5 Essential planning tips for chronic
illnesses
More than 25% of
Americans live with chronic conditions like arthritis, hypertension, asthma,
and diabetes. These illnesses frequently require regular treatment, close
monitoring, and often costly maintenance medications. How do you manage you
illness day-to-day and also keep an eye on your future financial health?
1. Share your health
history with your financial advisor
Many people do not
share their illnesses with their financial advisors or factor them into their
financial plans, which is a big mistake. There’s a lot you can do today, such
as budgeting for day-to-day expenses, taking advantage of health care savings
accounts using pre-tax dollars, purchasing disability coverage, if it is not
offered by your employer, as well as long-term care insurance. Speak openly
with your advisor so he or she can help you understand what products can help
you manage your expenses.
2. Keep track of your
claims, coverage, and costs
In addition to
understanding what your health insurance covers and what it does not, you
should also track your out-of-pocket expenses such as deductibles, co-pays,
coinsurance, and non-formulary prescription drug costs. Discuss your
health-care costs with your advisor. You may want to simplify your record
keeping and consolidate accounts to help you readily view a snapshot of your
finances. In addition, make sure a close friend or family member can access
your information in case you are ill.
3. Review your
investment strategy
You may need to update
your investment strategy since your risk tolerance and income needs may change
if your illness progresses. For instance, you may need more liquidity to manage
short-term needs, such as a new medication, treatment/therapy, or modifications
to your home. Conversely, if you are young and have a condition that is
manageable for the long-term, you may want a more aggressive strategy to make
the most of your time horizon. You’ll also want to consider how long you may be
able to work. If you anticipate you may need to retire early, take a long-term
absence, or reduce your hours, factor those events into your overall plan.
4. Learn how your life
insurance can help
If you have a chronic
illness and own term life insurance, you may want to consider converting it to
permanent life insurance so that your loved ones are protected. Depending on
what type of permanent life insurance you have, you may be able to access
benefits today for expenses when you become seriously ill. . OneAmerica
recently introduced a Long Term Care rider that is available on whole life policies.
The rider provides an opportunity for the policyowner to receive a portion of
the policy’s face amount should the insured become chronically ill. You can
find out more details about the rider.
For those who already
own a life insurance policy, if it is a policy that accumulates cash value, you
can borrow against it. If your policy has an accelerated benefits rider, you
can unlock a certain percentage of your death benefit to use while you are
alive. If you are a caring for a loved one with a chronic illness, you’ll want
to make sure your own life insurance is in place and sufficient to support the
person you are caring for in case you pass away unexpectedly. Discuss your
alternatives with a New York Life Agent.
5. Create an estate
plan
An estate plan can
provide peace of mind for someone with a chronic illness. Not only does it help
you plan ahead for how you want your assets settled, but it also allows you to
make decisions about your medical care, finances, and care of dependents if you
become too ill to make your preferences known. Your estate planning should
include creating a living will that makes specific decisions about your medical
care. You should also consider giving power of attorney to someone you trust so
that he or she can manage household details such as paying bills and filing taxes
if you become temporarily incapacitated.
A Speros Financial
agent would be happy to get together for a free, no obligation meeting to
discuss your financial security needs.
Vasilios "Voss" Speros 602-531-5141
Spence Cassidy and Associates
#LifeInsurancePhoenix #RetirementStrategiesPhoenix
http://www.scaaz.com/
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vsperos@scaaz.com
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