Is your money ready? Ill-health & death01 March 2019
Sadly, a friend of ours has become ill. It should not be too serious, but you never know until his planned operation is complete and he is on the way to full health. He has known for a little while that all has not been right, and this was recently confirmed with the doctors.
He's self-employed and ongoing income will be an issue, so in preparation, he has brought forward work that he can do now before the op and is planning his recuperation carefully.
As Chartered Financial Planners, we regularly discuss clients' needs for protection in the event of ill-health and death; however, when you experience it close to home, it makes you realise that this type of problem occurs every day of the week for many people, employed, directors, self-employed or otherwise.
In our experience, health and wealth tend to go together, and it's important to check your financial planning is in order before the medical professionals do their important work.
Thinking on this further, we have prepared the list below for our blog readers to consider. This is not an exhaustive list, but worth thinking about to ensure you have everything correctly in place. Having read a recent actuaries report, they calculate (based on current data) that on average men will live to around 87 and women to age 90. The issue is that some won't.
- If employed, check what your employer will give you if things go wrong. This might be death in service benefits, sick pay, private medical insurance and the like. What do you get?
- If you've got some debts, such as a mortgage, have you got enough cash now and for a period after any illness to make sure it continues to be paid whilst off work? Make sure there is a list of what you've got and what you owe so if you died someone can quickly get a handle on what your situation was.
- Have a Will in place and make sure it's up to date to reflect where you are in your and your family's life. Make sure someone you trust knows where it is kept (or which solicitor it's with).
- If you run a company, as a director or partner, or you are a bit older, look at establishing power of attorney arrangements (there are two types, Health and Wealth (as we said they go together)). Get some legal advice on what you need in your circumstances.
- If you've got policies, like insurance and pensions, make sure they are nominated or written in trust to the people you want to get the cash if you died. And make sure you've got enough cover.
- If you have Critical Illness cover or Permanent Health Insurance (sometimes known as PHI), check what benefit your cover offers and the terms to which a claim can be made.
These are just some ideas, and we appreciate that some clients and enquirers find it difficult to focus on these sometimes difficult topics. However, they are important, and it shouldn't take a friend getting ill to bring these points into focus.
The team at Chapters Financial has significant experience in this area and would be pleased to help with your needs and requirements. No individual advice is provided during the course of this blog.