Where should you begin?
We can do our best to plan for many things in life, but sometimes moments arrive that catch us off guard. Receiving a new medical diagnosis can be one of those times. Your doctor may start providing you with lots of information, which in turn, leads to many questions. Will you need to undergo specialized treatment? Will you need to have surgery? How will your daily life be impacted by your condition? Will you need to take new medications or adjust your lifestyle? What are you supposed to do first?
It can be challenging to sort through all of this new information when you are feeling well, let alone if you are not. While many things may need to be addressed, one of the most important things you can do for yourself is to pause and make a plan to cover your immediate expenses, so that you can free your energy to focus on caring for your health.
Here are some steps you can take after receiving a new medical diagnosis:
Prioritize the Essentials
What will you need to deal with right now? You can start to make a plan by asking these questions that can impact your income and expenses.
- Will you need to have surgery or undergo treatments? Are you facing a diagnosis that requires urgent treatment or hospitalization? Will you need to spend time in an extended care facility? Or have you learned you have a chronic condition that will require ongoing care? Understanding the treatment and management needs of your diagnosis is the first step in anticipating related expenses.
- Will your income be impacted by your diagnosis? Will you be able to continue working? Will you need to take an extended absence? It is key to speak with your employer as early as possible so that you can learn about any resources that are available through your job.
- What are your monthly living expenses? Do you have an established household budget? Think about mortgage or rent, utilities, groceries, etc. You may want to cut back on any unnecessary spending so that you can direct your financial resources to paying for your essential bills.
- Consider the basics. Do you have an emergency fund? How will you get to medical appointments? Will you need to arrange for child or pet care? Do you have family or friends who are able to assist you, or will you need to hire someone to help you in your home? Budget for these expenses if necessary.
Review Your Insurance Coverage
Now is an important time to take a close look at your health insurance policy.
- Contact your insurance provider. Ask them for a clear breakdown of what is covered under your plan and if there are any exclusions you should be aware of.
- Verify the cost of copayments, coinsurance amounts, and your deductible. This can help you to budget for what expenses may be your responsibility.
- Do you have prescription drug coverage? If you are prescribed medication, find out if it is covered under your plan and if you will have any out-of-pocket cost to pay.
How to Pay Your Bills
You will need to determine the actual process by which you will pay your bills. For example, if you have been the one who usually handles this task, you may need to pass this responsibility over to your spouse or make other arrangements. Here are some things to consider:
- Will your spouse be the one who will pay your immediate expenses? Whether you have your bills set to autopay or you have a routine that you follow when paying your expenses, you will need to show your spouse the system you have been using so that they can take over. Be sure to provide them with account numbers, logins, and passwords for online access.
- You might be capable of continuing to handle this task yourself but must stay in a hospital or rehabilitation facility. You can still use a laptop or other mobile device to pay your bills but if you have set up your two-factor authentication (2FA) to a landline in another location, this can cause a problem. If you know in advance that you will be away from your home or office for a period of time, you can make adjustments to your method of 2FA in advance so that you will have seamless access to your accounts.
- You can create a financial power of attorney (POA) to designate someone to act on your behalf in financial matters. This way, if you cannot do so yourself, you have someone who has the legal authority to and is ready for the job.
How Your Financial Advisor Can Help
On top of managing your health, the added worry about care costs and financial stability can feel like too much to handle. Your financial advisor can help ease that burden by:
- Providing you with a compassionate, unbiased perspective that takes into account all of your financial resources.
- Helping you to manage your expenses while potentially dealing with adjusted income.
- Making updates to your financial plan that align with your health status and long term goals.
- Ensuring that you have comprehensive estate planning documents in place that include a living will, power of authority, and a health care proxy.
Navigating a new medical diagnosis can feel overwhelming, especially when health concerns and financial questions arrive all at once. By gathering as much information as possible, reaching out to professionals who can guide you through, and creating a plan to cover your immediate expenses, you can reduce stress and uncertainty. If you would like to learn more about how we can help you, please contact us.
