Cheryl Canzanella, a brokerage director at MassMutual, recalled her husband, Colin Goodell, turn into a different person as he battled opioid addiction.
After the couple was married about seven years, he began using painkillers as treatment for his back pain. But last August, at the age of only 38, Goodell died of an accidental overdose after an addiction relapse. Canzanella, now widowed, is using her personal experience to raise awareness about opioid addiction in the advisor community and the financial hardship it can cause clients.
In 2016, drug overdoses were the cause of death for more than 64,000 people, according to the Centers for Disease Control and Prevention, and 42,000 were the direct result of opioid use. Opioids include prescription painkillers Percocet and OxyContin, as well as the illegal drug heroin. The death toll from opioids is now more than five times the rate in 1999, according to the CDC. As a result, the Trump Administration declared the opioid crisis a public health emergency in October 2016.
Addiction can quickly derail initial financial planning. One client spent upwards of $100,000 to get her son through treatment while he was struggling with an opioid addiction, Canzanella remembered. It is important for advisors to begin building trust with clients from the beginning, so they will feel comfortable being honest about sensitive issues like drug addiction that could ultimately impact their finances, Canzanella asserted.
“When it comes to a client choosing to save their money or save their child, the client is always going to choose saving their child,” Canzanella said. While advisors cannot solve opioid crisis alone, it is vital for them to be aware of what this addiction looks like, Canzanella explained. Users from high-income families usually are able to support the habit much longer than those from lower-income families. It can take families longer than one would expect to notice the effects from using opioids, she added. Changes in spending, legal issues and visible signs of withdrawal are something advisors need to be able to identify, she explained.
It is also important to be armed with resources for clients battling addiction. Building relationships with attorneys, therapists, support groups, and having recommendations for reputable treatment facilities will help advisors serve clients on more than one front, she said.
“Advisors have to be prepared to ask the difficult questions,” Canzanella asserted. Advisors should approach affected clients with extreme empathy using strategies that will safeguard client assets. For a parent with an addicted child, taking out a life insurance policy may be beneficial to the client later on, Canzanella said. For clients facing this addiction themselves, setting up a legal language that prevents the client from excessive and sporadic spending could be imperative, Cazanella explained. For example, mandatory drug testing before the client can receive distribution from trusts or other accounts is one strategy that has been helpful for addicted clients, she said.
Today, Canzanella continues to promote awareness about opioid addiction and plans to present at upcoming regional meetings of the National Association of Insurance and Financial Advisors and the Women in Insurance and Financial Services.