Often there are situations in life when it becomes difficult to arrange funds and we need to take decisions that can make or break our financial health. Financial emergency is one such situation when the possibility is very high to lose out a large chunk of your savings paying medical bills. The Covid-19 like health crisis can completely wipe out all our savings.
That is why, health cannot be taken for granted and one must be prepared for it and have an insurance coverage that protects your family in case of health emergency. Managing health emergencies can be difficult if you are not financially prepared for them.
However, there are a few things you can do to save money and get the care you need. It is important to have a plan in place for how you will pay for unexpected medical expenses. This could involve having a health insurance policy with high coverage limits. Here are several steps you can take to handle health emergencies:
Budgeting
Every person or family may have different healthcare needs. That is why it is recommended to allocate a portion of your monthly budget specifically for healthcare expenses. This can include insurance premiums, regular check-ups, and contributions to your emergency health fund.
Also Read: How much money is enough for you and your family?
Emergency Fund
Create an emergency fund specifically for health crises. Even a small amount saved regularly can be immensely helpful during emergencies. This fund can help you handle multiple emergencies and protect your investment when you need big amount to pay up hospital bills.
Regular Health Check-ups
Prevention is better than cure. This is an old saying and we must pay attention to this to ensure we maintain a healthy lifestyle. Invest in preventive healthcare by scheduling regular check-ups. Early detection can prevent the escalation of health issues, potentially reducing treatment costs.
Health Insurance
It must have for everyone as it is not just about protection your investment but also safeguarding yourself against health crisis. Invest in a comprehensive health insurance policy. Look for plans that cover emergencies, hospitalization, and critical illnesses. Compare policies to find one that suits your needs and budget.
Adhil Shetty, CEO, Bankbazaar.com, says, “Health insurance is crucial as it safeguards against financial strain caused by medical expenses. It provides access to quality healthcare without significant out-of-pocket costs during emergencies. By paying a reasonable premium, you can mitigate the risk of large medical bills, ensuring timely and adequate care.”
Review Regularly
You must periodically review your insurance coverage, emergency fund, and financial plan. Update them based on changes in your health, income, or family circumstances.
Use Network Hospitals
If you have health insurance, use network hospitals as they often offer cashless facilities, reducing the immediate financial burden during emergencies.
Online Medical Services
These days it is possible to interact with health experts without physically visiting a hospital for minor health problems. Explore telemedicine options for initial consultations or minor health issues. These services can be cost-effective and convenient.
Emergency Credit
While it can be the last resort, having access to emergency loans or a line of credit can serve as a last resort during a health crisis. Explore options like personal loans or credit cards with lower interest rates specifically for medical emergencies.
Negotiate and Inquire
Inquire about costs upfront whenever possible. Sometimes, hospitals may offer discounts or payment plans. Negotiate bills and ask for a breakdown of charges.
Preventive Care
Focus on preventive measures to avoid health emergencies. Regular exercise, a balanced diet, and health screenings can help in early detection and prevention.
Stay informed about various health issues and possible preventive measures. This knowledge can help you make informed decisions and potentially avoid emergencies. By exploring different options and planning ahead, you can better manage health emergencies without completely depleting your finances.