Why Insurance May Not Be Enough Without an Enduring Power of Attorney
An insurance policy may provide a payment, but it does not automatically authorise relatives to manage money or make decisions for someone else.
Insurance does not solve every problem
People purchase health insurance and build savings believing that their family is protected. If illness or injury leaves a person unable to make decisions, however, relatives may have no legal authority to act on that person’s behalf.
Even when an insurance payment is due or money is available in an account, being a spouse or child does not necessarily provide authority to use it. Banks, insurers and medical providers need to know who may legally represent the person.
What can be decided in advance
An enduring power of attorney enables an adult who understands the document to choose trusted representatives and set instructions for the future.
- who may handle property and financial matters;
- who may make personal and medical decisions;
- which limits and safeguards should apply;
- when and under which conditions the authority takes effect.
Why the document must be personal
Every family has different accounts, insurance arrangements, property and relationships. I begin with a conversation about who can genuinely help, which decisions cannot wait and where additional oversight may be appropriate.
An enduring power of attorney does not replace insurance or a will. It addresses a different question: how a person’s affairs should be managed during their lifetime if they cannot act independently.
When to seek advice
This document is prepared before a crisis, not after it. I can review your family’s situation and prepare an individual document that reflects the authority and safeguards you actually need.