Planning for Unexpected Life Events

Planning ahead:

• Gives you control and options for your situation

• Relieves the stress of decision-making from caretakers/family members

• Saves money and helps you avoid financial disaster or setback

• Allows time for gathering information, comparing options, and determining which options help achieve what is most important

Preparing for possible future health problems

The majority of people who need long-term care are older adults. However, the need for long-term care can come at any age due to disabling diseases, car accidents, brain injuries, strokes, and other disabling events.

Families and individuals who plan ahead before a disability will be in a better position to cope in the event of a disability. Consider taking these steps before you or a family member becomes ill or disabled:

• Prepare a plan. Start with reviewing your income and expenses.

• Make sure trusted family members know where to find personal and financial documents in an emergency.

• Set up direct deposit for income and benefit checks. Direct deposit delivers your Social Security or Supplemental Security Income (SSI) benefit or other income sources into your bank, savings and loan, or credit union account quickly and safely.

• Consider automatic payment of important, recurring bills.

• Consider a durable power of attorney. This legal document gives one or more people the authority to handle finances and remains in effect if you become incapacitated.

• Make sure you are properly insured. Speak with a financial planner or an insurance agent you trust. Review your policy regularly because your needs can change.

• Maintain a healthy lifestyle.

The need for long-term care can come at any age – plan ahead.

Health Care Power of Attorney

Experts also recommend a health care power of attorney (also known as a health care proxy, advance directive or by another name, depending on the state) designating a family member or other trusted person to make decisions about medical treatment. Health care powers of attorney are intended to ensure that someone’s wishes regarding medical care are honored.

Direct Deposit of Your Social Security Benefit

Applicants filing for Social Security and SSI benefits must now choose either direct deposit or the Direct Express® debit card. The U.S. Treasury sends an electronic message to your financial institution crediting your account with the exact amount of your benefit. You can withdraw money, put some in savings, or pay bills. The difference is, your check isn’t printed or mailed.

For more information, visit the Department of the Treasury’s Go Direct® website: godirect.org

How to Be Financially Prepared for Disasters

Natural or man-made disasters can strike without warning and can happen anywhere. These include floods, fires, earthquakes, tornadoes, hurricanes, chemical spills or similar events that can force people to evacuate their homes. Even minor disasters can damage or destroy property or belongings and seriously impair your ability to conduct essential financial transactions.

In addition to planning for your personal safety and basic needs (shelter, food, and water), you should be ready to deal with financial challenges, including how to pay for supplies or temporary housing if necessary.

What to Have Ready

• Forms of identification: Driver’s license, insurance cards, Social Security card, passport, and birth certificate.

• Your checkbook with enough blank checks and deposit slips for at least a month.

• ATM cards, debit cards, and credit cards.

• Cash.

• Telephone numbers for your financial services providers (banks, credit card companies, insurance companies, etc.).

• Important account numbers (bank accounts, credit cards, insurance policies).

• The key to your safe deposit box.

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What to Keep and Where to Keep It

• Make backup copies of important documents.

• Make an electronic image of your documents for easier storage.

• Give a copy to loved ones or let them know where to find documents in an emergency.

• Store backups away from your home in case of a community-wide disaster.

• Keep a record of all credit/debit cards with account and contact numbers.

A safe deposit box is best for protecting items of value and certain papers that could be difficult or impossible to replace. However, keep passports and medical directives at home in a durable, fireproof safe for quick access.

Seal important documents in airtight and waterproof plastic bags or containers to prevent water damage.

Prepare One or More Emergency Evacuation Bags

Pack essential financial items and documents (cash, checks, copies of your credit cards and IDs, safe deposit box key, contact information for financial services providers). Each bag should be waterproof, easy to carry, and stored securely. Update contents periodically.

What Else to Consider

• Arrange for automatic bill payments from your bank account to avoid late charges or service interruptions.

• Sign up for Internet banking services, if you can keep your security software up-to-date.

• Review your insurance coverage to ensure you have adequate protection for home, car, and valuable property.

For more information on being financially prepared for disasters, visit: FDIC Consumer News

ACTIVITY 4: How Financially Prepared Are You?

Reflect on what you have learned today. Write down what documents you will gather and where you will store them for easy access in case of emergencies.