No one likes to talk about death. Even though the only two certainties in life are death and taxes, we shy away from both of them. As a result, many times we are unprepared when death/tax season sneaks up on us.
Simply planning for your death does not in any way jinx yourself or increase your likelihood of dying, despite how we may feel. What it does do is make your death easier to deal with for those that pick up the pieces after you’re gone. Assuming you want these people to have time to grieve for you instead of being caught in a legal and financial mess, it behooves you to pay attention.
Life Insurance: We all know what this is, and there are thousands of articles out there on how to find the right kind. The short version is ignore whole life and get term, it’s much cheaper. Additionally, you should decide whether or not you really need life insurance. This is easy. Do you have anyone that relies on you economically? That doesn’t just mean money. If your wife stays at home and dies, you should have a policy on her to help fill the void she will leave behind. Remember, if she stayed at home the house was probably clean, food was cooked, and children were cared for. This never cost you money, but it will now. If you don’t have anyone relying on you, just make sure you have enough assets to cover the cost of your funeral, figure $5,000 – $10,000 between cash and investments.
Your Estate: When you die, you’re going to leave some stuff behind. Some of you have a lot of stuff, some of you don’t have much. What you do have needs to be spelled out for someone to comb through when you’re gone. Got two kids and one heirloom? You should specify who gets it. Most people do this through a will. But you also need to set up benefactors for your assets, like retirement accounts and who gets your life insurance money from above.
Living Will/Healthcare Proxy: Sometimes you almost die. You aren’t dead, but you aren’t really alive. No not a zombie, but things like a coma. A living will specifies how you should be treated in the event that you aren’t able to speak up. For many, a living will simply states, “if you’re torn whether to pull the plug or not, pull the plug.” A healthcare proxy is someone you would trust to make such decisions for you. If you don’t have a spouse, then you’ll probably need to legally assign a proxy, especially if you don’t like your next of kin.
Power of Attorney: Power of attorney is just giving some the legal rights to make decisions on your behalf. They can serve many purposes, but basically they come in handy when you’re old and crazy and mumble a lot. Many times people choose their children to be power of attorney.
Personal Affairs: Sometimes you die and leave some stuff behind that needs to be taken care of. There are hundreds of different things that this could fit under. I’ll use myself as an example. If I died, you would never know it. Posts would just stop coming and the tweets would end. I wouldn’t want for you to never know about this so I’m setting up a “so I died” post and will give instructions to someone on how to publish in the event of an untimely demise.
I call this a common sense guide to dying because all of this stuff should be common sense to you. But if we all had common sense we probably wouldn’t need a word for it. My guide is just enough to get you thinking about death (great way to start the weekend right?) and researching the various things you need to take care of yourself. Not all of these will apply to you, but you need to think about it.
Now that you’re all sobered up, go out and get some fresh air and smile at a stranger. It’s great to be alive!
Photo: Jim Linwood
 By The Weakonomist |
The Weakonomist is the founder of Weakonomics. Clicking the picture of the puppy will tell you more about him. If you like what you're reading consider subscribing to the blog, following him on Twitter, and checking out the related posts below. Please consider a donation if you really enjoy Weakonomics. |
| Related Websites |
Although I’m sure you would be posthumously humorous, I hope to not read you “So I died” post. Still, it’s a great example of the little things we need to think about.
Similarly, although my wife gets the business when I die (as of now anyway), I don’t want her to hog it because she won’t need it for the money. That’s why I asked her to find caretakers for it instead of finding the highest bidder.