Vancouver organising officials say Nodar Kumaritashvili's family qualifies for a death benefit.
VANOC took out insurance on the about 5000 members of the Olympic family, including athletes, for the Games.
It's unknown when Kumaritashvili's parents will receive the money.
The International Luge Federation already has donated about $US14,000 ($NZ19,724) to the family, and other private fundraising efforts are under way for Kumaritashvili's survivors as well.