Half of Americans Have No Idea What Would Happen to Their Bills If They Were Hospitalized for a Month

A new BestMoney survey of just over 1,000 U.S. adults found that 51% of respondents said at least some bills would go unpaid, or they had no idea what would happen, if they were hospitalized and unable to manage their finances for a full month.

Only 47.7% of respondents have a specific, trusted person who is fully prepared to take over their finances in an emergency, meaning they have discussed it and that person already has account access. Another 29.7% have identified someone but haven't had the conversation or shared any passwords. Having someone in mind is not the same as having a plan.

None of this reflects carelessness. It reflects a lack of planning: few people have mapped out what happens to their finances if they aren’t the one managing them. The survey identifies exactly where that gap occurs.

Naming a Backup Isn't the Same as Being Prepared

Preparedness varies dramatically by age. Younger adults are the most likely to have identified a backup person without completing the handoff:

The pattern is explained largely by time and life stage. Older adults have had more opportunities to have the conversation, more life events that force the issue, and often a spouse already integrated into their financial life.

The 18-29 group is different: they aren't simply less prepared, they're the most likely of any age group to have named a backup and stalled before completing the handoff. That gap is easily closed by having a conversation.

"The right time to designate a trusted person is well before any crisis, surgery or health scare enters the picture. Financial emergencies don't give advance notice, and a 35-year-old with a mortgage and young children has just as much at stake as a 70-year-old retiree. We encourage people to think about this the way they think about insurance. You put it in place not because you expect something to go wrong, but because life is unpredictable at every age."

— Eric Koestner, Principal and Head of Core Business Segment, Edward Jones

Younger Adults Are Least Likely to Have Anything Written Down

The survey also asked how people track the passwords, account numbers, and bill due dates a stand-in would need:

• 42.1% use a digital notes app or spreadsheet.
• 39.9% use paper.
• 35.0% use a password manager.
• 14.2% said none of it is written down anywhere.

That last group skews young. Among 18-29 year-olds, 22.5% said their financial information exists only in their memory, nearly three times the rate of adults 60 and older (8.3%). Older adults rely more on paper (50.0% vs. 25.6% for 18-29), while younger adults default to digital notes (50.4% vs. 29.8% for 60+).

None of these methods are inherently wrong, but keeping information only in memory fails the moment that person can't communicate. It's also the easiest gap to close. Write the information down somewhere a trusted person could find it, whether in a password manager with emergency access, a sealed document, or a shared note.

Difficult Scenarios Can Happen to Anyone, at Any Age

A loved one stepping in to handle your finances when you can't isn't an uncommon occurrence. 44.5% of respondents said someone has asked them to step in and manage their finances, such as paying a bill or accessing an account, because that person could not do it themselves. Of that group, 40% found it stressful and difficult to figure out, while 60% found it relatively easy.

The difference appears to come down to preparation: whether the person stepping in already knew where things were, or had to reconstruct someone else's financial life from scratch under pressure.

What Documents Do You Need to Make It Official?

After you designate a trusted person, make sure you have the right documents in place.

"There are several different ways to go about it, but the key is that the document must be legally binding. One of the most common and robust types of legal documents is called a durable power of attorney, which authorizes a trusted person to manage your finances if you're unable to do so yourself. That may include paying bills, managing accounts, and handling other financial responsibilities. Without it, a family member who wants to help may have no legal standing to act, regardless of how close the relationship is."

— Eric Koestner, Principal and Head of Core Business Segment, Edward Jones

Who Has a Plan and Who Doesn't, by Age

The clearest generational divide in the survey appears in the hospitalization question. When respondents were asked what would happen if they were hospitalized and unable to manage their finances for a full month, here's what they said:

Adults 18-29 are more than three times as likely as adults 60 and older to say they have no idea what would happen to their finances. This is notable because 18-29 year-olds are often the group least likely to think they need a financial safety net. The data suggests the opposite: they have the least visibility into what happens when their income and attention disappear, even temporarily.

"Many young people assume that difficult situations are more likely to happen to someone else, not themselves. There's also a widespread misconception that financial planning is only relevant once you've built significant wealth, when in reality, it's about protecting what you have at any age, and making sure the people who depend on you aren't left scrambling if something unexpected happens," adds Koestner.

What Family Members Would and Wouldn't Notice

Asked what would surprise a family member most if they reviewed their finances today:

• 43.4% said how much, or how little, they actually spend compared to what their family would guess.
• 13.6% said undisclosed debt, a figure that splits by gender: women were more likely than men to say a family member would be surprised by their debt (16.3% vs. 10.5%).

How Transparent Are Families With Each Other?

Full transparency is rare and increases with age:

• 26.8% of respondents said nothing would surprise their family because they already know everything.
• That figure climbs from 17.1% among 18-29 year-olds to 42.0% among adults 60 and older. Older couples, on average, appear more financially transparent with each other.

There's also a comfort gap. When asked how they'd feel about a family member reviewing their full financial history without them there to explain it, women were more likely than men to say they'd feel very uncomfortable:

• 24.6% of women
• 17.8% of men

Being prepared and being comfortable with someone seeing everything aren't the same thing, and the second one is worth addressing before circumstance forces it.

Everyday Habits That Contribute to the Gap

Several smaller findings round out the picture of how closely people track their own finances:

• 56.6% reviewed a full bank or credit card statement line by line in the past month, ranging from 34.1% among 18-29 year-olds to 81.2% among adults 60 and older.
• 31.6% have been locked out of their own account more than once due to a forgotten password or lost access, most often among 30-44 year-olds (37.7%).
• 38.7% estimate they're managing 3-5 active subscriptions, while 6.4% aren't sure how many they have.

None of these findings are alarming in isolation. Combined with the backup-person and hospitalization data, they paint a consistent picture. The accounts, passwords, and recurring charges that make up a person's financial life are largely kept in that one person's head, and most people have never tested what happens when that person becomes unavailable.

Where Life Insurance Fits Into the Picture

A hospital stay is temporary. The scenario in this survey, where some bills go unpaid, resolves within a month or two once the person recovers and regains access to their accounts. Losing that person's income permanently is a different problem entirely, and it's the gap term life insurance is designed to close.

Why Does the Handoff Matter More Than the Money?

The data shows the handoff itself, not just the money, is where things break down. A life insurance payout does more than replace lost income:

• Immediate funds: It gives the person stepping in, often someone only loosely designated as backup, immediate money to cover the mortgage, car payment, and bills while the rest is sorted out.
• No estate delays: Because it's paid directly to a named beneficiary, it isn't held up by the estate-settlement process that can delay other assets.

Why Should Younger Adults Consider Coverage Now?

The survey's clearest contradiction: 18-29 year-olds are the least prepared group on nearly every measure.

• Least likely to have a ready backup person
• Least likely to have anything written down
• Most likely to have no idea what happens to their bills if they're sidelined
• Most likely to lock in the lowest term life rates, since insurers price coverage based on age and health. Waiting doesn't make coverage cheaper, it only extends the window during which this gap remains open.

Term life insurance is built for exactly this kind of gap. Something that gets set up once, costs relatively little at a younger age, and works quietly in the background so a family isn't left reconstructing someone's financial life from nothing during the worst week of theirs. Anyone curious what coverage would actually cost for their age and health can compare life insurance quotes in a few minutes.

The Bottom Line on Financial Emergency Planning

Not sharing every password or documenting every account is not a failure; most people have simply never been prompted to plan for it. The fix costs nothing: choose a backup person, have the conversation, and write down what they would need somewhere they can find it. The other half of the fix, ensuring that person has money to work with and not just information, is what life insurance provides.

“Financial caregiving is often something families are thrust into unexpectedly, and the more preparation that happens in advance, the less overwhelming it can be. These conversations help create clarity, reduce stress, and ensure loved ones aren't left trying to piece together important financial information during a difficult moment,” adds Koestner.

Methodology: This BestMoney survey was conducted online among approximately 1,001 to 1,026 U.S. adults (sample size varies slightly by question due to skips), asking about financial documentation, emergency preparedness, and how well their finances would hold up if they were suddenly unable to manage them.