Under death benefits, with a surviving spouse and eligible children, which statement is true?

• A. The spouse receives all death benefits.
• B. The children receive all death benefits.
• C. The spouse receives half, and the remaining half is divided among the eligible children.
• D. The employer pays the remainder.

Answer: (C)

When death benefits are paid to a surviving spouse and eligible children, the plan is typically designed to support both parts of the family. The spouse receives one-half of the death benefit, and the remaining half is divided among the eligible children. This structure ensures immediate support for the surviving spouse while also providing for the children’s ongoing needs.

The other possibilities don’t fit that common approach: giving all to the spouse would deprive the children, giving all to the children would deprive the spouse, and having the employer pay the remainder isn’t how these benefits are funded—the benefits come from the life insurance policy or plan.