Sustenance is becoming more and more difficult day by day. The prices of all basic necessities are at an all time high, and basics such as medication, hospitalisation, chronic illness treatments, primary healthcare, etc. are becoming difficult to afford. Here is where you need to create a strong financial safety net which will catch you when you fall.
These safety nets could look a lot like health insurance, emergency savings, term insurance policies, or alternate investments/incomes. Such backups help you stay prepared for all kinds of medical eventualities.
How Would Health Insurance Help You During Medical Emergencies?
Health insurance is usually the first choice for many people when it comes to having a financial backup or support against medical emergencies. Here’s how a good health insurance plan can help you manage your emergency medical expenses brought by accidental hospitalisation, pharmaceuticals, diagnostics, post-hospitalisation care, day-care, chronic illnesses, etc..
- You can manage medical costs without significantly hurting your pockets
- You can claim lump sums up to ₹5 crores through health insurance plans
- You can access a number of cashless benefits in addition to basic coverage
- You can get insurance coverage for your family through plans such as group personal accident insurance, family floater health insurance, etc.
Why is an Emergency Fund Important?
Emergency funds are the savings you keep aside as backup to utilise during emergencies and eventualities. You can remember the points given below when it comes to creating a solid emergency fund that will always have your back.
- You must keep these funds accessible at all times since a crisis could strike unexpectedly
- Choosing where to park this emergency fund safely should be a well-thought decision
- You don’t want to keep your funds in a place where liquidating them would invite a penalty
- Build a set of funds close to a minimum of ₹1 Lakh for proper coverage
- Short-term emergency funds are always easier to liquidate
- Long-term emergency funds will bring you higher returns for parking them for a long period
How Will Term Insurance Help?
Term insurance is simple. You pay an insurance premium for up to 30 years to maintain your term life insurance policy. In the event of your unfortunate demise, your family or your beneficiary will be given compensation or a cash benefit.
- Term life insurance claims can offer your family financial stability even if you’re not around
- This money can be used for sustenance or to pay off debts and liabilities
- If your term insurance has a personal accident cover, you will get compensation in case of accidental permanent disability
Why Should You Have More Than One Source of Income?
It is always beneficial to have alternate sources of income or to own assets that you can easily liquidate. Here’s why you should have an alternate source of income to manage medical emergencies and eventualities efficiently.
- Rental property, side hustles, reselling possessions, etc. could help you easily build savings
- Passive income sources can help strengthen your financial backups despite having other safety nets in place
- You can easily secure the financial future of your family even through sudden, unexpected events
How Can Discipline with Documents Help?
Another tiny little tip to keep in mind is to always have all kinds of documents handy, right from your personal identification documents to health insurance papers. Here’s how diligently keeping your documents handy can help.
- In the middle of an emergency, keeping your cool and a track of your necessary documents can be very difficult. Hence, having them all in one accessible place will be very helpful. This might seem trivial, but trust this one
- You will be wasting no time while dealing with paperwork-related procedures while resurrecting certain medical situations. The process will be quick and solve any issue on a time crunch
Let’s Cut to the Chase…
If you have such basics ready, you can always rest assured that no matter the medical emergency, you can cruise through without damaging your finances. This can deter a major chunk of stress and anxiety for you, and it can help you manage medical emergencies with a clear mind. Hence, keep this checklist in mind: emergency funds, health insurance, term life insurance, alternate incomes, and documents.
You can find options and tips for each of these money-saving tools in times of medical emergencies. You can scour the internet to read more about term insurance, health insurance, side hustles, investments, and emergency funds. With the right kind of information and knowledge to back you up, make all the right decisions to manage any medical emergency like a pro.
Also read: Rising demand for healthcare administrators