Make medical and financial preparations

USA Today (Society for the Advancement of Education), Oct, 2007

Whether you or a loved one is going for a scheduled hospital stay, do not stop with your doctor's orders--get your financial orders in place, too. While most people exit the hospital without incident, no matter what your age, it is important to have an action plan in place if you become disabled or die after surgery or other treatment. Actually, it makes sense to have these elements in place even if you are not facing any immediate medical need. Make it part of your family disaster plan, advises the Financial Planning Association, Denver, Colo.:

Check insurance coverage. Contact your provider well in advance to determine out-of-pocket costs for surgery or treatment and be certain you have all necessary pre-approvals for that work. If additional cash is needed to cover deductibles, put that money aside where it can be accessed. Also, check disability coverage--hopefully you have personal coverage to extend the reach of limited coverage at work--to make sure you understand the effective date and the range of benefits. Above all, see that you are up-to-date on premiums for health, disability, life, and long-term care coverage, and that all beneficiaries are current.

Designate a family member as your primary contact. This person may or may not be your health power of attorney, but you should have one person designated to keep in touch with the family, friends, and employers you designate they call. This person also could see that your bills get paid if you are out of commission longer than anticipated.

Get health care directives in place. A health care directive--also called an advance directive--specifies your medical wishes in case you are incapacitated. It comes in two forms: the living will and the power of attorney for health care. The living will indicates specific wishes about medication and life-support treatment if you are incapacitated. Remember, too, that you need to refer to your own state laws on how these documents should be written. The (durable) power of attorney for health care also specifies your wishes for treatment, but allows you to designate a specific person to act in your stead if you are incapacitated.

Set up accounts properly. Your health care power of attorney may or may not be the person with the power to disburse your assets if you are incapacitated, but that person should have his or her name on a joint checking account in case bills need to be paid. Also, make sure you have a line of credit established that your designated representative can access in case of emergency.

Make sure your will is current. No one expects to die in the hospital, but it is necessary that your will be up to date so your spouse or designated executor can step in immediately to handle your affairs.

Have an up-to-date "disaster" file. If you are incapacitated or die, it makes sense to have all critical papers in one place so your health care power of attorney, your executor, or a trusted friend or family member can access them.