Dealing with the Financial Implications of Cancer or Other Serious Diagnosis

Navigating the Financial Impact of a Serious Diagnosis: Strategies for Peace of Mind 

While the physical and emotional toll is of course most impactful, the financial implications can also be overwhelming, adding additional stress at an already difficult time. But with some advance planning, you can be prepared to better navigate these challenges so that you can focus on your health and healing. 

The Financial Toll of Serious Illness

A cancer diagnosis often brings a perfect storm of increased expenses and reduced income. Treatment costs can be astronomical even for those with health insurance, with high deductibles, copays, and out-of-pocket maximums quickly adding up. One study found that cancer patients are over 2.5 times more likely to file for bankruptcy than those without cancer.

At the same time, patients may need to reduce work hours or stop working altogether during treatment, leading to lost wages. Family members providing care may also face reduced income. The combination of higher costs and lower earnings can rapidly deplete savings and lead to mounting debt.  

Beyond the direct medical expenses, patients often face many other costs:

• Transportation to frequent medical appointments
• Childcare during treatments
• Special dietary needs
• Home health care
• Medical equipment and supplies 
• Alternative treatments not covered by insurance

All of these can add significant financial strain during an already stressful time.  

Strategies for Financial Planning

While the financial impact of a serious diagnosis can be daunting, there are several strategies that can help:

1. Understand your insurance coverage: Carefully review your health insurance policy to understand what is and is not covered, as well as your out-of-pocket responsibilities. Consider adding supplemental insurance if needed.
2. Explore financial assistance programs: Many hospitals, pharmaceutical companies, and nonprofit organizations offer financial assistance for medical treatments and medications. Social workers or patient navigators at your treatment center can often help identify resources.
3. Negotiate medical bills: Do not be afraid to ask about discounts or payment plans for large medical bills. Many providers will work with patients on more manageable payment terms.
4. Consider disability insurance: If you are still working, short-term or long-term disability insurance can help replace lost income during treatment and recovery.
5. Organize your finances: Get your financial documents in order, including insurance policies, bank accounts, investments, etc. Consider granting power of attorney to a trusted family member in case you become unable to manage finances yourself.
6. Seek professional help: A financial advisor experienced in dealing with serious illness can help create a comprehensive strategy for managing expenses and protecting assets.
7. Look into clinical trials: Participating in a clinical trial may provide access to cutting-edge treatments at reduced or no cost.  

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Planning Ahead: Healthcare Considerations for Retirees 

For those approaching retirement, the possibility of future health challenges makes it especially important to factor healthcare into any relocation plans. While many retirees dream of moving to idyllic small towns or beachfront communities, it is crucial to consider the local healthcare infrastructure. 

Some key factors to evaluate include: 

• Proximity to high-quality hospitals and specialists 
• Availability of cancer treatment centers 
• Access to clinical trials 
• Insurance options and costs in the new location 
• Availability of in-home care services 
• Transportation options for medical appointments 

A serious diagnosis like cancer often requires frequent appointments with various specialists. Living in an area with robust medical resources can make treatment much more manageable and reduce travel-related expenses and stress. 

Additionally, being near family or having a strong local support system is invaluable when facing health challenges. The practical and emotional support of loved ones can make a world of difference during difficult times. 

Key Takeaways 

Taking steps now to shore up your insurance coverage, build an emergency fund, and understand your employee benefits can provide greater peace of mind and financial stability should health challenges arise. For those nearing retirement, carefully evaluating potential locations through the lens of healthcare access and costs is an essential part of planning for a secure future. 

While we hope to never face a cancer diagnosis or other serious illness, being financially prepared can ease some of the burdens and allow patients and their families to focus on what matters most - healing and supporting one another through difficult times. At WHZ Strategic Wealth Advisors, we are here to help ensure you have the best plan for long-term care and all your financial needs, giving you “Absolute Confidence. Unwavering Partnership. For Life.” Visit our website at whzwealth.com to schedule your complimentary consultation or give us a call at (860) 928-2341.     

Presented by Senior Vice President, Financial Advisor Leisl L. Langevin CFP®, CDFA®. Securities and advisory services offered through Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser. 697 Pomfret Street, Pomfret Center, CT 06259 and 392-A Merrow Road, Tolland, CT 06084, 860.928.2341. http://www.whzwealth.com These materials are general in nature and do not address your specific situation. For your specific investment needs, please discuss your individual circumstances with your financial advisor. WHZ Strategic Wealth Advisors does not provide tax or legal advice, and nothing in the accompanying pages should be construed as specific tax or legal advice.