A 2009 MetLife survey found that 90 percent of employees plan to keep or increase work benefits as their company’s open enrollment season approaches. The survey also showed that 64 percent of American workers plan to spend more time evaluating their options this year because of the current economic conditions.

An unexpected medical emergency or prolonged condition can quickly become an overwhelming financial burden. In fact, studies show that medical debt is now one of the leading causes of bankruptcy.

If something unexpected were to happen to you or a family member, planning ahead can help you avert a serious financial setback. The best plan of action is to take proactive measures before an injury or illness strikes. To help you make the most of this year’s open enrollment season, perform an annual check-up of your medical insurance benefits by asking the following questions:

Does my plan cover pre-existing conditions? Not all insurance plans cover treatments for ongoing medical conditions like diabetes or heart conditions. Find out if there are limitations to your coverage, what they may be, and whether there is a mandatory waiting period before your coverage goes into effect.

Is my health coverage sufficient? Find out exactly what medical services are covered under your plan, and learn what preventive measures are offered. Ask if there are any limits on medical testing, surgical procedures, outpatient care, mental health assessments or prescription drugs.

What does my plan cost? Research your premiums and co-payments. Explore the difference in cost between using doctors in the network and those outside of the network. Find out if there is a limit to the maximum amount you would be expected to pay out of pocket.

What are my other options? Even if your current insurance plan appears to be adequate, it may be wise to review other options. There are many types of insurance plans that use a fee-for-service system, while Health Maintenance Organizations (HMO) operate on pre-paid services. Another type of insurance is called the Preferred Provider Only (PPO) plan, a combination of fee-for-service and pre-paid services. You may also be able to get group insurance coverage through membership in a labor union, professional association, club or other organizations.

No matter what you decide, do not be tempted to allow your insurance to lapse. Although no one plans to get sick, the old saying that “It’s better to be safe than sorry” is still true today. It is also best to protect yourself by establishing a savings cushion that contains at least three month’s salary in case of emergency. The comfort of knowing that you are prepared for the worst will do wonders for your mental health.

One-third of students are changing their college plans because of the economy according to the 2009 Back to College survey. The nationwide survey, conducted by Money Management International, measured the toll of the economy on students’ plans for attending and paying for college.

Tuition, room, and board for the average undergraduate student in the 2007 to 2008 school year cost $11,578 at a public institution ($29,915 at a private school) according to the National Center for Educational Statistics. That price, combined with the sluggish economy, is too much for one-third of survey respondents.

One-third of respondents say they are changing their college plans. Of those who say they are changing their plans for college, 38 percent plan to attend a less expensive school, 35 percent plan to go to a community college to complete basic courses, and 31 percent have decided to attend school closer to home. Four percent of students are postponing college and, shockingly, eight percent have decided not to attend school at all.

Students are shouldering more of the financial burden. Parents, less able to offer financial assistance than in years past, are passing the financial responsibility on to students. Of those surveyed, 86 percent believe students should apply for scholarships and/or grants to fund college costs.

Amber Collins, a sophomore at Louisiana State University, is a recipient of the Bill Gates Scholarship, which offers students as much as $50,000 a year to pay for school and living expenses. Collins took advantage of FastWeb.com, a site that uses students’ demographic and educational information to match them to scholarships and grants they are eligible to receive. Collins says she worked hard for her scholarship in high school, “I earned a 3.5 GPA, got involved in a great internship, and focused on my future so I could attend the college I wanted without worrying about money.”

For students who want the freedom to attend the college they want in the current economy, striving for academic excellence in high school and setting clear goals for the future should be a top priority. There are many options available to help students and their parents pay for school – the key is to do the research.

For more about college and credit, check out:

Earn an “A” in personal finance this semester
New & old ways to pay for an education
Money management for the first time adult

More senior citizens are taking on excessive credit card debt, leaving them financially vulnerable. Reduced retirement savings due to the stock market, increased medical costs, and fixed incomes leave many seniors no choice but to rely on credit cards to survive. In fact, a recent study by Demos found that the average self-reported credit card debt among low- and middle-income consumers 65 and older increased 26% from 2005 to 2008, to $10,235.  Debt for all borrowers surveyed only increased 3% during that time. Unfortunately, financial problems of seniors are so serious that the number of older Americans filing for bankruptcy has increased at alarming rates, making them the fastest growing age group in the bankruptcy courts.

While debt problems plague people of all ages, they are particularly difficult for senior citizens to handle. For example, many older Americans must forgo medical treatment and exhaust savings accounts in effort to repay debt. Following are some suggestions to consider if you or someone you know is experiencing financial trouble.

Prioritize your debts. Some debts are more important pay promptly than others. For example, you must continue to make mortgage or rent payments so that you do not lose your home. You must also pay utilities and provide food. Please do not be tempted to let your insurance coverage expire.

Know your rights. Do not feel “bullied” by collectors into making payments you cannot afford or paying debts that may not be yours. Visit FTC.gov and read the Fair Debt Collection Practices Act (FDCPA) to learn your rights when dealing with collectors.

Make a plan. Determine how you are going to repay your debts and present that plan to your creditors. Many creditors, particularly doctors and hospitals, may be willing to reduce your required monthly payments. If you are able to negotiate a revised payment schedule, get all of the details in writing to avoid future problems.

Be realistic. You may be used to caring for others rather than having others care for you. A 2007 study by HSBC Group, the Oxford Institute of Aging, and Harris Interactive, found that older people are much more likely to give care to younger generations than to receive it themselves. However, a 2009 survey of adult children revealed that the majority (67%) were more willing to give financial help than their parents think they would be.

Tap avaiable resources. You may have more resources than you realize. According to the AARP, a reverse mortgage can turn the value of your home into cash without having to move or to repay the loan each month. In addition, you have a whole-life insurance policy, you may be able to cash-out. You might also consider taking on a part-time job or selling unneeded assets.

Finally, don’t be afraid to ask for help. Research any and all assistance offered by local city and county government offices; you may also get help from your local United Way. 

Children of aging parents should read the blog post on Consumerism Commentary titled Helping your parents with their finances.