Maintaining financial wellbeing through bereavement

Published on Apr 2, 2023

When a loved one passes away, their absence is felt in many ways. A bereaved person may long for their presence—the sound of their laughter, the feel of their loving embrace—and mourn the life they shared with them.

In essence, beneficiaries are beginning the heart-wrenching process of creating a new life with their loved one as a memory instead of a participant, and their financial life is a major part of this transition.

Especially if the person who passed away earned all or part of the household income, decisions need to be made in order to create financial stability in the short-term and to plan for long-term security.

Helping a beneficiary reach their financial goals is a profound way of providing care and support during one of the most difficult and bewildering times in a person’s life.

Offering support in the immediate aftermath of loss

After a loved one dies, their life insurance policy is there to provide financial security for their family.

Life insurance benefits are non-probate assets, meaning they don’t have to go through the court-supervised process of probate, which can take months or even years. Thus, they are particularly helpful in the difficult weeks and months after a loss because families can access the funds quickly.

That means that beneficiaries will be contacting their life insurance company early in the process of settling a loved one’s affairs.

Just when they need help the most, beneficiaries often have trouble finding it.

This is a time when many bereaved people may be dealing with governmental agencies and corporations whose processes are complex and whose representatives are unresponsive or downright unhelpful.

Empathy’s Cost of Dying Report, which surveyed 1,485 Americans who had experienced a recent loss, showed that a majority of respondents found that everything from planning the funeral to going through probate took longer than they expected.

Just when they need help the most, beneficiaries often have trouble finding it. Meaningful support and care at this point in their bereavement experience will be remembered.

Examining all life insurance options

It is important for the beneficiary to know that the support life insurance provides can come in a number of ways. Monthly payments can provide peace of mind over a long period of time, whether that is in the form of a specific income payment, a lifetime annuity, a fixed period annuity, or a retained asset account.

Particularly if a grieving family is overwhelmed—and has little or no time to devote to managing and investing a large sum of money—then a payment plan may be the better way to go for their emotional and financial wellbeing.

Another benefit to extending the relationship financially is that the beneficiary has the option to take advantage of greater levels of care through their life insurance provider.

As the saying goes, a penny saved is a penny earned. With personalized support, beneficiaries can avoid costly mistakes throughout the process of settling a loved one’s affairs: everything from selling their loved one’s home, going through probate, and paying taxes.

Through a trusted relationship, beneficiaries can rely on their life insurance provider to help them make the most of what they have. And in the hardest times, the deepest bonds are formed.

Bring Empathy to your company

Everyone deserves help after loss. Join us to find the support your families need.