In the sixth episode of this ‘Family Matters’ season, Simon and Bex discuss how best to deal with financial matters arising from accident and illness factors that can affect families.
Some key points of interest covered in this episode include the following:
- Simon describes the aim of this episode as being to help us to consider our options in light of the potential financial implications of various accident and illness events that can affect us and our families. [00:57]
- Simon suggests that the first area to explore should be insurance because it provides a means of preparing ourselves financially, to some extent at least, for unexpected changes in our circumstances. [02:29] He goes on to explain that insurance is a way of allowing a number of people to share risks together in a manageable fashion in order to reduce the impact of events that would otherwise have a very detrimental effect upon their financial situations. [03:12]
- When we are trying to decide what kinds of insurance we should take out, Simon suggests that it is helpful to establish a hierarchy of priorities so that we take out insurance options that are relevant and appropriate for our circumstances. [05:38] Illness insurance might, for example, be more important for a single person to have, compared with life insurance. [06:55]
- Simon suggests that most insurance decisions are heavily influenced by our emotions and that it can therefore be helpful to adopt an overview of insurance that appreciates the peace of mind that it can provide rather than focusing on the fact that it can end up being an outlay of finances without any tangible return. [08:52]
- Simon explains that a power of attorney arrangement can be an invaluable provision to have made when significant illness and accident events occur. It can be used in normal life - for example, to give access to a bank account while a spouse is overseas. However, its greatest benefit comes from its use to transfer decision-making powers (relating to finances, property and medical treatment) when someone has lost mental capacity and is no longer able to manage their own affairs. [10:45]
- A spouse or adult child will often be selected for power of attorney responsibilities, but a friend or trusted adviser would also be an appropriate choice. [12:12]
- There is no default power of attorney arrangement that comes into force If no such provision has been made, and this can lead to upsetting and expensive consequences for individuals and families. Simon therefore urges listeners to put a power of attorney arrangement in place sooner rather than later. [12:51]
- A power of attorney can be arranged through a solicitor in Scotland; in England, this can now be completed online. [15:14]
- The need for long-term care – caused by accident, illness or old age – can also have significant, unforeseen financial consequences. Professional advice can often be very helpful in such circumstances. [16:49] In addition, good family communication is vital in this area, so Bex and Simon encourage listeners to be proactive in raising financial matters in a constructive manner with other family members. [18:57] Simon reiterates that point in his closing remarks. [20:32]
- Bex invites listeners to share comments and questions through the usual channels: whereyourtreasureis@freerangepodcasting.co.uk via email and @whereyourtreasureispodcast on Instagram. [21:22]
Suggestions or feedback arising from this episode can be sent via email to whereyourtreasureis@freerangepodcasting.co.uk while messages via Instagram should be directed to @whereyourtreasureispodcast.
Our Instagram page will also provide you with additional content and features.
This show has been brought to you by Free Range Podcasting.
You can sign up to receive news and updates about this podcast by filling out the brief form to which you will be taken when clicking here: https://where-your-treasure-is.kit.com/13c7b5fec6
