Predicting the future is not always easy but if you know what path you are on now, you find it easier to know what maybe is in store for the future. In other words, if you are living an unhealthy lifestyle and you are unconcerned with risk management like preventative health strategies and protecting your income due to illness or accident, you will have a higher chance of a health meltdown in the future. Plus, it could be very costly. We are trying to help clients with health planning and risk management so when the health crisis does occur you will be in a better position.
What is your health plan?
Your health is more important than any financial plan. It needs to be part of your overall planning process. We can plan for financial emergencies but what about health emergencies?
Risk management is essential for financial longevity. Diversifying investments is important especially during downturns and so is protecting your income in a serious health downturn. Protect human capital as Moshe Milevsky, a finance professor at Queens, tells his students. He believes that your ability to earn income is your human capital. A young person would have much greater human capital compared to an older person.
As a financial planner, I want clients to have fewer surprises in retirement so there is less financial worry when an accident, serious illness or even death occurs. Some of the health considerations are:
- Ongoing preventative health education;
- Healthcare advocate can be impactful to help navigate the healthcare system;
- Non-traditional diagnosis from naturopaths and other holistic practitioners; and/or
- A healthcare directive along with an enduring power of attorney.
Just as you want solid home insurance or insurance for your car, you need the same for yourself. We look at things like:
- A good health insurance benefit program now and for retirement years;
- Critical illness insurance that pays out a lump sum after a diagnosis of a critical illness;
- Life insurance – some need it while others don’t need it but want it for estate and tax planning;
- Disability insurance that pays monthly income as a result of a disability; and
- Long-term care insurance pays once its confirmed that two or more daily living activities cannot be done.
“Predicting the future is not always easy but if you know what path you are on now, you find it easier to know what maybe is in store for the future.”