PREPARATION PLAN FOR MEDICAL EMERGENCIES BEFORE THEY HIT

WRITERS: THOMAS FROSS AND ROBERT FROSS

Financial Strategies Can Help You Be Prepared

In honor of patients and their families during, Breast Cancer Awareness Month, we want to talk about planning ahead for unexpected events such as a serious illness.

This is a major topic we address with our clients so they have a game plan in place and know what to do when someone becomes ill. Millions of American families deal with a serious illness and often struggle to handle the financial fallout while arranging care and managing the household.

Our goal is to move our clients away from crisis management and help them create strategies for future emergencies. Being prepared for the unexpected goes beyond having adequate savings or health insurance; it requires having thought about the potential financial, physical and emotional impact of a disease diagnosis.

DO YOU HAVE MEDICAL DIRECTIVES AND OTHER LEGAL DOCUMENTS IN PLACE?

One of the first things we cover with our clients is the importance of having proper legal documents. We advise including a power of attorney that empowers someone to conduct financial transactions on your behalf when you are unable to, a health care power of attorney that names agents who can make medical decisions for you (and your spouse in case you are both incapacitated), and advanced directives that communicate your wishes for end-of-life care.

We strongly recommend you consult a qualified attorney familiar with Florida laws when developing legal documents. We work closely with a number of excellent attorneys and can provide recommendations if you don’t currently work with one.

ARE YOU PREDISPOSED TO CERTAIN CONDITIONS OR HAVE A FAMILY HISTORY OF DISEASE?

We can never predict the future, but many of us have family histories or risk factors that may leave us at greater risk of developing a disease. Knowing about these contributing factors can help you plan more effectively for the future.

HOW WILL YOU COVER REGULAR HOUSEHOLD EXPENSES DURING AN ILLNESS?

An unexpected illness often means time off work for patient and caregivers. It’s critical to prepare for the financial consequences of a loss in wages. We work with our clients to help ensure they are covered for unexpected emergencies through a combination of emergency cash reserves and other sources of income.

HOW WILL YOU PAY MEDICAL BILLS?

Medical bills can be staggeringly expensive. The average lifetime cost of a stroke is $100,000 for a survivor, and the mean lifetime cost of breast cancer treatment is over $128,000. Worse, a 2007 study found that 62.1 percent of bankruptcies in the U.S. were linked to medical bills. Thinking about how you will cover potential medical bills can help your family avoid becoming a statistic.

WHAT ARE YOUR PLANS FOR A LONGTERM ILLNESS?

Chronic or severe illnesses often require changes to your lifestyle and living arrangements. Financially, it’s essential to have contingencies in place to pay for long-term care, whether it’s help at home or nursing home care. AARP found a part-time home health aide cost about $22,000 per year in 2012, while full-time nursing home care averaged over $90,000 per year. Even if you have Medicare, it may not cover everything, and advanced preparation can help protect your family from ugly financial surprises.

HOW WILL YOU ENSURE YOU HAVE THE EMOTIONAL AND LOGISTICAL SUPPORT YOU NEED?

Dealing with a serious illness is emotionally, mentally and physically exhausting and you will need support. Your family, friends and community will want to pitch in, and it’s wise to think in advance about how your loved ones can help.

One of the most important ways a financial professional can support you is by helping you prepare for the unexpected. If you already work with a financial professional, we urge you to keep him or her posted on your family’s health so that he or she is aware of any issues that could substantially affect your life or leave you exposed to financial risk. This way, if a life-changing event takes place, you are ready to move forward during a crisis.