None of us wants to believe that we’ll be the victim of a sudden medical emergency. Yet, optimism bias can lull us into a false sense of invincibility—until a diagnosis, accident, or unexpected health crisis jolts us into reality. While you can’t anticipate the timing or nature of a medical emergency, you can take practical steps to ensure that your loved ones are financially equipped to cope with its impact. In this article, we outline key measures you can take now to safeguard your household’s financial resilience in the face of a medical crisis.
1. Make critical health information accessible
In an emergency, your family or first responders may urgently need access to your identity number, medical aid details, allergy information, chronic medication list, and consent to organ donation. Additional data, such as your blood type, the name of your GP, and the type of medical aid plan you’re on, can help save precious time. If your phone stores this information, consider how your loved ones would gain access. One solution is using the “Medical ID” function available on most smartphones, which can be accessed even when the phone is locked.
Consider: Store your medical and emergency contact information on a printed card in your wallet or glovebox, and give a copy to a trusted family member.
2. Plan for uninterrupted access to funds
In the event of hospitalisation, your spouse or partner may need to access bank accounts to cover living expenses, travel costs, or upfront medical bills. Without advance preparation, they could face frustrating security protocols and delays. Review who has access to which accounts, and ensure that emergency funds are readily accessible. Ideally, each spouse should maintain an emergency fund in their own name for this exact reason.
Consider: Avoid keeping all your emergency savings in one person’s account. Split access ensures better liquidity in a crisis.
3. Protect the household’s day-to-day finances
A sudden hospital stay should not bring your household’s financial functions to a halt. Debit orders must still run. Medical aid premiums, insurance policies, bond payments, and school fees need to be paid. Make sure a trusted person can access your digital banking profiles, either by securely sharing login credentials or setting up authorised users. Use a centralised, secure password manager that allows password sharing with a trusted contact—this provides access without revealing the actual password.
Consider: Choose a password manager that offers emergency access functionality, ensuring your family can access important information if you become incapacitated.
4. Double-check your beneficiary nominations
In the rush of day-to-day life, beneficiary nominations are often forgotten. Yet, these designations can have far-reaching consequences for your family’s financial security in the event of your death. Ask your advisor for a consolidated report of your policies and investments, and ensure your nominations and proportional allocations are up to date. Remember that for retirement funds, your nominations serve as a guide to the fund trustees, who are ultimately responsible for a fair distribution based on financial dependency.
Consider: Review all beneficiary nominations annually or whenever your personal circumstances change—especially after marriage, divorce, or the birth of a child.
5. Review your income protection benefit
In our experience, disability cover is often misunderstood until it’s too late. Your income protection benefit, in particular, is designed to replace your income if you’re temporarily or permanently disabled and unable to work. This benefit becomes a lifeline when regular earnings stop, but expenses continue. Our advice is to check your nominated benefit amount, waiting period (usually 90 days), and whether your cover is occupation-specific. Importantly, if your earnings or professional duties have changed, your policy may no longer reflect your needs, and a review of your cover would be necessary.
Consider: Any changes to your income, working hours, or employment status should trigger an immediate review of your disability cover.
6. Maintain up-to-date estate documentation
An up-to-date, valid Will is one of the greatest gifts you can leave your family, particularly when they’re dealing with a medical crisis or bereavement. Make sure someone close to you knows where your original Will is stored, as, without this, delays in estate administration are inevitable. Also consider a Living Will—a document that outlines your wishes not to be kept alive artificially in the event of irreversible health deterioration. Be sure to communicate its existence clearly to your family and doctor.
Consider: If your Will no longer reflects your current relationships, responsibilities, or assets, it may lead to legal challenges and unintended consequences—review it regularly to ensure it remains relevant.
7. Create a digital will
In our increasingly online world, consider how your family would deal with your digital life. A digital Will is an informal record of your usernames, passwords, and instructions for managing email accounts, social media, online banking, cloud storage, and subscriptions. List your accounts and decide who should have access, what should be deleted, and which accounts should be memorialised or closed. Many social media platforms—such as Facebook, Instagram, and Google—now offer legacy contact or account management options that allow you to specify what should happen in the event of your death or incapacity, and it’s worth investigating these options.
Consider: Store your digital will in a secure password manager or encrypted file, and share access with a trusted person through an emergency release mechanism.
8. Communicate your medical aid details
Knowing how your medical aid works can prevent unnecessary costs and stress. Does your family know which hospitals fall within your network? Do they understand the pre-authorisation process? Are they aware of your medical aid advisor, who can help navigate claims and hospital admissions? Without this knowledge, families can make panicked, misinformed decisions that result in large out-of-pocket expenses or co-payments.
Consider: Provide a one-page “medical cheat sheet” with key plan information, contacts, and emergency protocols, and keep it easily accessible in your home.
Medical emergencies can strike without warning, leaving your family to navigate a sea of practical, financial, and emotional decisions. While you may not be able to predict when such an event will occur, you can equip your household with the information, tools, and access they need to weather the storm. Procrastination is the enemy of preparedness. Take the time now to ensure that your finances—and your family—are protected when you need it most.
Have an amazing day.
Sue
