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When you or a family member receives a big health diagnosis, you’ll need to redirect your attention immediately. You may need to take time off from work, go to several medical appointments, and consider upcoming costs. Trying to manage all of these changes at once can become a heavy burden for even the steadiest person.
Fortunately, however, it’s possible to take control of a difficult medical situation. Following a simple financial checklist can help you and your family navigate a life-changing diagnosis. Read on to learn how.
Consider Your Health Insurance Policy
With a health-related situation, you don’t want to be blindsided by large bills. But you won’t know what to expect until you look at your current health insurance policy. Make sure you’re clear on what procedures and medications are covered.
Review your deductibles so you know how much you’ll be expected to cover out of pocket. Understand any copayments you’ll be responsible for paying for services or medications. And if you have prescription drug coverage, be clear on what is included.
Know which providers accept your insurance. And learn about other support benefits, like counseling or home health care.
When you receive treatment, put all bills and payments in one file. If you have a claim denied, you’ll need the right paperwork to appeal it. Work with the facility where you’re receiving care, too, to see if you’re eligible for assistance or monthly payment programs that can be easier on your budget.
Look at Ongoing Expenses
As you juggle new medical expenses, you’ll want to review existing costs you face each month. For instance, you might have a mortgage or daycare payments. You’ll need to pay for utilities, groceries, and perhaps make car or student loan payments.
Consider medical costs separately. You may need to start taking a new medication or make payments to reach your deductible. You could also spend money on gas more frequently to reach appointments.
Caregiving expenses may come into play, as well. You or a loved one could need assistance getting to and from appointments. Hiring a professional caregiver or asking a family member to reduce hours at work can have significant impacts on a budget.
When you’re clear on your recurring and anticipated needs, you can plan accordingly. You might need to make new childcare arrangements or trim other expenses from your budget, for instance.
Understand Your Life Insurance
Do you have a life insurance policy? If so, you’ll want to review how much coverage it provides, as well as the individuals set as beneficiaries.
Depending on your policy, you may be eligible to receive benefits in advance. You may need to have a chronic or terminal illness. Or you may need ongoing medical care, potentially through a nursing home, to qualify.
Additionally, a viatical settlement may make sense in certain situations. Working with a viatical settlement company, you can sell your life insurance policy and receive a lump sum payment. This process differs from a life settlement in that a viatical settlement is reserved for those facing an urgent, life-threatening situation.
The viatical settlement amount will be lower than the death benefit, but the immediate cash can be extremely helpful. Generally, the amount won’t be subject to federal taxes. You’ll want to consider your needs and eligibility requirements as you weigh the best option for your life insurance policy.
Gather Key Documents
Make sure your most important documents are grouped in one spot. And let a trusted family member know where to find them.
Important documents can include details about your health and life insurance policies. Similarly, include bank account information, as well as credentials for other financial accounts. And, if you’re paying a mortgage or other loan, include account information in your file.
Add your will, trusts, and historical tax information. Include any employment-related benefits information or retirement account credentials, too. Staying organized early will make decisions down the road easier.
Find Financial Solutions
A life-changing diagnosis can trigger emotional and financial stress. But when you’re methodical about reviewing your budget and organizing key documents, you can stay on top of your new normal. Look at caregiving needs, insurance policy coverages, and income changes as you work toward financial solutions.
With a diligent and patient approach, you can ensure that you have sound financial footing as you work through a challenging medical situation.
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