understand how your health can affect your finances

 Health and financial well-being are closely intertwined. People with financial instability often develop significant health issues, and likewise, significant health issues can create financial instability. The ability to maintain good health is part luck and part making healthy choices. A well-functioning health-care system is also vital.

A basic understanding of what is required to maintain good health goes a long way towards improving your chances of financial security. CNBC Financial Advisor council member Dr. Carolyn McClanahan — who is founder and director of financial planning at Life Planning Partners, a member of the National Association of Personal Financial Advisors (NAPFA), the Financial Planning Association and the American Academy of Family Physicians — shares questions to help you understand how common health issues and health-care policy can affect finances.

1. How much more does a person with high blood pressure pay in annual health-care costs?

• $540
• $1,265
• $1,920
• $5,268

2. Which is true?

• Being poor results in more health problems
• Health problems can cause poverty
• Both a and b are true

3. Obesity makes it difficult to obtain life insurance.

• True
• False

4. Always following the doctor’s orders is the best way to lower health-care costs.

• True
• False

5. What is the economic cost of depression in the United States?

• Under $100 billion per year
• Between $100 billion and $200 billion per year
• Over $200 billion per year

6. What is required for health insurance to cover pre-existing conditions?

• The insurance company must sell a person insurance no matter the type of medical problem they have.
• The insurance company must not be allowed to price insurance based on health.
• The insurance company must not be allowed to price insurance based on any other personally identifying characteristics such as job status or education history.
• All of the above

7. What health problem costs Americans the largest amount of money?

• Diabetes
• Neck and back problems
• Heart disease
• Lung disease

8. Health savings accounts are not a good way to save for future health-care needs because the balance is lost if not spent by the end of each year.

• True
• False

9. What causes the most health expenses at the end of life?

• Lack of communication about health-care wishes
• Chemotherapy
• Nursing home care

10. What investment in our health-care system would have the biggest return on investment and reduce our health-care costs?

• Increasing the number of physicians
• More development of generic medication
• Improved funding in primary care