Strengthening your financial position to face unexpected health events is extremely important (Shutterstock)

In a world of ebbs and flows, the unpredictable nature of life is a constant reminder that being prepared for the unexpected is crucial.

In a Forbes report, Carolyn McClanahan, a seasoned financial expert at the crossroads of finance and medicine, shares critical insights on strengthening one's financial position in the face of unexpected health events.

McClanahan points out that unexpected circumstances such as a sudden health crisis - whether it is a stroke, a heart attack, or an unexpected accident - can radically change the course of our lives.

Drawing on her extensive background in both finance and medicine, McClanahan highlights 3 key financial habits that can help individuals overcome these doubts with resilience and insight.

1- Simplify your financial life

McClanahan stresses the importance of keeping your financial accounts streamlined.

“You should never have more than one account,” she advises, adding, “Simplifying your financial life makes it easier for you or your surrogate to manage finances during a health crisis, covering everything from paying daily bills to covering other life expenses.”

2- Basic legal documents

Having the correct legal documents is crucial.

McClanahan recommends having a financial power of attorney notarized by a lawyer, which ensures that it is recognized by financial institutions.

The presence of legal documents is of great importance for managing financial matters during health emergencies (Getty)

3- A list of assets and invoices

To ease the burden on your power of attorney during a health event, McClanahan recommends creating a “master instruction sheet.”

This sheet, kept in a simple spreadsheet, should include details about access to financial information, assets and invoices.

Regular updates, every 3-6 months, ensure that information stays up to date.

The expert points out that account security measures, such as two-factor authentication, make sharing financial information difficult.

McClanahan advises making sure your agent knows how to access your phone, which is often a key means of accessing the account.

In the event of death, McClanahan warns, bank accounts with no joint owners can quickly be frozen, affecting auto-pay bills.

To deal with this situation, the expert stresses the importance of maintaining assets and paying bills in a simplified manner, updating legal documents, and ensuring that financial and health care alternatives are disciplined.

While organizing your finances requires an initial investment of time, ongoing care only takes a few hours a year, McClanahan concludes.

These efforts, according to McClanahan, can be invaluable in mitigating the financial repercussions of an unexpected health event, saving time and reducing stress for you and your loved ones.

Source: Forbes