Planning for Serious Illness
For many, October marks not only the unofficial beginning of autumn but also the beginning of “spooky season.” This month has always come with an array of frightful characters — Frankenstein and witches, the eerily slow and methodical walk of a horror film killer, or a single red balloon floating hauntingly out of place.
Scary movies take all forms, from supernatural to realistic, but as suspenseful and oddly enjoying as a good scary movie can be, we know it is not reality. The film will end and we can return to normalcy.
However, sometimes your normal life encounters a plot twist, and you find yourself in a real-life horror story. What do you do when life presents you with an unexpected serious — or terminal — illness? From heart attack to cancer, Parkinson’s disease to Alzheimer’s, all are frightening, even for the bravest of us. The fear of an untimely death simultaneously reminds us of our mortality and raises our apprehension and anxiety. It touches all aspects of our lives, including our finances.
Such was the case eight years ago when my mother received confirmation of her amyotrophic lateral sclerosis (ALS) diagnosis. My family knew we were facing a truly terrifying foe. It’s a monster with no known cause or cure. Walking alongside my mother during her two-year battle was challenging on many fronts for my father, two brothers and me. It was also a learning experience with lessons I have adopted in my work as a financial advisor.
Absent a terminal or serious illness, most people prepare for the financial risk of death on two primary fronts.
- First, life insurance protects against the lost income of an earner and allows survivors sufficient dollars to provide for their needs in the future.
- Secondly, an estate plan thoughtfully arranges for the deceased’s assets to flow to the people and/or charities they choose. Working with clients for over 20 years, I have found that many people tend to procrastinate planning for difficult situations like this. Death is never a welcome conversation, even when we are healthy.
But when a terminal or serious illness is the enemy, it brings urgency to the need for a plan. If you face that battle today, I hope this three-pronged “fight plan” is a helpful supplement to your physicians’ guidance for your healthcare needs.
1 – Attack the big things first
Major on the majors.
You will have good and bad days health-wise, so use a portion of your good days to focus on high-impact financial areas. My mother knew the reality of her diagnosis and that a gradual physical decline was inevitable. She and my father took quick action to meet with an attorney and preplan her funeral, which removed that from her to-do list and allowed her to focus on her health. It not only benefited her peace of mind but was a gift to our family as her survivors.
- Ensure you have the appropriate estate planning documents in place. This includes your last will and testament and documents that are key during your fight: a power of attorney to allow a trusted person to act on your behalf financially; an advance health care directive naming a medical power of attorney to make health decisions if you are unable to do so; and a living will outlining your end-of-life medical care preferences.
- Communicate to a trusted person, preferably your power of attorney, where your important financial documents are located. This includes not only your estate documents but also long-term care insurance policies, disability insurance policies, life insurance policies, health/Medicare insurance information, income tax returns and how to access important online accounts that may be necessary for paying bills or continuing other financial responsibilities
2 – Simplify. Simplify. Simplify.
Complexity requires time and energy. Simplify where possible.
My mother was the chief financial officer for the household, paying monthly bills and managing the family finances. Like any good CFO, she had a system that she taught my father so he could step into that role.
Look for opportunities to bring simplicity and efficiency to your financial life:
- Establish autopay for recurring monthly bills such as utilities, cell phone, and home and auto insurance.
- Close bank accounts or credit cards you rarely, or never, use.
- Ask family, friends or professionals to help with time-intensive tasks or assets, such as rental properties or business interests.
3 – Do not fight alone
Ready your team. It takes a village.
My mother was fortunate to have the help of my father and my oldest brother for day-to-day physical needs when she was no longer able to care for herself. My other brother is a pharmacist and was invaluable for health and medication-related questions. I served as a resource for financial questions and coordination with others on my mother’s financial team.
Consider who you have in your family or friend circle with key skills that can be helpful during your battle. Undoubtedly, you will have areas where professional advice is necessary, and you may need some or all of the following:
- An estate attorney to draft those important documents mentioned earlier, and for survivors to rely upon for settling your estate.
- A financial advisor, preferably one familiar with your full financial picture who can serve as the “general practitioner” among your group of financial specialists.
- A tax professional, such as a CPA, to file your tax returns. They can also offer guidance on the deductibility of medical costs, which are likely to be higher than you have experienced in the past.
- An insurance agent(s) for help navigating a disability or long-term care insurance claim. Survivors may need to work with the agent when filing a life insurance claim.
While incredibly difficult, it was also encouraging and inspirational to see my mother embrace her fight with ALS. The muscles affecting her speech were the first to be impacted. She responded by becoming a world-class texter from her iPad, and her use of emojis remains unrivaled to this day. Her ability to swallow became difficult, but she continued an active lifestyle with a PEG feeding tube. I distinctly recall her preparing a Thanksgiving meal for our family after getting the PEG tube. Even though my father, brothers, and I tried to convince her to rest, as always, she was in charge. She could not enjoy the food, but she was unwilling to give up the enjoyment of our family gathering.
When the most frightening of health and financial circumstances arrive at our door, we may desire to shield our eyes or run away, but inherently we know that is not an option. The right team of medical professionals, a fight plan addressing the most important financial items first, simplifying life where possible, and having a support system can help you rise to the occasion.