Indianapolis, IN: 575 N Pennsylvania St, Indianapolis, IN 46204
- Lexington, KY: 2241 Buena Vista Rd, Lexington, KY 40505
Tip:
For the most up-to-date information, families can review the Social Security Administration’s official guidance at ssa.gov or speak directly with a representative.
Call ahead to confirm hours and whether you need an appointment. Many offices now require scheduled visits.
Why Hasn't the Death Benefit Increased?
By 1954, the amount had been capped at $255. In 1974, the lowest possible payment using the original formulas reached $255. The minimum became the maximum, and now all qualifying survivors receive that fixed amount.
There have been proposals to increase this benefit. In December 2025, Representative Gabe Amo (D-RI) and Senator Peter Welch (D-VT) introduced H.R. 6424, the Social Security Survivor Benefits Equity Act, which proposes raising the lump-sum death benefit to $2,900 and indexing it to inflation.
The bill has been referred to the House Committee on Ways and Means, but has not been enacted. That's why families making arrangements in 2026 must still operate under the $255 limit.
Other Financial Assistance Options
Since the $255 benefit won't fully cover cremation costs, consider these alternatives:
Survivor benefits (monthly payments)
These are separate from the death benefit. Surviving spouses and dependent children may qualify for monthly payments based on the deceased's work record. Contact Social Security for eligibility details.
Veterans benefits
If your loved one served in the military, VA burial benefits may help cover costs. For deaths on or after October 1, 2025, veterans may qualify for a $1,002 burial allowance for non-service-connected deaths, plus a $1,002 plot allowance (total up to $2,004). Service-connected deaths may qualify for up to $2,000.
State assistance programs
Some states offer burial or cremation assistance for low-income families. Eligibility and amounts vary by state. See the Medicaid section below for Kentucky and Indiana details.
Life insurance assignment
If your loved one had a life insurance policy, some cremation providers can work with the insurance company. This allows families to avoid paying out of pocket while waiting for the claim to process.
Payment plans
Some cremation providers offer payment arrangements to help families manage costs. Magnolia Cremations accepts Affirm financing with 0% APR available for qualifying applicants.
Can You Set Aside Money for Cremation If You Receive SSI?
Yes. SSI recipients have two ways to set aside money for cremation without affecting their benefits: irrevocable burial contracts (no dollar limit) or a designated burial fund (up to $1,500).
If you receive Supplemental Security Income (SSI), you must keep your countable resources below $2,000 (or $3,000 for couples). Money designated for burial costs, however, does not count toward that limit.
Irrevocable Burial Contracts: No Dollar Limit
An irrevocable burial contract is a prepaid arrangement with a funeral home or cremation provider that cannot be refunded. Because you give up access to the funds, SSI excludes the entire amount from resource calculations, with no dollar limit.
This makes irrevocable contracts a common strategy for SSI recipients who want to cover their cremation costs in full. Prepaying locks in today's price and removes the burden from your family.
The $1,500 Burial Fund Exclusion
If you prefer to keep your options open, SSI also allows you to set aside up to $1,500 in a revocable burial fund. This money must be identified as a burial fund and kept separate from your other accounts. Many families open a savings account and name it "Burial Fund" to make the designation clear.
The $1,500 exclusion is available for each person in a household. A married couple receiving SSI can therefore set aside $3,000 total ($1,500 each) without risking their benefits.
Interest earned on the fund is also excluded, provided the interest remains in the account.
What Counts as a Burial Fund
- Cash in a designated account
- Revocable burial contracts
- Other amounts set aside for burial expenses
Burial Spaces and Items: Also Excluded
In addition to the options above, burial spaces and burial-related items are excluded separately. These include burial plots, crypts, caskets, urns, headstones, and opening/closing fees. These items have no dollar limit as long as they are intended for you or your immediate family.
Options for SSI Recipients
Magnolia's Essential Cremation Package starts at $995 for families within our primary service area. For cities farther from our Jeffersonville crematory, additional transportation costs may apply. You can prepay with an irrevocable contract to cover the full amount, or set aside funds in a burial account. Contact us to discuss options that work within SSI guidelines.
For official guidance on SSI burial fund rules, visit the Social Security Administration's Program Operations Manual.
Does Medicaid Help Pay for Cremation in Kentucky or Indiana?
It depends on which state you live in. Eligible families in Indiana may receive up to $1,200 for cremation or $2,000 for burial costs, whereas Kentucky has no statewide program, though some counties provide limited help for indigent residents.
This difference matters for families trying to cover final expenses. Understanding what your state offers can help you plan ahead or identify resources after a loved one passes.
Indiana Medicaid Burial Assistance
Indiana's Medicaid Burial Assistance Program, governed by Section 4800 of the Medicaid Eligibility Policy Manual, provides up to $2,000 for eligible residents:
- Funeral/cremation expenses: Up to $1,200
- Cemetery/final disposition expenses: Up to $800
The program covers individuals who were enrolled in qualifying Medicaid categories at the time of death, including Aged (MA A), Blind (MA B), or Disabled (MA D, MASI) programs. Many nursing home residents and people receiving SSI-related Medicaid qualify.
How outside contributions work:
Indiana uses a formula that allows families to contribute toward funeral costs without reducing the Medicaid payment, up to certain caps. As of July 2025, families can contribute up to $2,700 toward funeral expenses without reducing the $1,200 state payment. (This cap increases to $2,800 on July 1, 2026.) If family contributions exceed the cap, the excess reduces the Medicaid payment dollar-for-dollar.
Source: Indiana Medicaid Eligibility Policy Manual, Section 4800
How the program works:
Only funeral homes can file the application. Families cannot submit claims to the state. Magnolia handles this process for you at no extra cost, verifying eligibility and filing Form #35937 with Indiana FSSA within the required 90-day window.
For qualifying families, the Medicaid benefit often covers most or all of Magnolia's direct cremation cost. In cities farther from our Jeffersonville crematory, such as Fort Wayne or South Bend, the Medicaid benefit still covers most of the cost.
For questions about Indiana Medicaid burial claims, contact: IndianaBurialClaims@fssa.in.gov
Kentucky: No Statewide Medicaid Burial Assistance
Unlike Indiana, Kentucky does not have a statewide Medicaid burial assistance program. The state does not provide funeral or cremation benefits through its Medicaid program, and the 2026-2028 state budget does not include provisions for establishing one.
Some Kentucky counties may, however, contribute toward burial expenses for indigent residents through their local fiscal courts or social services offices. These programs vary by county, and funding is often limited.
Jefferson County Indigent Burial Program:
In Louisville and the surrounding Jefferson County area, Catholic Charities of Louisville administers an indigent burial program in partnership with the Jefferson County Coroner's Office. This program serves those who die without family or funds, and eligibility is restricted to those who lack any resources.
What Kentucky Families Can Do
If your loved one received Medicaid in Kentucky, you can still apply for the $255 Social Security death benefit (if eligible) and explore other options, including VA burial benefits for veterans, life insurance assignment, or county trustee assistance. Magnolia also accepts Affirm financing, allowing families to pay over time with 0% APR available for qualifying applicants.
Comparison: Indiana vs. Kentucky Medicaid Burial Benefits
Benefit |
Indiana | Kentucky |
| Maximum available |
Up to $2,000 |
None (county-dependent) |
|
Funeral/cremation coverage |
Up to $1,200 |
N/A |
|
Cemetery coverage |
Up to $800 |
N/A |
|
Who files |
Funeral home or cremation provider only |
N/A |
|
Filing deadline |
90 days |
N/A |
How to Keep Cremation Costs Affordable
Since Social Security won't cover cremation, here are ways to manage expenses:
Choose direct cremation
Direct cremation is usually the lowest-cost option because it doesn't include embalming, viewing, or a service. The national average for direct cremation typically ranges from $2,000 to $2,500, though prices vary significantly by region and provider.
Compare prices
The difference between the average provider and the lowest-cost provider can exceed $2,000, sometimes in the same zip code. Knowing the right questions to ask when choosing a cremation provider can help you spot hidden fees and avoid overpaying.
Ask for itemized pricing
The FTC Funeral Rule requires providers to give you a General Price List. Compare what's included before making decisions. Add-on costs include death certificates, shipping of ashes, and mileage fees.
Work with a provider who owns their crematory
This eliminates third-party fees that can add to your total. Magnolia owns and operates our private, family-owned crematory in Jeffersonville, Indiana, ensuring your loved one never leaves our care.
Frequently Asked Questions About Social Security Death Benefits
Does Social Security pay for cremation directly?
No. Social Security provides a $255 death benefit to eligible survivors, but this money goes to the family, not to a cremation provider. The benefit doesn't fully cover the cost of cremation.
How long do I have to apply for the $255 death benefit?
You must apply within two years of the date of death. Contact Social Security at 1-800-772-1213 to start the process.
How long does it take to receive the $255 Social Security death benefit?
Most families receive the payment within 2 to 3 months after submitting a complete application. Processing times vary by location and whether all required documents are included.
Can a funeral home or cremation provider receive the $255 payment directly?
No. The benefit is paid only to the eligible surviving spouse or dependent children, not to funeral homes or cremation providers.
What if no one qualifies for the death benefit?
If there's no eligible surviving spouse or dependent children, no payment is made. The benefit cannot be paid to other relatives, friends, or funeral homes.
Are survivor benefits different from the death benefit?
Yes. The $255 is a one-time payment, whereas survivor benefits are monthly payments that may be available to widows, widowers, and dependent children based on the deceased's work history.
Does Indiana Medicaid pay for cremation?
Yes. Indiana's Medicaid Burial Assistance Program provides up to $1,200 for cremation expenses for eligible recipients. The funeral home must file the claim within 90 days. Magnolia handles this process at no extra cost to families.
Does Kentucky Medicaid pay for cremation?
No. Kentucky has no statewide Medicaid burial assistance program. Some counties offer limited help for indigent residents, but availability varies. Kentucky families may qualify for the $255 Social Security death benefit or other assistance options.
Can I save money for cremation if I receive SSI?
Yes. SSI allows you to set aside up to $1,500 per person for burial expenses without affecting your benefits. This money must be kept in a separate, designated account. Interest earned on the fund is also excluded.
What are the VA burial benefits for 2026?
For deaths on or after October 1, 2025, veterans may qualify for a $1,002 burial allowance plus a $1,002 plot allowance (up to $2,004 total) for non-service-connected deaths. Service-connected deaths may qualify for up to $2,000.
Planning Cremation Services in Kentucky or Indiana
If you're planning cremation services in Kentucky or Indiana, Magnolia Cremations offers transparent pricing with no hidden fees. Our family care team is here to answer your questions and guide you through the process.
There’s no obligation and no pressure. Just honest, respectful guidance from people who understand that behind every call is a person, a family, and a life that mattered.
If you’d like to talk, you can reach out to Magnolia through our website or by phone, day or night. We’re here to help you make a calm, confident choice; whatever you decide.
About the Author: Aaron Scott
Aaron Scott is Vice President of Scott Family Services, the parent company of Magnolia Cremations, and a licensed funeral director in Indiana (#FD21100032) and Kentucky (#6880). A native of Jeffersonville, Indiana, Aaron graduated from Jeffersonville High School in 1999, earned his Bachelor of Science from Murray State University in 2003, and completed his funeral service training at Mid-America College in 2005.
Aaron currently serves as Clark County Coroner and holds a leadership role as District 8 Director on the Indiana Funeral Directors Association Board. He brings nearly 20 years of experience to his role, blending professional expertise with a genuine passion for serving others.
Outside of work, Aaron enjoys traveling and spending time with his wife, Alanna, their two children, Cora and Andrew, and their loyal dog, Stanley. His commitment to excellence and community care continues to shape the future of funeral service in Southern Indiana and beyond.
Author bio up-to-date as of January 2026