The loss of a partner or family member, whether expected or a surprise, brings grief and possibly a wide range of other emotions. On top of these emotions, there are many financial decisions to be made which can be overwhelming.
Here are seven tips to help alleviate stress and help you to navigate through this difficult time:
Funeral expenses
A low-cost funeral can start from $5,000 with cremations usually being more cost effective. Check to see if your loved one holds a life insurance policy that pays an advance payment upon death which may cover funeral costs. If you need to wait until your loved one’s Will is settled to receive funds, you can also ask the funeral home if you can be put on a payment plan.
Understand impacts to your financial position
The first thing to do is to take a look at money coming in and going out to see how your cash flow may need to be adjusted to accommodate these changes. Keep track of all the incomings and outgoings you incur.
Next confirm what assets your loved one owned, such as their house, investment properties, life insurance, superannuation, savings accounts, term deposits, shares, managed funds, cryptocurrency, artwork, jewellery, vehicles. These items may be itemised in their Will, but the actual value will probably require some effort on your part or the executor’s part.
Notify services
Once you have a death certificate, notify, cancel or transfer accounts in your loved one’s name so you aren’t paying unnecessary fees. The Australian Death Notification Service lets you notify multiple organisations, including:
- Banks e.g.: own home mortgage, investment property mortgage, credit cards, term deposits and transaction accounts.
- Insurance companies e.g.: car, health, life, home and contents
- Utilities e.g.: gas, electricity, water, phone
- Local council for rates
- Other services, e.g.: gym membership
Look for unclaimed money
In case there are bank accounts, super funds, insurance policies, shares or investments that you’re unaware of, you can use the Government’s unclaimed money search tool to see if there any of these assets in your loved one’s name.
Check if you’re entitled to Government benefits
Have a look at bereavement payments on the Services Australia website. You may be eligible for a lump sum or a short-term payment.
Be kind to yourself
Give yourself the time to get through the grieving process and adjust to your new normal. Here are some 24-hour support lines if you feel talking to someone would help:
Lifeline 13 11 14
Beyond Blue 1300 22 46 36
Seek financial advice
Now that your financial situation has changed, you may need professional advice to address budgeting, managing debt, accessing super and insurance payouts and investing newly acquired assets.
AIA Financial Wellbeing offers affordable, reliable and straightforward solutions for life and health insurance, superannuation, and wealth advice needs. We listen to you first and then we’ll advise, educate and guide you with advice that’s tailored to you.
