Steps to Take When the Breadwinner of the House Passes Away Unexpectedly

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Accidents occur every day and there are many times when people pass away unexpectedly and leave their families with the unfortunate dilemma of figuring out how they are going to make ends meet.

Many families live paycheck to paycheck and when the breadwinner in the house passes away, it can make it very difficult for the family to stay afloat until the insurance money arrives or other adults in the home are able to get a job and start receiving a paycheck.

If the breadwinner in your household has recently passed away unexpectedly, learn what steps to take to keep your head above water until you get back on your feet financially.



Get a Death Certificate for the Person that Has Passed Away
 
When someone passes away, a death certificate is issued after the person is proven to have passed. You need to visit the vital statistics office in your area to get a copy of the death certificate. You need this in order to prove to the life insurance company that the person is no longer living so that they can start filing the necessary paperwork to get a payout from the life insurance policy.

Contact the Life Insurance Company
 
If you were the beneficiary of the life insurance policy, contact the company right away. Provide them with a copy of the death certificate and answer any questions that the agent may have. It may take a few weeks to a few months for the payment to be made to you though, so you need to take actions in the meantime to ensure that you are able to make ends meet.

Cut Back Where You Can
 
When you no longer have a source of income coming in, you need to cut back where you can to make the most of the little bit of money that you have left. Don’t go out to eat, get rid of any frivolous bills that you can, such as cable and internet and try to save money whenever possible on groceries by shopping sales or using coupons.

Talk to Your Debtors About the Situation
 
Contact all of the companies that you owe small debts to each month. You want to let them know what has happened and ask them if they can defer the payments or allow you to pay a lesser amount until you are able to get a job or the insurance money arrives.

Most companies are more than willing to work with people during extreme situations if you don’t wait to the last minute to explain the situation to them. It’s best to contact the companies before you are behind in payments.

Write a Hardship Letter to Your Mortgage Lender
 
Mortgage loan payments are typically very high and can be nearly impossible to pay when the breadwinner in a household that is living paycheck to paycheck passes away. It’s best to write a hardship letter to the lenders that you owe large payments for each month, like your mortgage lender, to ask to have the payments deferred for a few months until you get back on your feet. Write a sample hardship letter and allow someone close to you to read it to make sure that it makes sense and that you don’t offer too much information in it.

You want to be sure that you let the company know you cannot afford to make any payments in the near future and that you don’t make any promises about making larger payments in the future. It’s important to know that deferring the payments means that they are pushed back a few months, not that they are forgotten altogether. You still mustpay the same amount of money no matter what, they just provide you with extra time togather the money that you owe.

Sell What You Can
 
Go through your house and get rid of anything that you no longer need. It’s best to pay as many of the bills as you can and getting rid of itemsthat you don’t use or don’t need can be a great way to get money in a hurry. You could hold a yard sale, sell things on social media or even go to a pawn shop to pawn things such as electronics and jewelry for quick cash.

Get a Title Loan
 
If you own your vehicle outright, you could get a title loan on it. A title loan is where you take the title to the lender and give it to them, in exchange for a lien on your vehicle. They then give you a loan based on the value they assess the vehicle to have.

You have a specificamount of time to pay back the loan before they are able to take ownership of the vehicle. This can be a great option if you know for certain that you are going to be getting an insurance payment within the next few months because most title loans give you quite a few months to pay back the money.

Start Working Right Away
 
The most important thing you can do is get a job. If you have children that are too young for school, consider babysitting other people's children to make money. If you don’t have a vehicle, you could always work at a store within walking distance. There are even online employment opportunities that you could use to make money until the insurance payment arrives.

It’s important to do everything that you can to get on your feet financially after a loved one dies. It can be quite traumatic to lose someone, but you need to be strong for yourself and your family if you want to be able to make the grieving process as easy as it can be for everyone involved. If you were to lose your house or your car, that would only make the situation worse.

Take the time to talk to your loved ones about the situation because there is a good chance that someone may be able to give you a little bit of help during your time of need if they know that you can repay them later on down the line.

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