My Survivorship A to Z Guide

Life insurance is an excellent resource of money:

• To provide funds for your children and other loved ones until they can become economically independent.
• To pay a funeral.
• To pay any debts you may have at the time of your death.

In addition, life insurance can provide you with a source of money if you need it while you are still alive.

You may be able to add to your life insurance at work with no medical questions asked -- particularly during open enrollment periods. Also explore guaranteed issue policies, credit card life insurance, and insurance through a broker or online.

In case you want to obtain money later from a life insurance policy by selling it, any policy you buy should:

• Be issued by a company with an A or A- rating.
• State that ownership of the policy can be transferred (is "assignable") -- or at least doesn't state that it cannot be transferred.

It doesn't matter whether the policy is permanent such as Ordinary life, or term (policies that do not have a savings feature.)

Next time you have a choice about health insurance policies, consider which is best for you as a person living with [insertdiagnosis]. Your diagnosis will not affect your ability to change policies. Our Health Plan Evaluator can help you decide which policy is best for you.

Put as much money as you can into retirement plans. It may sound counterintuitive, but any money you put into a retirement plan now reduces your tax, increasing your net -- leaving the money available in case you need it in the future.

Do what you can to keep your disability income insurance in force. It's not likely that you would qualify for a disability income insurance policy on your own because of your medical history.

Obtain life insurance if you can. Many employers have an open enrollment period of time each year when employees can purchase life insurance or increase the amount they already have.

• You qualify in spite of your health history because no medical questions are asked during this period.
• This is one of the cheapest and easiest ways for you to get more life insurance.
• If you leave work, you'll probably be able to take the life insurance with you, or convert it to an individual policy.

• As you'll see in the Finances category, in addition to the traditional reasons to buy life insurance, you can sell your policy if you become very sick.

If you need time off, juggle your various entitlements to your maximum advantage. You're probably entitled to time off with pay for vacations, sick days, personal days -- and possibly as a reasonable accommodation. If you work for a large enough employer, you may also be entitled to time off without pay under the federal Family and Medical Leave Act (FMLA) or similar state law. Your benefits will also continue. If time off is due to the FMLA, you will have to pay for your benefits.

You can buy insurance to protect against identity theft. If you can find inexpensive coverage, it may be worthwhile so you can concentrate your energies in other areas.

Otherwise, there are five easy steps to protecting yourself. Identity victims aren't liable for losses due to fraud, but you can lose a lot of time correcting the situation.

Five Protective steps to consider include:

Step One:        Be stingy about giving out personal information.
Step Two:        Check your credit card and bank statements each month. Particularly look for unauthorized activity.
Step Three:     Several times a year, check what the national credit bureaus say about you.
Step Four:       Put a freeze on new credit accounts, if permitted in the state you live in.
Step Five:        Check your medical records and put a freeze on them as well.

• Most retirement accounts permit loans against the money in the account for any purpose.
• Most plans also permit withdrawal, although the purpose for which the money is to be used may be limited by the terms of the plan. Rules may be different for withdrawals from contributions which were made to the plan after-tax and withdrawals from pre-tax contributions. Withdrawals are usually subject to income tax and a penalty. The penalty can usually be waived if you are disabled as defined by Social Security.
• Money shouldn't be withdrawn from a retirement plan without a lot of thought. Retirement accounts permit you to defer the tax on income earned in the account. The funds are also generally protected from creditors, including the IRS. Withdrawal may also affect other benefits you are receiving or that you qualify for.