How Your Advisor Can Provide Support
If you receive a difficult medical diagnosis, it can be a very stressful and confusing time as you try to understand what seems to be a ton of information being thrown at you all at once. Doctors may have discussions about diseases every day, but if you are a patient who is learning that you have been diagnosed with cancer, heart disease, diabetes, or any other life-altering condition, it can be a struggle to process the news. You might be scared or anxious about what this diagnosis means and how it will impact your life. Will you need to take time off from work or stop working altogether? Will you have to take expensive prescription medications? Will you need to undergo medical treatments? Surgery? It’s easy to get lost in questions as your mind races through the unknowns of what is to come.
No one can know for sure how you will personally respond to medical treatments, but your prognosis may involve a long journey over many years with a diagnosis such as Alzheimer’s or Parkinson’s disease, or it might require more immediate interventions with a diagnosis like cancer. During this initial period of time as you learn more about what you are dealing with, you may want to lean on your family and friends to help you adjust to your new circumstances. It is also an important time to contact your financial advisor. The sooner you can make them aware of your change in health, the more support and guidance they can provide you with in navigating the financial challenges your diagnosis may bring.
Understanding the Financial Impact of a Medical Diagnosis
When something major changes in your health, you might be suffering with physical symptoms that demand attention and make it difficult to focus on anything else. However, even as you address your medical needs, you must consider that there will be potential financial changes as well. Here are some of the possible impacts you need to prepare for:
- Changes to income. Depending on your diagnosis, there are many different scenarios that can affect your income. You might need to stop working. Or, if you are still planning on working, you may not be able to tolerate as many hours and may need to reduce to a part-time level. Medical treatments might require that you miss days or weeks at a time. While the Family and Medical Leave Act (FMLA) provides eligible employees the ability to take up to 12 workweeks of unpaid leave when facing a serious health condition, there are specific criteria that must be met. In addition, if your spouse takes time off from work to help with your care, there might be an additional loss of income.
- Increased Medical Expenses. Co-pays, medications, treatments, in-home care and other expenses may increase and need to be factored in.
- Long-term Financial Goals and Retirement Planning. A serious illness can have a significant impact on your financial goals.
How Your Financial Advisor Can Help
Your financial advisor can partner with you to create a plan that is best suited to your changing needs. They can help you by:
Reviewing your current financial plan and resources.
Your advisor will work with you to get a clear understanding of your overall financial picture so that appropriate adjustments can be made.
- Plan for your immediate needs. A medical diagnosis can force you to take time off from work or interrupt your regular routines. You will need to cover your day-to-day expenses and plan for how you will pay your medical bills. Your advisor can help you to review your household budget. They may suggest eliminating unnecessary expenses and focusing your resources on essential items as you adjust to your new circumstances. In addition, if you are the person who is typically in charge of handling your family’s financial matters, your advisor can be a source of education and support for family members who may now need to step into this role.
- Revisit long-term goals and make any necessary updates to your financial plan. Perhaps you were getting close to retirement and want to move that date up sooner. Or maybe you would benefit from selling some of your investments. You might be unsure if you should amend your goals, stay the course, or what you should do next. Your advisor can review your financial plan and use their experience to serve as a compassionate guide. They can help you make decisions about your goals while factoring in your current needs.
Navigating insurance and benefits.
Health insurance policies, disability coverage, Medicare, Medicaid, long-term care insurance, and life insurance each come with their own rules, costs, and benefits. Your advisor can review what you currently have and make recommendations of ways to best utilize or increase your coverage if necessary.
Planning for the road ahead.
Your financial advisor can review any estate planning documents you may already have and help you to update them so that they fully reflect your current wishes. After a new medical diagnosis, it is especially important to review or create advance directives. The two main types are a healthcare proxy, and a living will. These legal documents allow you to provide instructions for your medical care if you are unable to communicate your own wishes. If you do not already have an estate plan, your advisor can walk you through the necessary steps to establish one.
One of the hardest aspects of any difficult medical diagnosis is the loss of stability. You might feel as if your whole world has been upended. Uncertainty about your health can cause a ripple effect of stress throughout every aspect of your life. Your financial advisor can help to alleviate some of that pressure. As they assist you in taking practical financial steps and planning so you can make the most of your resources, they can also be a calm, objective partner during an emotional time. At Frisch Financial Group, we are here to support you when you are facing life’s toughest challenges. If you would like to learn more, please contact us.
