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Your Benefits when You're Newly Widowed

How to handle health plans, HSAs, life insurance and more

When you lose your spouse, planning ahead may be the last thing you want to do. But taking stock of your health and financial benefits is one of the first things you should do. These tips can help you move forward.

First: Make sure your health is covered

If you lost your health planhealth plan
A health plan that you buy or that is provided by your employer. It pays for health care services. I... more when you lost your spouse, you do have options.

• Continue your coverage with COBRA. If you had health coverage through your spouse’s job, contact their employer and health insurer. They can help you figure out your next steps. If you find out that you can’t keep the employer plan, COBRA can help. You may be able to continue coverage for up to 36 months.
  
  There’s one drawback. You pay the premiumspremiums
  The amount charged by a health insurer for a health insurance policy. If you have a health plan thro... more for COBRA benefits — and it can be pricey. Before you sign on for COBRA, just make sure it’s the right choice for you. A good resource for answers is the Department of Labor COBRA site.

• Insure yourself with an individual health planhealth plan
  A health plan that you buy or that is provided by your employer. It pays for health care services. I... more. Your might decide it’s better to buy an individual plan directly from an insurer. The plans come in all shapes and size, so it’s easier to find a plan that fits with your life. You can research a few plans here.

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Determine your benefits situation

Which situation best fits your life?

• Were you covered under your spouse’s health planhealth plan
  A health plan that you buy or that is provided by your employer. It pays for health care services. I... more? You’ll need to find new coverage. But you do have some options to think about.
 
• Was your spouse covered under your employer health planhealth plan
  A health plan that you buy or that is provided by your employer. It pays for health care services. I... more? Let your human resources department know that your spouse passed away. A representative will explain what you need to do to remove your spouse from your health planhealth plan
  A health plan that you buy or that is provided by your employer. It pays for health care services. I... more. Ask them to check beneficiaries for any plans or policies you have through your job.  
 
• Did you and your spouse have a family health planhealth plan
  A health plan that you buy or that is provided by your employer. It pays for health care services. I... more? Call your insurance company. They’ll tell you what you need to do to remove your spouse from the health planhealth plan
  A health plan that you buy or that is provided by your employer. It pays for health care services. I... more. Don’t forget to ask how this change will affect your coverage and monthly costs. 
 
• Did you and your spouse have separate health plans?  Call your spouse’s employer or insurance company to let them know your spouse has passed. You have no worries about your coverage. But if any of your dependents were covered under your spouse’s plan, you will need to take action. If your health planhealth plan
  A health plan that you buy or that is provided by your employer. It pays for health care services. I... more is through your employer, talk to your human resources department. Ask if your plan will cover dependents. You can also ask about COBRA or an individual family plan.

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Your Social Security rights

If your spouse worked long enough to qualify, you may be able to get Social Security benefits. The benefitbenefit
The term "benefit" may refer in general to a health plan (your "benefits"), specifically define the ... more varies depending on your age, situation or dependents. You can find out more about survivor benefits here.

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How to handle the HSA

Did your spouse have a health savings account (HSA)health savings account (HSA)
This savings account allows people to pay current health care costs or save for future expenses. To ... more? An HSA helps you save and pay for certain health care costs. The money you put in an HSA is tax-deductibletax-deductible
A set amount that you must pay for your medical services before the health plan starts to pay.... more. And it also earns interest tax free. If your spouse had one, they had to choose a beneficiary.

• If you are the beneficiary: Then the HSA is yours. You can use the HSA for your eligible health expenses. Or to pay for eligible services your spouse had before his or her passing. You can also withdrawal cash from the HSA. Just note: It will be taxed, and you could be charged a penalty.
  
• When someone else is the beneficiary: If your spouse chose someone else to get their HSA funds, the account stops being an HSA. The account is now taxable, and the person must include the HSA’s fair market value in their yearly income. 
   
• If the HSA goes to the estate: The value of the HSA is included in your spouse’s final income tax return.

To learn more about HSAs, visit the U.S. Treasury and Internal Revenue Service websites.

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How to handle the FSA

Did your spouse have a flexible spending account (FSA)flexible spending account (FSA)
A FSA is an account tied to an employer-sponsored health plan. It can be used to pay for medical exp... more? With an FSA, money is taken from your paycheck before it’s taxed. Then it’s put in an account that you can use to pay for eligible health care expenses like copays.  The money you put in an FSA must be used within the same year. If not, it goes back to your employer. You also lose any unused funds if you change or lose your job before the year is up.

Once your spouse passes away, his or her FSA closes. However, you can use the FSA to pay for eligible services he or she, or any dependents received before your spouse’s death.

You also have options if you were covered under your spouse’s health planhealth plan
A health plan that you buy or that is provided by your employer. It pays for health care services. I... more and get COBRA benefits. As a COBRA qualified beneficiary, you may be able to use the FSA to pay for eligible services you get after your spouse’s death.

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Filing for life insurance benefits

First contact your spouse's life insurance carrier. They'll walk you through the claimclaim
Information submitted to a health plan to request payment for medical services provided to a person ... more process. It's a good idea to have a copy of the death certificate and insurance policy on hand.

Most companies make payments to the beneficiary in a lump sum or in installments. Just keep in mind that life insurance benefits aren't taxable - but any interest paid on those benefits can be taxed. It may also take a few weeks to get payment.

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Gather important paperwork

This checklist can help you keep track of what you need to do — and what’s already been done.

Here’s the paperwork you’ll need:

• Death certificate
• Insurance policies
• Social Security numbers
• Retirement plan information
• Marriage certificate
• Birth certificates for any dependentdependent
  A child or spouse who gets health insurance coverage through your plan. Often times there are limit... more children
• Company benefits booklet
• Military discharge papers
• List of all property and assets
• Will, trusts or other estate documents
• Tax documents
• Financial statements for retirement, bank and brokerage accounts
• Stocks and bonds certificates
• Deeds

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First steps, next steps

• Collect important papers
• Contact your spouse’s employer
• Consider asking a lawyer for help managing the estate and other affairs
• Ask the bank to release any money in joint bank account(s) to you
• Decide which account you’ll use to pay for funeral and other expenses
• Make sure you have enough cash to cover expenses
• File claimclaim
  Information submitted to a health plan to request payment for medical services provided to a person ... more(s) for life insurance benefits
• Send a written statement to all insurance companies and creditors letting them know of your spouse’s death
• Apply for government benefits, including any social security, military and veteran benefits
• Review your spouse’s employer benefits
• Go over current billing statements and pay any pressing bills to avoid late fees and extra interest charges
• Review safety deposit box and key information
• Update wills and beneficiaries
• Review retirement plans and accounts
• Work on an investment plan for your needs

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