This is how your health should factor into your financial planning

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When you think of health as part of a financial plan, you might think of insurance premiums and related expenses like co-payments.

While these expenses are important, your health should affect far more than a single item in a budget, according to board-certified financial planner and physician Carolyn McClanahan, founder of Life Planning Partners in Jacksonville, Fla.

“It’s a lot more than that,” said McClanahan, who is also a member of CNBC’s Financial Advisor Council. “A healthy person needs a completely different one [financial] Plan from someone who has health problems.”

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For example, McClanahan said, someone with significant medical problems — and therefore a shorter life expectancy — probably doesn’t need to plan to extend their retirement savings until age 100.

“It prompts them to save too much and they’re missing out on life now,” she said.

Insurability can become an issue

Additionally, there are types of insurance that can be difficult — if not impossible — to obtain once you have a medical condition, McClanahan said.

“A person with health problems or a risk to them needs to think more carefully about their insurance,” she said.

For example, if you are young but have a significant risk factor for diabetes, Life insurance policies would typically be cheaper now than if you applied for them after the disease struck.

Estate planning is crucial when you have health problems

Your use of healthcare should be taken into account This is how your health should factor into your financial planning

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