Spousal bereavement may affect the health status of the survivor, with consequence for formal care needs. In this paper we first provide a typology of health and characterize health of each respondent using a flexible non-parametric method. We subsequently specify a bivariate survival model for heads and spouses. We provide a static and dynamic panel data model for health. Mortality and health models are linked by unobserved components. In both models spousal bereavement is explicitly modelled. The full model is estimated using Simulated Maximum Likelihood methods. The model results are used to calculate life expectancies in specific health states.