Step 1 Establish Goals
Step 2 Gather Data
Step 3 Analyze & Evaluate Your Financial Status
Step 4 Develop a Plan
Step 5 Implement the Plan
Step 6 Monitor the Plan & Make Necessary Adjustments
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Financial Planning For Death
By Kim Carolan
Most people do not like to think about dying. Even while dying, most people do not want the end to come. Sometimes, in an effort of trying to forget about "the end", people will forgo important details related to their death, such as proper financial planning for those left behind. However, to show love to those left behind, we need to financially plan for when we are no longer alive.
According to the article, Economic Crisis Heightens Financial Fallout for Bereaved, "One in five people fall below the official poverty line following the death of their partner." The article went on to say that women tend to be affected more than men, although men can be affected. What does this say, though? People have a 20% chance of being not just poor after a spouse's death, but below the official poverty line, especially if you're a woman.
According to the US Census Bureau, a person (such as a widow or widower) with no children at home under age 65 is in poverty if their income falls below $11,201! Now, I'm not sure about you, but if I only made $11,201 or less per year, I'd be eating lots of Top Ramen! The thresholds are different based on your number of dependents and your age, but you get the idea that the official poverty line is quite, for lack of a better word, poor!
So 1 out of 5 widowed people make less than $11,201 per year following their spouse's death (assuming they are under 65 living alone). What about if the widowed person had children? Then the official poverty line would states that the mom with two kids would make less than $17,346 per year--that still sounds like lots of Top Ramen, skipped meals, a scary apartment and shopping at Goodwill. But that is what someone making $8.33/hour working full-time can expect to make in a year!
So how can a person avoid having their widowed "better half" in financial ruin? Lessons I have learned have included the following:
• Meet with a financial planner prior to death. Ideally, it would be best to draw up a plan while healthy, but if you are dying, no time is better than the present! This can save your spouse a lot of "grief" after your death.
• Make sure that all of your beneficiary designations are correct.
• Make sure to be adequately insured. Every situation is unique, so it is important to talk with an insurance professional about what is important for you and your family.
• Talk with your spouse about a contingency plan after your death so that there is less "guesswork" for them to do alone.
• Depose of assets while you are still alive and can make the decisions together. If, for example, a house needs to be sold no matter what after your death for your spouse to cover expenses, then work on getting the home ready for selling currently.
• While you can, help your spouse get ready for the workforce if they have been staying at home or help them improve their skills if their salary/retirement income is less than necessary to cover expenses. Help them now with writing a resume, cover letter and/or signing up for college classes/continuing education.
• Stay educated about changes for benefits through the government. Many people do not realize that their spouse may not receive survivor benefits from the Social Security Administration (SSA) while others did not realize that the SSA even paid any benefits other than retirement. Stay savvy about what your spouse may or may not receive.
Do not let your spouse be another statistic when facing your death. Instead, take proactive steps today, whether healthy or sick, to taking care to make sure that your spouse will have enough to live off of when you have died.
References
Economic & Social Research Council (2009, June 21). Economic Crisis Heightens Financial Fallout For Bereaved. ScienceDaily. Retrieved June 26, 2009, from http://www.sciencedaily.com/releases/2009/06/090621143219.htm
Social Security Administration. (2009, April 1). Widow, Widowers and Other Survivors. Retrived July 9, 2009, from http://www.ssa.gov/ww&os2.htm
US Census Bureau (2008). Poverty Levels. Retrived July 9, 2009, from US Census Bureau website.
Kimberly Rose Carolan is a writer and speaker about grief issues since her father's death to skin cancer. She is the author of Walking through the Valley of the Shadow of Death, a book about the holistic effects of grief, how to grieve well and how to help those grieving around us. She has a B.S. in Business Administration from Southwestern College. For more of her articles, check out her blog at http://walkingthroughthevalleyoftheshadow.blogspot.com
Article Source: http://EzineArticles.com/?expert=Kim_Carolan
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Term Life Insurance - The Financial Effects of Smoking
By Lou Del Ricci
Smoking can affect Pennsylvania term life insurance rates in a rather expensive manner. It common knowledge that a smoker will generally pay a higher rate than those who choose not to smoke. The chance of acquiring a life threatening disease is much higher with tobacco usage. Life insurance companies compensate for this by "rating up" a policy to cover the risk. It's worth mentioning that some carriers will not raise your rate if you smoke an occasional cigar (i.e. once a year for a new born baby).
Depending upon when you quit smoking, there will be different classifications. If you have been without the use of tobacco for five years or longer you'll received the best rate available, which is usually "preferred plus". If the amount of lapsed time is three years then the rating would be "preferred". The "standard" rating would apply if there was no smoking for more than one year. Please remember that if there are other medical conditions, besides the use of tobacco, then the rate will also be affected.
There is a temptation to lie on the application. Please be aware that:
1. Life insurance companies conduct an exam which includes a urine sample that would detect the use of tobacco.
2. If you were to falsify the application and the insurance company finds out they could cancel the policy. This would be quite unfortunate if death occurred and payment was withheld.
I don't want to sound like I'm preaching but discontinuing your smoking habit will pay dividends in more ways than your life insurance premiums. Your overall health and feeling of well being will most certainly be enhanced. Not to mention the money that'll be saved from not having to stop at the local grocery store for cigarettes.
Simply put, Pennsylvania term life insurance will be much more affordable if you STOP SMOKING.
For more information on plans and rates I recommend the following website http://www.topratedplans.com
Article Source: http://EzineArticles.com/?expert=Lou_Del_Ricci
Getting the Right Life Insurance Policy
By Michael Ezie 
A Life insurance policy is a deal between an insurance company and the insured which assures to pay out a certain amount to your beneficiaries in the occasion of your death.
The advantage from a life insurance policy is not for you. It is to give for your loved ones, but after you have gone. After your death, the money is paid to those who depend on you to provide them a protected standard of living, which they might lose if you should die. This is money when they need it the most, with no income tax or publicity.
When it comes to buying life insurance, determining which type of policy to purchase can be a challenge. But by understanding about the features of available policies and working together with a qualified agent, you'll be able to pick the proper policy to guard your loved ones.
You should bear in mind that your family still needs your income after your death. You want a policy the proceeds of which could be paid out in the form of an income. The best method to do these things is to purchase a life insurance policy to care for the cash needs and another policy that would give income at your death. In either case the most frequently used policies are the 20 year term life, the 25 year term life or the 30 year term life assurance policies.
There are a variety of aspects to think before obtaining a life insurance policy. One of them is a sustained uncertainty about the importance and need for life assurance. It is pertinent for all those who are concerned on the financial future of their family in case of death.
There are a variety of types of life insurance policies customized to go well with the different necessities of various individuals. Relying on the number of dependents and sort of insurance necessities, an appropriate policy can be elected after discussion with financial experts and advisors.
Life insurance policies vary from company to company, and thus the various parameters should be analyzed carefully with the assistance of experts and financial advisors to obtain the best contract.
Getting a life insurance policy is something that you should not rush into. If you are planning to submit an application directly for life assurance, then you may get it easier to make a claim online. All the information will allow you to make the suited decision concerning the best company to get your most appropriate policy from.
If you want to get some excellent resources on life insurance, please visit my site on All about Life Insurance or Life Insurance Policy
Article Source: http://EzineArticles.com/?expert=Michael_Ezie
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