Health Emergencies and Your Money
Health problems don’t send calendar invites. Whether it’s a sudden diagnosis, a slow recovery, or a family member who needs long-term care, life can change in a heartbeat. And when it does, being financially unprepared only adds to the stress.
The good news? Planning ahead doesn’t require a law degree or a mountain of paperwork. It just takes a few smart steps, done while you’re still healthy, to keep money moving, accounts accessible, and loved ones supported during life’s most unpredictable moments.
What Health Crises Expose in a Financial Plan
Israel’s national health system (Kupat Cholim) covers many medical expenses, but not all. Home assistance, specialized treatment, medical equipment, travel to appointments, and even remodeling a home for accessibility often fall outside of the standard coverage. These expenses can pile up quickly. At the same time, a person dealing with illness might not be able to work, meaning there’s less income just when costs are rising.
When funds are divided between Israeli and U.S. accounts, things can get messy. Transfers may be delayed. Currency exchange issues can add friction. And if the money’s not where it needs to be when it’s needed most, small problems can escalate quickly.
Make Liquidity and Access a Priority
The first layer of protection is an emergency fund, but not just any emergency fund. It needs to be liquid, meaning cash or cash-equivalent funds that can be used immediately. Real estate doesn’t count. Neither do long-term investments that require paperwork or penalties to access. Ideally, a person should have three to six months of household expenses set aside and ready.
When accounts are cross-border, it often makes sense to hold at least part of this reserve in Israel. Shekel-based expenses are easier to cover when shekels are already in the bank. Medical emergencies often move quickly. The fewer steps it takes to pay a bill, the better.
But it’s not just about where the money is—it’s about who can get to it. Without prior authorization, even a spouse or adult child may not be able to access U.S. accounts.
Don’t Overlook Legal and Medical Authority
If someone becomes incapacitated, financial access isn’t the only concern. Who makes medical decisions? Who signs off on treatment? That’s where healthcare directives come in. These documents let a person choose who will speak to the doctors and what kind of care they want (or don’t want) in specific situations.
In Israel, a durable power of attorney—called Ippuy Koach Mitmashech—can authorize someone to handle personal care, medical issues, and finances, even if the person becomes mentally or physically unable to make decisions. It’s essential to have this drafted and filed by an Israeli lawyer who knows the system.
It’s also important that medical and financial authority align. The person making health decisions should be able to access the funds to pay for treatment. Without that coordination, even well-intentioned family members can hit red tape.
The Importance of Ongoing Reviews
Health emergencies bring chaos, and chaos and outdated paperwork don’t mix well. That’s why regular check-ins are crucial, especially when life changes. Marriage, divorce, moving to Israel, the birth of a child, retirement, or a new diagnosis should all trigger a review.
One often-missed detail? Beneficiary forms. U.S. retirement accounts like IRAs, 401(k)s, and insurance policies pass according to the beneficiary on file—not what’s written in a will. If the form still names an ex-spouse, that’s who gets the money. It happens more often than people think. These forms should be checked (and corrected, if needed) after any major life event.
Even if nothing has changed, a once-a-year review is wise. Go through the emergency fund. Double-check Arechat Yameem is in place (which allows the joint owner of an Israeli bank account to continue using the funds if the other account holder dies). Confirm trading authority paperwork and power of attorney are up to date. Make sure beneficiary forms reflect the current plan. Set it on the calendar—it’s one of the most valuable financial habits to build.
Note: This article is for educational purposes only and is not intended as financial, legal, or tax advice. Please consult a qualified professional before making any decisions.
Not sure if you’re truly prepared? Want to check whether your current setup would hold up in a real emergency? Get clarity with a free Cross-Border Financial Evaluation. We’ll review your situation together to see if and how we can help.
