The novel coronavirus pandemic led many more Americans to buy life insurance in 2020 than in the past. Even younger adults have a fear that they could die at any time. You might not need life insurance, but if you have not yet done so, it might be time to plan ahead for a medical emergency: designate a health care proxy, prepare or revisit your will, do some estate planning and otherwise put your affairs in order. Here’s what you might want to think about:
- A living will and health care proxy: These “advance directives” let your loved ones know your health care wishes if you are unable to express them yourself. The living will states your wishes about your health care if you cannot speak for yourself and your health care proxy is someone you name to act on your behalf regarding your medical treatment if you are unable to speak for yourself. Completing these advance directives and sharing them with the people you love helps bring your family together and provides comfort to them that they are following your wishes should they need to act on your behalf. A signed advance directive for your state is a legal document that doctors and hospitals must honor. The advance directive also ensures that the people you love can make decisions on your behalf. Without a health care proxy, if you became unable to care for yourself, it is possible that the state would appoint a legal guardian, unknown to you, to act on your behalf. To get a free advance directive for your state, click here.
- A durable power of attorney: A durable power of attorney is a legal document that allows you to name someone to help with your financial affairs whenever you would like and if you become unable to handle them yourself. The person you name should be someone you trust with your finances, someone who could make decisions about your finances if need be. That person also could be your health care proxy. Completing a durable power of attorney and sharing it with the person whom you name to handle your affairs should provide comfort to the people you love. You should also share it with all financial institutions with which you have accounts.
- Long-term care insurance: If you don’t have it, no worries. It’s likely not worth having. The cost of the policy is generally very high relative to the benefits. For most people with means, it’s better to put aside money to pay for long-term services and supports, such as home care and nursing home care.
- Your stuff: You might want to set aside time to go through your possessions with your loved ones. Yes, it can be stressful, conjuring up all kinds of feelings and emotions; your children may not want the items you hoped they would take, even if you give these items special meaning and importance. And, it can cause conflicts among siblings if you want one child to have something another child values. But, going through your possessions with your loved ones also can be comforting. Your family can feel good that there’s a plan in place for your things and that you support it.
- In case of emergency: Create a file with:
- A list of your family members, friends and neighbors and their contact information
- A list of important medical, business, financial and legal contacts, including your doctors, bankers, lawyers, as well as the names of your health and life insurance companies and their contact informaiton
- Your will, your health care proxy, living will, durable power of attorney and other legal documents
- Your most recent tax return
- Your car title and deed to you house, if you own it
- Copies of your Medicare and Social Security cards, as well as other insurance cards, including supplemental coverage and life insurance, as well as policy numbers and contact information
- Your medical records and a list of all your medications
- Mortgage or rent information, as well as utilities information
- Digital account information, including passwords
- Information with provisions you have made for your pets, your funeral and other matters of importance to you
Here’s more from Just Care:
- Plan ahead for a hospital visit: Talk to the people you love about these seven important items
- Coronavirus: What to do before you leave the hospital
- Long-term care insurance likely won’t deliver what you need
- New Zealanders join coffin clubs to plan their funerals
- Which health plan should you choose if you’re ill?
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