Difficult times :: my life :: Ohio University Credit Union

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Difficult Times

At OUCU, we know that saving money isn't always easy, especially when faced with trying situations. The loss of a job or loved one. Divorce. Identity theft. No one asks for these situations to be put into motion, yet many of us have no choice in the matter. OUCU is here to help you get your life back on track when faced with such difficult times.

Loss of Job/Financial Stress

Losing your job is never easy; however, there are a number of steps one can take to help soften the immediate impact.

Is your career in transition? Learn More

IRAS and Losing Your Job

Self Control

Although you might feel helpless and completely out of control in your situation, there is one thing that you still have power over - your response.

How you respond to finding out that you're out of work can affect your relationship with your soon-to-be-former employer and what sort of support you're able to get as you exit your position.
You don't have much control over the situation, but you do have control over yourself and you can try to choose how you deal with it, to try and act rather than only react.
If your employer offers a severance package, review it before signing it. You may be in a position to negotiate with your employer about possible benefits before you leave.
Even if your company uses a pre-determined formula to set severance payouts, if your circumstances are sudden in nature, think about whether or not you might be able to negotiate for additional benefits.

BALANCE
Credit union members have access to BALANCE, which offers credit counseling and debt management services to members, at no charge, through a toll-free number. Counseling is completely confidential.

Resources:

financial aid workbook PDF

what to do if your income is reduced

early mortgage delinquency intervention

debt management & credit counseling

money management and budgeting

preparing for a financial setback

Divorce

Preparing financially for divorce

Debt and Divorce

IRAs and Suddenly Single

Loss of a Spouse

It's natural to feel overwhelmed by the thought of having to suddenly make so many decisions relating to your husband or wife's life and death and maybe to assume responsibility for things that you've never dealt with before, like financial matters. By breaking the process down into manageable steps, you can make the decisions you're being asked to make while knowing that you're honoring your spouse and caring for your family at the same time.

Financial Guide - Loss of a Spouse

Settling the Estate

If your spouse had a will, chances are they have named you the executor. This means that you are responsible for handling all of the financial and legal issues relating to the estate.

Make sure you have a copy of the will
Keep a copy of the death certificate
Your marriage certificate
Your spouse's social security number
Power of attorney document
Joint tax returns for the past five years
Your spouse's most recent W-2 forms (you can get these from his/her employer)
Record of any outstanding loans
Record of any employee benefits such as retirement accounts or stock option plans
Insurance policies like homeowners, auto, disability and life
Real estate related documents such as your most recent mortgage statement, titles, deeds, leases, rental agreements
Financial statements including checking, savings, CD, brokerage, retirement accounts and credit card statements
Stock certificates and current statements of mutual fund holdings or other investments
Car titles, registrations, loan and lease agreements

Once you have secured these important items, you can begin settling the estate. The process can be broken down into five big tasks:

handling estate expenses
paying off debt
distributing property
paying taxes
obtaining benefits

Some other areas to be aware of: 1) benefits, 2) life insurance, 3) social security

Benefits

Pension Benefits

Pension plans are employer-sponsored retirement plans.

They're called "defined-benefit plans" because the employer guarantees a regular (monthly or annual) benefit.
Contact your spouse's employer to see if your spouse was given a pension plan and if you are eligible to receive survivor's benefits.
Under ERISA (the Employee Retirement Income Security Act), all private companies that offer pension plans are required to provide survivor benefits to the widowed spouse, so unless you've clearly signed a waiver giving up your spouse's pension, you are eligible for benefits.
If your spouse worked for a branch of the government, a public agency, a nonprofit organization or a church, there are separate rules governing pension plans and survivor benefits. Contact them for more information.

Employer Pension Benefits

Most companies offer employer-sponsored retirement plans such as 401(k) plans (also 457 plans for government employees and 403(b) plans for public school workers or employees of religious or nonprofit organizations). You'll need to contact your spouse's employer to determine if he was participating in a 401(k) plan and if so, decide how you want to receive those benefits.

You'll be asked to supply a copy of the death certificate to process the claim and to close out your spouse's account.
It's also a good time to name a new beneficiary for your own retirement plans (if you had named your spouse as your beneficiary).

Life Insurance

Life insurance often provides widows and widowers with their single biggest financial benefit. It can make a huge difference in your immediate and long-term well-being. Depending on your policy's value, it could mean the difference between staying in your home and/or having to go back to work. Life insurance can provide you with some much-needed financial security at such a difficult time.

To get the benefits, you'll need to file a claim with the insurance company. You should contact the company to begin the process. You'll need a copy of the death certificate.
Typically you'll have a few options for how you want to receive those benefits.
- Lump Sum. You receive the entire death benefit in one check. This option allows you to meet your immediate needs and hopefully leaves you with income to invest for the future.
- Specific income provision. Using this option, the life insurance company will pay you principal and interest on a predetermined schedule.
- Life income option. Under this option, you're guaranteed income for life. The income amount will depend on the policy's death benefit and your age.
- Interest income option. Interest income options means that the life insurance company will hold the proceeds of your policy and pay you the interest earned. If you choose this option the policy's death benefit will remain intact and will be paid to a secondary beneficiary upon your death.

There are long-term financial decisions you'll need to make with your benefits, as well as tax implications for the option you choose. Talk to an OUCU financial planning professional before making your payout choice and any investment decisions. You'll also want to change the beneficiary named in your personal life insurance policy beneficiary if you had listed your spouse as the surviving beneficiary.

Social Security Benefits

You'll want to contact Social Security and have them notify you of any benefits you might be eligible to receive.

You are eligible for a one-time lump sum payment of $255 if you were living with your spouse at the time of death.
- If you were not living together at your spouse's time of death, you will receive the payment if you were listed on your spouse's earnings record.

In addition to a lump sum payment, you may also receive monthly survivor benefits.

The amount you may be eligible to receive is based on your spouse's earnings.
The more he/she paid into Social Security, the higher your benefits will be

Following are some estimates of approximate benefits:

If you are age 65 or older you'll receive 100 percent of your spouse's Social Security benefits.
If you're between 60 and 64 you'll receive approximately between 70 and 95 percent of your spouse's benefits
If you have any children under the age of 16 you'll receive 75 percent of your spouse's benefits

You can have your benefits either mailed to you or direct deposited to your OUCU account.

Losing a spouse or a loved one is never easy. Contact an OUCU representative to see what else your credit union can do to help you through such a difficult time. Also, call BALANCE at It offers free, comprehensive budget and debt counseling that often times can be accomplished over the phone. BALANCE is available Monday through Thursday, 8:00 a.m. to 11:00 p.m. (EST), Friday, 8:00 a.m. to 8:00 p.m. and Saturday, 11:00 a.m. to 8:00 p.m. Call BALANCE toll-free 888-456-2227 or visit balancepro.net.