Many people are under the impression that they can handle any type of medical crisis. Believe it or not, millions of people have allowed this confidence to cloud their judgment and ended up losing everything they own. A medical crisis can occur without a moment’s notice and out of nowhere, giving you no time to prepare, which is why it is crucial to be prepared in advance. Strokes, heart attacks and traumatic injuries can leave you disabled and unable to work. Below, you will discover several tips on how to protect yourself from bankruptcy in the event of a medical crisis.
Obtain Solid Health Care Coverage
As you probably already know, health care costs are scaling higher and higher every day. In fact, many people are struggling in debt due to their high hospital and doctor bills. The only way to prevent you from falling into this category is to obtain solid health care coverage in advance. If you are employed full time, you will probably have the option of purchasing insurance through your employer. While this is a great way to obtain affordable coverage, sometimes it just is not enough to protect your financial assets.
You can always purchase the employee provided health insurance coverage and purchase a secondary plan through a private health care insurance provider. When the primary insurance coverage does not cover the entire bill, the secondary insurance policy will cover the rest, leaving you with a zero balance.
Do Not Max Out Your Credit Cards
If your health outcome is not satisfactory, you may not be able to return to work for an extremely long time or not at all. Of course, this is something that no one wants to have happen to him or her, but by being prepared you will be able to handle the situation much better. At first, you will have your savings to rely on to pay your bills, mortgage and other expenses, but this will soon run out. However, it is crucial to avoid maxing our your credit cards, because this could very well put you on the edge of bankruptcy. A couple of past due credit cards with a large balance could push you over the edge.
If necessary, you can always consider applying for short term loans, if you have someone willing to cosign for you. Maintain a minimum balance on your credit card, by only purchasing the absolute necessities with it.
Sign Up On Disability
Something that no one wants to be forced to do is sign up on disability. This is a long drawn out process that will require the assistance of an attorney that specializes in the disability laws. You must be prepared for the Social Security Administration to deny your request the first go around, because nearly every applicant is, but this does not mean that you should delay the process for any amount of time. Instead, start all over from scratch and make your case even stronger. It is also important to note that the approved monthly payment will probably not be what you expect. However, it will be enough to survive on without giving you any extra for big-ticket items, vacations and a luxurious lifestyle.