The unexpected death of a provider can have a devastating effect on you and your loved ones. It can be difficult to process the emotional pain, but it’s also important to take steps to manage your finances. Not to worry, there are steps you can take to help you maintain your financial stability. Find out what options you have here.
Losing a family member is difficult enough, but losing the family’s main source of income right on top of that may be even more catastrophic.
While grieving, you will unfortunately still have some financial responsibilities.
Steps you should take
Here are some things you can do:
1. Reduce your spending and make some changes to your budget
Look over your current way of life and your financial objectives. You’ll need to adjust your expectations and lifestyle to the new household budget. You should use your funds to get you through this rough patch.
2. Disperse the Estate
You would want the estate to be distributed to you and your family without any hiccups if your loved one had left a Will. Here’s what you need to do:
Let the Will’s executor know what to do next:
- Do the paperwork necessary to transfer all of your assets and investments in your own name.
- Get in touch with the financial institutions to get the money out of his or her individual or joint accounts.
- The Central Provident Fund Board (CPFB) will contact you if you’ve been designated as the nominee of his or her CPF account.
If there is no Will, the assets must be distributed according to intestacy laws, which means someone will have to apply to the courts to be designated the administrator of the estate.
Talk it over with your loved ones to figure out who needs to step up. The next step is to seek the advice of legal counsel.
3. Combine your insurance coverages
Examine all policies to make sure death benefits are set up and that the correct people are named as beneficiaries. File a claim with your insurers.
To file a claim with your loved one’s Dependants’ Protection Scheme (DPS) insurer (Great Eastern Life or NTUC Income), please get in touch with them directly. How to file a claim and what information the insurance company needs from you will be explained to you.
Note
A death claim must be submitted within a certain time frame. If you have a claim, you should file it as quickly as possible to avoid unnecessary complications. If your claim is valid, your insurer will pay you a lump amount up to the policy’s maximum benefit.
CPFB will get in touch with you about the claim process if your family member has HPS insurance and a current mortgage.
4. Check any unpaid loan balances
Get in touch with your creditors right away if you still owe money from loans or obligations. While this process can be overwhelming and hard to manage during an already difficult time, it is essential to ensure that all financial obligations are taken care of. Make sure you review your finances regularly to avoid any missed payments or late fees. Taking the time to protect and maintain your financial health is an investment in your long-term success.
5. Stretch the funds you have further
You may not be sure what to do with any inheritance or insurance proceeds that have come your way.
It’s important to keep in mind that this figure is intended to cover the family’s regular and future expenses, so don’t be fooled by its size. You might have to pay for your own and your spouse’s retirement, as well as your children’s college expenses and any remaining obligations.
You play a crucial part in ensuring that the funds will last as long as necessary to cover future expenses. If you need assistance managing your money, make a plan and get it.
Helping Out
Not everyone has a nest egg or other assets they may fall back on in times of need. The following groups are available to assist you in your time of need:
Workforce Singapore
Needs assessment, career profiling, training possibilities, and job-matching are just some of the ways in which Workforce Singapore may help you find satisfying employment in Singapore.
ComCare
ComCare is a government program that helps low-income families and individuals. Children from low-income households who are enrolled in child care, kindergarten, or student care centers may be eligible for short- to medium-term financial assistance or fee subsidies.
If you’re in need of assistance, you can get in touch with ComCare or visit your local Community Development Council, Citizens’ Consultative Committee, or Family Service Centre.
Conclusion
It’s never easy to cope with the loss of a loved one, especially when they are the breadwinner of the family. Money worries can add to the burden of grief, but there are steps you can take to protect your finances during this difficult time. Take a moment to consider these steps to help you maintain your financial security.