Jerry Patterson is President of Fidelity Investments Life Insurance Company, a division of Fidelity Investments.
Nobody likes to hear a diagnosis related to a condition such as ALS, dementia, Alzheimer’s, stage 4 anything, stroke or liver failure. Chances are these words have impacted you, your loved ones or people you know at some point. And odds are that somewhere in your current social media feeds you can find donation requests and caregiving websites related to these.
I was recently listening to a woman named Barbara share how she felt the day she learned about her husband’s Alzheimer’s diagnosis. She said that their whole lives changed instantly. It was not too long after when Barbara went into caregiver mode, and her husband made the transition to a memory care facility.
Recently, I also learned that a member of one of my favorite bands was diagnosed with stage 4 pancreatic cancer. He is a husband, father to two young children and friend to countless people. In a moment, the rest of his family’s life was changed. Within weeks of the news, their fight to beat cancer was in full swing. He announced his arrival at a health clinic on social media, and his caregiving website was up.
When news like this hits individuals, there are often two big buckets of reactions from the people that surround them.
The first is related to surrounding the impacted individual with presence, love and support. Words related to these reactions include things such as love, memories, wisdom and knowledge transfer.
The other is related to the impacted individual’s financial situation and getting their financial affairs in order. Words related to these reactions include things such as account numbers, income, bills, debts, payments due, college funding, beneficiaries and wealth transfer.
Preparing For The Unexpected
When someone learns they have been stricken by a condition that could lead to death, disability or long-term care, the financial stress can often overwhelm the important feelings and reactions of love and support described above. But by incorporating the unexpected into their overall financial plan, an individual and their loved ones can feel protected and stay focused on the things that matter most as they confront difficult news.
These moments of diagnosis–moments when our lives suddenly change–can teach very powerful lessons. One big lesson is to prepare and plan for those unexpected moments in advance. Here are four areas to consider where planning and preparing for the unexpected can have a significant impact on those you love. Ask yourself these important questions:
1. Premature death. Do you have enough savings or life insurance protection? Do you have dependents? If so, what does their financial future look like without you in it? Are you depending too much on the coverage you receive through work? Do you fully understand the protection you have through work?
2. Disability. Do you have dependents who rely on your income? How would they, and you, be impacted if you lost your income due to disability? Do you understand the coverage you receive through work, and are you depending too much on it?
3. Long-term care event. What will happen if you experienced a long-term care event? Do you have a plan? Have you identified your future caregiver? Have you discussed your plan with your potential future caregiver(s)? Do you have the financial wherewithal to absorb the cost of long-term care–potentially deep into your retirement years?
4. Health shocks. Do you have the savings or insurance protection to absorb healthcare events with excessive costs? Do you understand how, and if, Medicare will cover these potential costs? Are you aware of what Medicare covers and does not cover, including things such as long-term care events?
If you have loved ones or dependents, you owe them this. Do the homework. Thinking ahead can help reduce financial and emotional stress while giving you and your loved one peace of mind. Create a plan for today with protection for tomorrow.
The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation. Views expressed are as of the date indicated and may change based on market and other conditions. Unless otherwise noted, the opinions provided are those of the author, and not necessarily those of Fidelity Investments.
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