We don’t like to think about losing a loved one, nor do we like to think about the question of money when we’re faced with the possibility. We don’t want to cheapen the huge emotional impact of loss and grief, nor appear mercenary. However, we need to be practical. Studies show that seven in ten people are financially unprepared for the loss of a partner. With only two in five people having a will, we’re not providing enough preparation for those who depend on us. If loss comes to your family before you have the time to prepare, how do you make sure you can survive?
The initial costs
The costs of a funeral can vary widely, but there’s no doubt that they tend to often be a large expense. We want to honor those that we love, which today means that families tend to spend from $8000 to $10,000 on funeral arrangements. Cremations can be much less expensive, but most families take into account the wishes of the deceased. The casket, services of a funeral director, the ceremony, grave space, and headstones are costs that need to be considered. The single best way to prepare for much of these costs is through life insurance. The earlier that you and a loved one start contributing to a plan that covers costs after death, the easier it will be for the family. A frank discussion about the practicalities of a funeral and the alternative of a direct cremation can also help you save a lot of money.
The estate and will
With one two in five people having a will, even those with considerable assets are in danger of seeing their estate left up in the air. The best protection of any plans you make to ensure your loved ones are taken care of is to establish a will. However, they don’t always go as smoothly as we would like. If the estate is over a certain threshold, is complicated, there are any dependents left out of a will, or even if a will is missing or its validity contested, being prepared for probate is essential. Firms like the Dave Burns Law Office can play an important part of untangling a messy estate dispute, making sure that the plans of the deceased are stuck to as best as possible. It’s important to make sure that you have someone with your future security and best interests at heart.
The reduction of income
Life insurance and a successfully executed will can provide some relief in the short-term and provide security. Even still, the stresses of living with a reduced income aren’t to be downplayed. It’s time to take a full audit of your finances and expenses with the full awareness that you are not likely going to be able to live the same lifestyle as before, as suggested at CNBC. You have to look at services and subscriptions taken out and think of whether they really justify the costs for one person less. You might even have to consider downsizing your home by selling up or looking to rent a smaller property.
Any loss is a tragedy and it will have emotional impacts felt long after. However, to ignore the question of money is to only invite more strife through financial difficulty. While you still have time, consider asking a financial planner how to ensure that you and your loved one can take care of one another for the future.