It can be a challenging and confusing time when a loved one dies. One of the last things you want to deal with is financial matters, but unfortunately, it is often necessary. Legal and funeral expenses can add up quickly, and if your loved one was the primary breadwinner, you might be facing a significant loss of income. It’s no secret that financial struggles can affect mental health. How much worse could it be if it coincides with a loved one’s death.
A few different types of financial resources may be available to you after the death of a loved one. You should be able to know what to expect and how to access these funds with the help of your loved one’s financial planner, accountant, or attorney.
This article will provide information on the different types of financial resources available to you after the death of a loved one.
1. Life Insurance
One of the first places to look for financial assistance after the death of a loved one is life insurance. This is likely the most significant financial resource available to you after your loved one’s death. If they had a life insurance policy, you could use the death benefit to cover any final expenses and other debts or expenses that your loved one may have had.
You must read the fine prints of the policy to determine when and how you will receive the death benefit. Some guidelines have a waiting period before the death benefit is paid out, while others may require that certain conditions be met before the benefit is paid. For example, some life insurance policies will not pay out the death benefit if the policyholder dies due to self-harm.
2. Online Fundraising
Online fundraisers are a legal way to receive financial donations from friends, family, and strangers that can help you cover the costs of a loved one’s death. Websites like GoFundMe make it easy to set up an online fundraiser, and they take a small percentage of each donation made.
What’s good about online fundraising is that you can reach many people with your story and collect donations quickly. The money donated to you is typically available within a few days, which can be helpful if you need to cover funeral expenses easily.
This is also one of the most interactive ways to receive financial assistance if your loved one’s death was unexpected and you struggled to make ends meet. You only have to go online and set up a fundraiser to start receiving donations.
3. Legal Means
Your loved one may have been involved with a case that could have been the cause of their death. They may have been a victim of a wrongful death or personal injury. If so, you may be able to file a lawsuit against the responsible party to receive financial compensation. This can be a long and challenging process, but it may be worth it.
You have to make sure that you get the best attorney to help you with your case. This way, the process would be a lot easier for you.
4. Death Benefits
Certain death benefits may be available to you after the death of a loved one. These include Social Security survivor benefits and benefits from the Veterans Administration. If your loved one was a veteran, you should contact the VA to see what benefits you may be eligible for. You can get in touch with the Social Security Administration for Social Security survivor benefits.
Death benefits claims can be a little complicated. But, you can always ask for help from the Social Security Administration or the Veterans Administration.
5. Retirement Savings
If your loved one has any retirement savings, such as a 401(k) or an IRA, you may be able to use those funds to cover expenses. Retirement savings can be a great way to get the financial assistance you need after your loved one’s death.
However, there may be taxes and penalties associated with early withdrawals from retirement accounts, so speak with a financial advisor before taking any money out.
6. Government Assistance
If you are struggling to make ends meet after the death of a loved one, there are also government assistance programs that may be able to help you. These include programs like food stamps and Medicaid. You can contact your local government office to see what assistance programs are available in your area.
After a loved one’s death, you may be facing many challenges, including financial ones. However, legal and financial resources may be available to you. These include life insurance payouts, Social Security survivor benefits, and more. You can find the help you need to get through this challenging time with careful planning and research.