Medical bills when you go it alone

Although you could be in trouble financially if you develop a serious illness or require prolonged hospital treatment, the advantage of this approach is that you could pass your savings on as inheritance if you are lucky enough to never fall ill and need them.

Tax relief on medical expenses can ease the blow of medical bills. With this relief, you can claim back up to 41 per cent of the cost of certain medical expenses if you are a higher-rate taxpayer.

If you are a lower-rate taxpayer however, you can only claim back 20 per cent of the cost. For example, if you paid €2,200 for eye laser treatment last year, this will cost you €1,298 if you claim back the tax relief and are a higher-rate taxpayer. If you pay tax at the standard 20 per cent rate however, you will only be entitled to €440 in tax relief, reducing the cost to €1,760.

If you plan to rely on tax relief to make your medical expenses more affordable, make sure that the treatment or care you receive qualifies for tax relief. Some of the things that qualify for relief include doctors' and consultants' fees, prescriptions from a doctor or consultant, treatment in a hospital or approved nursing home, routine maternity care, in-vitro fertilisation, wheelchairs prescribed by a doctor, orthodontic treatment, and surgical extraction of impacted wisdom teeth. The hospitals, doctors, dentists and therapists you see must also be approved by the Revenue Commissioners -- otherwise, you may not be eligible for relief.

If you have private health insurance, you can still claim tax relief on your medical expenses -- but only on those expenses which have or will not be reimbursed by your insurer.

If you decide not to buy private health insurance, or simply cannot afford it, check out the National Treatment Purchase Fund (NTPF) if you need hospital treatment. If you are a public patient on a public hospital waiting list and have been waiting over three months for an operation or procedure, you may get your treatment free of charge if you qualify for this scheme. Some of the treatments covered by the NTPF include cataracts, varicose veins, hernias, gall bladders, prostate operations, tonsils, plastic surgery, cardiac surgery and hip and knee operations.