Spending Life Insurance: Tips for Beneficiaries

When you're in grief or adjusting to life without your loved one, it's best to stick to a plan. Focus on the day to day tasks of life. This will be a lot easier if you have a good idea of how to budget the death payout.

USE THESE 10 TIPS TO PLAN AND SPEND MORE WISELY

#1: TIE THE LOOSE KNOTS AND DOT THE I'S

You'll want to close any accounts and credit cards that your benefactor may have had. Look through all the documents and financial accounts to find out what these are and get all the work out of the way.

Here's a list of what most people have to close:

• Credit cards
• Bulk food memberships
• Club memberships
• Gym membership
• Newspaper and magazine subscriptions
• Cell phones

#2: FIGURE OUT WHAT THE SOCIAL SECURITY SITUATION IS AND SETTLE IT

You may have some paperwork to do if you wish to collect on the social security. The government will supply a representative to help you. The number to contact is (800) 772-1213. Have a look around at SSA.gov for more information.

#3: MAKE SURE THE BENEFACTOR'S EMPLOYERS MEET OBLIGATIONS

If you are a spouse or legal partner, you may be able to collect benefits. You should review any documents or an employee handbook to see the company policies.
Ask yourself:

• Are there any due paychecks, unpaid bonuses, or commission?
• Did the company have a life policy or any sort of insurance?
• Can you continue receiving medical insurance?

#4: MAKE A LIST OF RECURRING COSTS

To determine how much money you should allot for each month, start by listing all of the recurring costs you will have. Energy bills, food, mortgage payments, taxes, insurance payments, and so forth.

#5: ASK FOR HELP

Take friends and relatives up on offers for help. Even a break from chores will help.

#6: KEEP UP APPEARANCES

Take it easy on yourself, but don't retreat from the world entirely. After some time, it will help to do the little things, like getting haircuts and doing hygiene rituals. Get out and take walks.

#7: CONSIDER GRIEF COUNSELING

A regular grief therapy session can be a good investment. Instead of struggling on by yourself, it is best to learn how to adjust with the help of a professional. Your loved one wouldn't want you stuggling any more than you need to, so seek out a good therapist.

#8: TAKE A VACATION

It's a wise use of resources. Use the time to breath, cry, adjust, rediscover yourself, build a friendship, and have fun. The world will be easier when you get back.

#9: SETTLE YOUR OTHER INSURANCE ISSUES

If you will not continue receiving the previous health insurance, make arrangements for a new policy. Medicare may be an option for you.
If you and your spouse had joint medical coverage separate from an employer, make sure you inform the insurer of the death and arrange a new policy.

#10: THINK ABOUT YOUR LIFE INSURANCE

Make sure your life insurance is all set. If you realize mistakes were made, make sure you don't make that mistake for your loved ones. Life insurance is about doing your best to prepare others for the future.