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H is for How Prepared Are You for the Unexpected?

H is for How Prepared Are You for the Unexpected?

Jane Doe was married at 27 years old, became a caregiver at 40 – and a widow at 53.

Her husband’s job required that they travel and live in different locations throughout several states. Jane Doe and her husband took care of their health, saved and planned for their future, and were not worried. They had a strategic financial plan in place and thought they had another 15 years to meet their goals.

One day something happened that would change their lives forever. Her husband suffered a devastating stroke. He spent three months in the hospital receiving care and rehabilitation. At the end of this period, she was told her insurance would no longer pay for his hospital rehabilitation. He wasn’t progressing as much as they would like, and for his care and safety, a nursing home was the best option.  The health care company considered him to be a “custodial care patient” and he would not be covered for long-term care. The insurance company would only cover 50% of prescription drugs because the nursing home was “out of network.”  His monthly care expenses exceeded $6,500 per month.

Over the next 13 ½ years, the out-of-pocket health care expenses, which included his long-term care, continual rehab, and his monthly medications, amounted to well over $1 million dollars. When Jane Doe’s husband passed away, she was 53 years old and needed to rebuild her own financial future starting from scratch.

What they did right as a couple…

  • They had Long Term Disability Insurance
  • They had each other’s Power of Attorney
  • They had up-to-date wills
  • They had Health Care Power of Attorneys
  • They had an excellent financial advisor, CPA, and lawyer
  • They had a financial plan in place
  • They had been aggressive savers throughout the years

What they could have done to be better prepared…

  • Purchased Long Term Care Insurance
  • Examined their health care insurance policy more closely and ask the “what if?” questions
  • Purchased additional life insurance
  • And most importantly — planned better for the unexpected!

The illustration represented in this presentation is not indicative of all client experiences. Each client has unique circumstances. Examples presented here should not be interpreted as a guarantee of future performance or success.