Financial Planning for New Widows

Financial Planning For New Widows

by Willow Editorial Team

IF YOU’VE LOST YOUR LOVED ONE RECENTLY, YOU MAY BE EXPERIENCING “BRAIN FREEZE” BROUGHT ON BY THE GRIEF, AND THIS COULD MAKE ANY SORT OF DECISION-MAKING DIFFICULT, IF NOT IMPOSSIBLE.

However, as you slowly emerge from your “stage 1” deep grief/numb phase of widowhood, you will inevitably enter “stage 2” of widowhood, and that’s when it’s time to take care of business, especially money matters.

Once you’ve got a firm grip on the basics (like where your money is coming from and where it need to go to make sure your bills continue to get paid on time), have retitled your accounts, and had taken a moment to breathe, here are a few other things to consider:

Social Security and Survivor Benefits

Depending on your age and your husband’s history, there are likely some benefits you’re entitled to. These benefits potentially include a one-time Social Security death benefit, Social Security retirement benefits, Veteran’s Administration benefits for military veterans, and employer benefits, if he was still employed.

Were you over age 60 at the time of your spouse’s death? You may additionally be entitled to survivor benefits, but if you wait until your full retirement age of 66, you can claim the full survivor benefit, which is 100% of your husband’s benefit.

Health insurance

Were you covered under your late husband’s work policy? If so, ask about continuing that coverage. If you had your own policy before, notify the company of your husband’s death.

Life insurance

If your spouse had a life insurance policy, and you’re a beneficiary, you’ll need to contact the life insurance company and follow the appropriate steps for claiming the benefit. Generally, the beneficiary will not have to pay taxes on the death benefit.