Holiday gatherings may be a good time to start conversations about finances with older family members.
Sonya Sellmeyer, a consumer advocacy officer at the Iowa Insurance Division, says people may be reluctant to give out financial information, even to their children.
Sellmeyer says you can also go with a loved one to talk with their attorney or financial advisor, but beyond that, you’ll probably need power of attorney — or POA — to discuss their finances with an outside party.
“Even when we have complaints filed here at the Iowa Insurance Division, we can’t just talk to somebody,” she says. “We need to have a POA on file, or some kind of permission from the other person to talk to them about their issue.”
She suggests you start the conversation with basic questions like, “What do you want us to do if you get sick or die?” and “Who would you like as your trusted contact?”
Knowing the location of important documents is also important for loved ones. Sellmeyer says life insurance policies can be hard to decipher after someone has died.
“We are more than happy to talk to any consumer about any insurance product that they have to help them understand what they’ve purchased,” Sellmeyer says, “though I do like to preach: don’t buy something if you don’t understand it, but insurance is confusing.”
Sellmeyer says older Iowans may have life insurance policies they purchased long ago, and are now paying expensive premiums. She says it helps to review those policies once a year.
Older Iowans are also more vulnerable to scammers, so adding a trusted contact to accounts is a good idea. If there’s a change in behavior or something seems suspect with the account, the contact could be notified.
(By Grant Gerlock, Iowa Public Radio)