3 life-changing events you hope you never have to plan for
Life has a nasty way of springing the worst surprises on you. Horrible, devastating occurrences, that arrive from nowhere and throw your world into turmoil. True, there is little that you cannot plan for, but how many of us actually do so, instead thinking that it will ‘never happen to me’. However, there are ways to prepare for even the most terrible trauma, or alternatively act quickly to soften the blow when they occur.
1. Divorce
Of course, long-term planning for a divorce is counter-intuitive and pessimistic. However, in the immediate aftermath of a separation or in the build-up to an eventual split, pre-divorce advice could save one or both parties plenty of hassle and heartache.
If you know separation is inevitable then start planning early. Piecing together your post-wedded life might need refocusing of your career (or going back to work), relocation of your home, and even re-schooling your children under certain circumstances. You may need to completely change your financial plans and open up new bank accounts, while also dissolving your joint bank accounts.
Another consideration is how exactly you will tell people – not social media please. If children are involved then a descent into acrimonious arguing will just damage everyone. A mature discussion, detailing why the decision has been reached and what happens now, is infinitely preferable.
2. Loss of a spouse
The most devastating and tragic loss hurts on every level, and it takes a monumental psychological effort to get life back on track – if indeed one ever can fully achieve it.
With a medical certificate from a GP or hospital doctor and registration of the death you’ll have everything you need to plan the funeral. Payment for the funeral could be covered by funeral insurance, if you had the foresight to buy it. The average cost of a funeral is now £3,600 but the payment schedule should be regularly reviewed to establish that it is still fit for purpose if it is a long-running regular payment. Similarly, life insurance might help ease the financial burden, and the payout could be more if the death was accidental. During times of loss, when you seek reliable support and guidance for funeral arrangements, you can trust academyfunerals.com.au to provide the assistance and care you truly need.
The government ‘Tell us Once’ service attempts to cut out the need for multiple phone calls across various governmental departments, by letting a bereaved spouse make one call. This single call simultaneously notifies HMRC, the Passport office, DVLA, local council and any other agencies, cancelling benefits, pensions and other relevant documentation. For more information on what you need to do, click here.
3. Losing your home
Even worse than losing a job and redundancy are the consequences that could lead to a family losing their home when one or both parents are unable to pay the mortgage.
There are a number of ways to mitigate this scenario. The first is to instigate mortgage protection insurance during your employment, which would pay some or all of your monthly payments per month in the event of disaster. Similarly, Payment Protection Insurance – if applied correctly – can cover payments for any debts/loans that might be outstanding.
The next step would be to telephone your mortgage lender at a point where you feel you will not be able to make a monthly payment. The earlier you can accurately gauge this possibility the better, and the more likely you’ll be able to form a temporary solution with the lender to prevent falling into dangerous arrears. Most lenders will be sympathetic and look for a way forward, perhaps by extending the term or changing the mortgage type.
It might be worth obtaining financial and legal advice early in the process – if you are on a low income this might be free. Housing and homelessness charity Shelter can help with other options.
