How to Protect your Savings from Medical Bills

You can protect your savings from medical bills by taking a number of steps. For example, keep children savings into the name of each child and this will protect you from sharing anything for servicing your medical bills from them. Also, you can avoid owning any property i.e. real estate, whose record is open to public. If a partner i.e. husband is a higher risk spouse, wife can have the maximum savings into her name. This can help you protect your savings from medical bill. Health insurance is another and most commonly used method to protect your savings being spent on the medical bills.

Instructions

  • 1

    If you have some savings and want to protect them, search and study in details all pros and cons how can you do so. Medical bills and taxes are the two heads to which your savings will always be exposed, and you can strategically keep your savings for the difficult times by protecting them from medical bills.

  • 2

    One way is to have health insurance. If your family is protected by the health cover, your savings are likely to remain intact for the longer run. However, it can depend on the type of cover you get, whether it is comprehensive one or not, and if not your savings can still be exposed at times when you face any serious health emergency.

  • 3

    Keep you children savings into the name of your each child. For example, it can be savings for their education etc, and if they are not in your name, you can avoid servicing any bill at the cost of your savings. Do not keep children savings in your name or in the name of your spouse.

  • 4

    If you have invested your savings in a real estate project, do not own property in your name. However, carefully decide to name the property to a person's name. It can be your child, but make sure the person is trusted member of your family and does not make it a controversial issue in the future. For example, they might try to declare their ownership on the property.

  • 5

    You can plan savings in a way that higher risk spouse owns nothing. For example, if husband has a better job than wife, the husband should own nothing. However, the amount should be within a limit. In some cases higher savings are also exposed to higher taxes. So make sure you strike a balance between saving and liabilities to the state.

  • 6

    Sometimes putting your savings into separate saving schemes can help you protect from the medical bills and other liabilities. This is particularly helpful if the state has a particular scheme on the offer to encourage people for making savings. Sometimes governments offer tax-free savings schemes and you can benefit from them.

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