About this episode
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 expe
