A WORD FROM THE AUTHOR: Hi everyone! Apologies for the lack of articles over the past three weeks. I took a vacation in San Francisco and had a small health scare which led me to the Emergency Room once I returned to Los Angeles. I want to take a moment to say that everything is now fine, but this leads me to today’s topic on medical bills and your overall health. As always, I’m not a financial advisor but please enjoy!
What We Try to Avoid
All of us don’t want to think of our mortality. We avoid the mortality topic as much as possible, and we dance around the idea that the day may never come. As life cycles come to an end, what happens to our finances? Can we pass down our legacy? If you don’t secure the right steps while living, your financial beneficiaries may never see a dime of all the hard work you put in throughout your life.
While in the Emergency Room last month, I had a few thoughts racing through my head like “I would pay anything to feel better,” or “I wonder what the bill will be.” In fact, when confronted with these emergency situations, most of us would trade our entire fortunes to secure one more day.
Living in America isn’t easy when it comes to healthcare. There are payments on your health insurance called premium deductibles and what really is a co-pay? I’d like to take a moment to discuss the proper steps we need to take today to secure our fortune for the future.
Estate Planning
Estate planning is a fancy word for what happens to your belongings after you die. A written will is a basic form of estate planning but there are many types of planning when it comes to your legacy. Through estate planning you can:
Establish a dependent
Set funeral arrangements
Limit taxes by setting up a trust
You can estate plan through a local attorney or at your local bank. It’s a conversation you should have once you’re in a stable spot in your life. We’re not guaranteed any days so I implore you to set up a conversation with an estate planner as soon as you can. If you’re left without a will, the government will intervene and allocate your assets as dictated by state law.
Medical Bills
Another situation you’ll find yourself in is a medical bill eventually. Most American health insurance policies cover only a certain percentage of the amount, leaving you to pay the rest as the insurers see fit. A few personal tips on your health insurance provided by your employer:
Be sure to review your plan every year. Upgrade as needed
Start a Health Savings Account (HSA) with your employer if possible
Account for any life milestones (having children, etc.) when selecting a policy for the next year
Once you receive your medical bill, be sure to pay it off in full almost immediately. The laws vary from state to state but medical bills can impact your credit score and other finances later down the line. If you refuse to pay, the state will seek reimbursement within six months generally to collecting agencies.
The Best Health Tip
Your finances are only as good as your health. The best tip I’m recommending here is to ultimately take care of yourself. Be sure to do the following each day:
30-45 minutes of exercise
Eating a balanced diet
Avoid too much consumption of alcohol
These choices add up over the long run and your body reflects your lifestyle through your health. If you want to be wealthy in the long run, take care of your health every day.
Take care,
Jordan