Appoint a stand-in. If you haven't done so already, give someone you trust durable power of attorney, so he or she can pay your bills and make financial decisions on your behalf should you become incapacitated. Have your lawyer draw up a health-care power of attorney as well, allowing someone you trust to make medical decisions for you as needed.
Keep covered. If you get health insurance through work and have to leave your job, sign up for a transitional policy known as COBRA. A lapse in insurance heightens the risk that a new carrier might be able to deny you coverage, citing a pre-existing condition. COBRA isn't cheap, but it'll be far less than paying the bill for a serious illness yourself.
Line up credit. You need a Plan B if you run through your emergency fund. Home-equity lines are often best because the terms are typically better than on other loans. Don't wait until you need the money to set it up. If future medical bills cause your financial situation to deteriorate, you may not be approved for the credit line later.
Don't be rash. Now is not the time to change careers or give away assets. "Many people become irrational [about money] when they are faced with a life-threatening illness," says Lauren Klein, a financial planner in Newport Beach, Calif. "Recognize that this is an emotionally disruptive time and think through your decisions before you act."
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