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What should I do if I face a terminal illness?
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Following news of a terminal illness, you'll want to take a number of financial considerations into account. But before you can get your financial house in order, you should make sure you've gotten the emotional assistance you'll need, whether from a professional counselor, a support group, or a spiritual advisor.
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A financial advisor is probably a good idea, too, as you'll have difficult assessments to make. An initial concern is to make sure you have sufficient liquid assets on hand to meet both everyday needs and the inevitable medical bills, which are likely to increase over time. You should also meticulously review your household income and expenses; as much as possible, you'll want to stick to a reasonable budget, especially if the family will be facing diminished income.
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You'll also want to perform a comprehensive review of the patient's available assets and benefits. You may need to liquidate assets to cover emergency costs, and if the ill person is a primary breadwinner, family members will need to understand their future financial status. Find out whether assets held in a retirement plan are available through hardship-withdrawal allowances. And all those "just-in-case" insurance policies, like disability and supplemental life, will become crucial both during an illness and after a death. Include policies purchased through an employer as well as from outside agents.
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Finally, pay attention to legal matters, such as the titling of assets, living wills, and power-of-attorney documents. Make sure that beneficiary designations are properly named. Although dealing with an illness is a draining and stressful situation, you want to make sure that you and your family, rather than the courts or other outsiders, retain control of the most important decisions.
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