Bereavement

The death of a family member is a tragic event and the grieving process can be long and emotionally demanding.

Although Australians have the fourth-highest life expectancy in the world, premature death remains a risk that we all need to face.

A death in the family can also present an immediate financial difficulty for family members and other dependants, especially if the deceased person was providing an income.

You should ask yourself who is relying on your income – your partner, children, siblings, others? Your untimely death could have a significant impact on the lives of these people.

What are the financial implications of bereavement on my family?

When a loved one is taken from us the emotional turmoil can be hard to deal with. At such a difficult time, the last thing your family needs to worry about is financial concerns.

The first step is to identify the potential risks to your family and dependants.

Did you have a valid will?
Do they know where it is kept?
How are your assets to be divided among your loved ones?
Are your dependants still financially secure?
How do they cover funeral costs?
What are the capital gains tax implications?

What can I do to minimise the chances of illness?
You can reduce the chances of illness by maintaining your mental and physical health.

Healthy eating is important. Eat lots of vegetables and fruit and reduce your intake of saturated fats and sugars.
Exercise. Do at least 30 minutes of moderate activity a day.
Stress management is key. Learn to manage stress and set time aside for relaxation.
Limit your consumption of alcohol and choose not to smoke.
Medical check-ups are important – you should periodically visit your doctor for:
- blood pressure, blood glucose and cholesterol levels checks
- skin cancer spots
- pap smears and breast examinations (for women)
- prostate and testicular cancer screenings (for men).

How can I manage the risks of bereavement?
There are some ways you can manage or transfer the risks to your family and dependants if the worst happens.

You need to update your will to take into account deaths, divorce, marriages, children and your nominated beneficiaries as part of your overall estate planning.
You should consider taking out insurance to cover dependants and mortgage repayments – any life insurance payout offered through your superannuation fund is usually very basic.
You should ensure proper guardianship arrangements are in place if you have children.