Losing a spouse or life partner is one of life’s most tragic realities a person will endure.
Statistics Canada has found that, at birth, the life expectancy for a female is 4.6 years longer than for a male; at age 65, it is 3.2 years longer.
Although there is no guarantee how long each of us will live, we are all assured the feeling of loss and sadness when we lose someone we love. Many men and women try to cope by taking charge of settling outstanding financial commitments. For many widows and widowers, this can be an unsettling and stressful experience.
There are survivor benefits to consider when reorganizing income:
- If your spouse contributed to CPP and are a lower income senior, you could be eligible for the Survivor Allowance/Pension.
- The Canadian Pension from the deceased spouse’s employer may continue, but most likely at a reduced rate.
- A one-time Death Benefit will be paid; however· The deceased’s Old Age Security Benefit will not be paid past the deceased’s date of death.
In the case of retired couples, the household income could be lowered significantly if one spouse dies.
The loss of an income or pension can quickly accelerate one’s debt. Coupled with funeral and burial costs, a person would easily and quickly become financially crippled.
While it is highly recommended that a survivor continue to pay credit payments following the death of a spouse, he or she should not make any harsh decisions about dealing with unresolved debt. Securing debt to a home investment, with a Home Equity Line of Credit, (HELOC) could very well put one’s home investment into jeopardy, should any payments lapse.
If you have lost a spouse, and have unsettled debt that is interfering with the quality of life, you need to resolve your finances ~ now.
Consult with a professional credit counseling expert to assess all of your debt relief options..
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