Facing a terminal illness, cognitive decline, or death represents one of life’s most sensitive challenges. Beyond the emotional impact, these moments can also bring with them a series of financial procedures and important decisions that, if not planned for, can become an additional burden for families.
It’s important to anticipate these moments with concrete actions to ensure that the assets, financial products, and financial benefits of loved ones are properly protected and allocated. This isn’t about panicking, but about acting responsibly, considering the well-being of those closest to us.
Cindy Rivera, Financial Inclusion Manager, mentioned that:
Talking about the future and the possibility of losing abilities isn’t easy, but it’s an act of responsibility that can make a big difference for those around us. At the cooperative, we want to support people with clear and humane guidance so that their resources are protected and their decisions are respected.
Financial Tips for Preparation
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In this context, Rivera recommends taking a series of measures that can facilitate financial management during these difficult times. These include:
Keep your information up-to-date: It is important that your financial institution has your updated information: phone number, address, email, and emergency contact. This will facilitate any process or contact in case of an emergency.
Review and update your beneficiaries: Make sure the designated individuals on accounts, investment certificates, investment funds, trusts, policies, and insurance policies are correctly registered. Changes must be made in writing and include proof of their update. Incorrect or outdated information may prevent your beneficiary from accessing resources.
Delegate financial management through a power of attorney: Granting a special or general power of attorney before a notarized person to a trusted person will allow that person to act on your behalf if you lose the capacity to make decisions. This document must be submitted to your financial institution for formal registration. Check the institution’s policies.
Organize your documentation and share it with someone you trust: Keep key documents such as financial contracts, policies, account statements, investment receipts, and debts in a safe (but accessible) place. This greatly facilitates subsequent management. Inform a trusted person which entities hold your assets and who your beneficiaries are.
Close or simplify unnecessary financial products: Inactive products such as accounts, unused cards, or canceled credits can generate confusion or unnecessary costs. Cleaning up and simplifying your financial products will make future arrangements easier for your loved ones during these times of grief.
Check the insurance policies linked to your products: Some accounts or credits include life insurance, outstanding balances, or funeral expenses. Confirm these benefits and make it clear to your beneficiaries how to access them if necessary. Talk to your financial advisor and document your decisions: Disclosing your health status and documenting your financial decisions allows you to anticipate benefits, authorize automatic withdrawals, or establish specific protections for your resources. These conversations should be recorded in writing to avoid misunderstandings or loopholes.
Rivera urged people to plan:
Planning is not an act of pessimism. It’s a way to exercise responsible control over what we want and to support those we love most in times when everything may be uncertain.
Getting your finances in order doesn’t change reality, but it can significantly reduce the emotional, legal, and financial burden on family members and caregivers. Therefore, this type of prevention is not only a smart decision, but also a deeply humane one.
