Death benefits

VR pays death benefits upon the death of a member in good standing. Benefit amounts are subject to family size and whether the person was still in the labour market.

Beneficiaries of death benefits

1. Surviving spouse.
2. Children of the deceased (custodians of children under the age of 18 years) or the one who fully supports the children.
3. Other legal heirs if they carry the funeral costs.

Death benefits

VR pays death benefits upon the death of a member in good standing. Benefit amounts depend on family size and whether the respective individual was still in the labour market.

1. Upon the death of a member in good standing, the amount of ISK 712.000 is paid to the spouse if he/she was married or to the individual who is confirmed as the one who pays for the funeral if he/she was not married.
2. If the deceased leaves a child (adopted or foster child) younger than 18 years of age, the amount of ISK 800.000 is paid for each child, to each child or according to the executive committee’s decision each time to the one who supports a child.
3. In addition, the equivalent amount of the respective individual’s credit balance in the VR Contingency Fund is paid.

Death benefits of ISK 712,000 may be paid in respect of those who retired at the age of 60 or later, provided they had been full members continuously for 5 years before retiring, as defined in Article 3 of VR’s rules. This entitlement lapses 24 months after they become older members, as defined in Article 3 of VR’s rules (entered into force on 1 May 2026):

Example of death benefits

Modified regulations with regards to death benefits became effective on  1 May 2026.

Death benefits due to death of members’ children

The Sick Pay Fund also pays benefits due to the death of members’ children under the age of 18 years, 712.000 kr.