For families with high spending, preventing "poverty from illness" involves more than just handling medical expenses—it's also about protecting their upscale lifestyle, valuable assets, and overall wealth from the unexpected costs that come with serious health issues. The methods to achieve this extend past regular health insurance to ensure financial security for the family.
Ensure Access to Elite Global Healthcare
Typical health insurance usually limits you to local medical facilities. However, dealing with serious illnesses might necessitate treatment at prestigious global hospitals, such as the Mayo Clinic in the U.S. or Charité in Germany. Consider investing in “international medical concierge plans,” which provide services like private jet travel to these hospitals, luxury suite accommodations, and access to highly regarded specialists. The important aspect is to avoid plans that restrict “out-of-network” expenses; instead, choose options with unlimited coverage to safeguard your savings during critical treatments.
Protect Assets Through Healthcare Trusts
When illness strikes, it often leads to legal challenges or the forced sale of assets. Establish a “healthcare protection trust” to keep essential assets—such as luxury real estate or art collections—safe from medical financial risks. If a family member requires expensive long-term care, the trust maintains these assets, while funds specifically designated for healthcare are used to cover costs, made possible through regular contributions. Unlike basic trusts, this setup addresses medical needs without jeopardizing the family's heritage.
Wealthy families may encounter unforeseen medical costs like in-home nursing, specialized medical devices like luxurious mobility aids, or mental health support for those caring for family members. Most insurance does not cover these expenses, so it's wise to include “comprehensive lifestyle riders” in your policy. For instance, such a rider could fund a full-time nurse for someone with a chronic condition or therapy for partners coping with the stress of caregiving. These expenses can accumulate rapidly—neglecting them could harm your savings.
Integrate Life Insurance with Medical Risks
While standard life insurance pays out after someone's death, “living benefit life policies” provide monetary support during a severe illness, such as cancer or organ failure. These funds can be utilized for experimental treatments that insurance might not cover or to replace lost income if you need to pause your job to care for a family member. For those with higher expenditures, select policies that offer substantial benefit limits (like $10 million+) without reducing payouts due to pre-existing health conditions.
Limit Dependence on Employer Health Plans
A number of high-spending individuals depend on employer-sponsored health coverage, but these plans frequently do not accommodate luxury medical necessities (like private rehabilitation centers) and disappear if you change jobs. Consider adding a “standalone high-net-worth health plan” that remains with your family regardless of your work status. This plan should fill in gaps, covering options like medical tourism or alternative treatments, such as upscale wellness retreats for recovery after surgery.
By concentrating on these aspects, families who spend a lot can transform healthcare planning into a way to safeguard their assets. Staying healthy is important, but it's equally crucial to make sure that sickness doesn't diminish the lifestyle and legacy you have created.
