Child Insurance Benefits

WHO IS ELIGIBLE?

Dependent children of deceased wage earners are eligible to receive survivor insurance benefits if the wage earner was fully insured or currently insured.

They must also meet the following requirements:

Must be the child or adopted child (legally or under Palauan custom) of the deceased wage earner.
If not the natural or adopted child, there should be proof that the child was dependent upon the wage earner at the time of death or have been living with the wage earner
Unmarried
Under age 18; or between the age 18 and 22 presently attending school; or disabled since before age of 22.

IF A CHILD IS ELIGIBLE FOR SURVIVOR BENEFITS, HOW MUCH CAN HE RECEIVE?

If there is no other beneficiary under the same deceased wage earner, the minimum monthly benefit that a child can receive is $98.00.

If there are other beneficiaries, each child is entitled to receive 15% of the basic benefit applicable to the deceased wage earner. This is subject to the Earnings Test.

HOW CAN I APPLY?

To apply, please fill out an Application for Survivor Insurance Benefits or Application for Survivor Disabled Child Insurance Benefits and submit it along with the required documents as listed in the application.

HOW ARE MONTHLY CHILD INSURANCE BENEFITS CALCULATED?

The "Basic Benefit" is a monthly payment that is one-twelfth (1/12) of the total of:

21.5% of the first $11,000 of cumulative covered earnings; and
2.9% of cumulative covered earnings in excess of $11,000 but not in excess of the next $33,000; and
1.5% of cumulative covered earnings in excess of $44,000

Below is a sample of how to calcuate benefits for an eligible retiree with cumulative covered earnings of $80,000:

FORMULA:	TOTAL:
$11,000 x 21.5%	$ 2,365.00
$33,000 x 2.9%	$ 957.00
$36,000 x 1.5%	$ 540.00
TOTAL:	$ 3,862.00

BASIC MONTHLY BENEFIT:
$3,862.00 / 12 mos.
= $321.83

CHILD INSURANCE BENEFIT:

$321.83 x 15% = $48.28 per month

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