Dependent Child Survivor’s Benefit

The Dependent Child Survivor’s Benefit is available when either a minor LCBA Benefit Member becomes orphaned, or an LCBA Benefit Member is survived by an orphaned dependent child or children. There are two Benefit payments available: a monthly payment and an academic scholarship.

Eligibility

Agency members are NOT eligible for this benefit.

On the date of death of either the Member or the Member’s last surviving parent, whichever is applicable, both of the following shall apply:  

  • The Member’s LCBA insurance coverage has been in effect at least 2 years prior to the death, unless it is an accidental death; and

  • The LCBA insurance or annuity coverage in effect must be one of the following:

    o   $10,000 or more permanent life insurance,

    o   An annuity with an account value of at least $5,000,

    o   A term policy with at least $100,000 face amount, or

    o   A Medicare Supplement certificate.

If a Member, who is a single parent, dies and has sole legal custody of a Survivor, the other parent must be deceased or otherwise not legally responsible to provide financial support.  If a Member who is a single parent remarries, he or she will be considered a “single” parent unless the new spouse adopts the Survivor.  Children of the new union would be subject to the two parent family eligibility requirements. 

Definitions

Minor is a person under the age of 18 years. 

Survivor is the eligible recipient of the Dependent Child Survivor’s Benefit. 

Member is an LCBA Benefit Member who is covered under an insurance certificate or annuity issued by LCBA. 

General Guidelines

LCBA’s Dependent Child Survivor’s Benefit provides payments as follows:

  • To a Minor who is either

    ◦ the biological child or adopted child of a deceased Member and the Member was the last surviving parent of the Minor, or

    ◦ the biological child or adopted child on the date of death of the Minor’s last surviving parent and the Minor is a Member.

  • A monthly payment of up to $250 for each Survivor will be paid to a qualified guardian for the care, maintenance and education of a Survivor.

  • The total maximum cumulative payments for one family is $50,000 (this includes the scholarship payment outlined below). If the maximum monthly payment per Survivor would be exceeded before the youngest Survivor is age 18 years, the monthly benefit may be adjusted accordingly by LCBA.

  • One allowance is paid for each Survivor, regardless of the number of LCBA certificates or annuities on the life of the Member.

  • Income continues until age 18 years and may be extended to age 21 years if a Survivor is permanently disabled, physically or mentally.

  • Survivors qualifying for the monthly payment will also have the premiums paid on existing LCBA certificate(s) on their own life until a Survivor either: Reaches age 18; Marries; Enters military service; Is legally adopted; or Receives a Scholarship as a Survivor. The premium payments are not included in the $50,000 maximum payout.

  • Benefits to a Survivor shall commence on the date that an application for Benefits is received by LCBA. No benefits shall be paid retroactive to the date of receipt.

LCBA’s Dependent Child Survivor’s Benefit also provides a post-secondary scholarship as follows:

  • To a Survivor who is either

    ◦ the biological child or adopted child of the deceased Member and the Member was the last surviving parent of the Survivor, or

    ◦ the biological child or adopted child on the date of death of the Survivor’s last surviving parent and the Survivor is a Member.

  • Each Survivor may receive a maximum benefit of $1,800 per year towards post-secondary education. There is a maximum cumulative payment per Survivor of $7,200 for a four-year program or $3,600 for a two-year program, subject to the $50,000 family maximum explained above.

  • A Survivor must be accepted at or attending a four-year or two-year accredited college, university, technical or vocational program, on a track to earn either a bachelor (four-year program) or associate (two-year program) degree.

  • A Survivor who is receiving this scholarship is not eligible for the LCBA Insurance Scholarship Program or the regular LCBA Post-Secondary Scholarship Program. A Survivor may apply for these LCBA Scholarships once the $50,000 family maximum has been reached.

Scholarship will terminate if:

  • Survivor does not maintain scholastic achievement and personal standards set by the educational institution; or

  • Survivor is awarded a full scholarship from another source including a Military Academy scholarship.

*LCBA reserves the right to change or alter the terms of its member benefits at any time.