AVOIDING BANKRUPTCY DUE TO ILLNESS
Feb. 2, 2005
A new Harvard study has found that many Americans are just one serious illness away from medical bankruptcy, even if they have health insurance. Mellody Hobson, "Good Morning America's" personal finance expert, offered the following "Takeaway" tips on how to avoid a financial catastrophe due to illness on "GMA:"
1. Get a home equity line of credit, before anyone in your family gets sick. You can get pre-approved for the line of credit -- but you'll only use it as a safety net in case something does go wrong.
2. Make sure your family has disability insurance, so you'll be able to pay your bills even if you can no longer work. If it's not available through your employer, you should still consider getting disability insurance, which can cost as little as $2 a day.
Click here for more advice from Mellody Hobson.
A new Harvard study has found that many Americans are just one serious illness away from medical bankruptcy, even if they have health insurance. Mellody Hobson, "Good Morning America's" personal finance expert, offered the following "Takeaway" tips on how to avoid a financial catastrophe due to illness on "GMA:"
1. Get a home equity line of credit, before anyone in your family gets sick. You can get pre-approved for the line of credit -- but you'll only use it as a safety net in case something does go wrong.
2. Make sure your family has disability insurance, so you'll be able to pay your bills even if you can no longer work. If it's not available through your employer, you should still consider getting disability insurance, which can cost as little as $2 a day.
Click here for more advice from Mellody Hobson.
