Managing your finances during unexpected medical events
Nobody wants to think anything negative in their lives. Unfortunately, whether we like it or not, medical emergencies happen and we can’t ignore them as well because health concerns are paramount. Medical expenses are unavoidable in nature and with medical costs increasing every year, it often gets difficult for the patient as well as for their family to pay for the expenditures.
The ideal way to deal with the situation is to have savings in name of emergency funds. But, what if your income is not enough to make those savings or even if you have some stash, it is not enough to cover everything? You obviously can’t ignore the patient or the expenses. So, the next best thing to do is to look for funds from the outside. Fortunately, there are options available today that help us in such unanticipated situations.
Personal loans – Personal loans are a great option to deal crisis. They are unsecured loans in nature and do not require any collateral in lieu of the money. Also, consumers can use the loan according to their requirement, unlike home loans that can only be used for the purpose of buying a home or other secured loans. Nowadays, every bank like HDFC Bank, ICICI Bank and NBFC like Bajaj Finserv provides the facility of instant personal loans. Consumers can visit various online portals, compare interest rates and apply for the bank offering the lowest rates of interest.
Instant personal loans are the wave of the future. In less than 24hrs, consumers can get personal loans disbursed in their accounts, unlike previously, when applying for loans was tedious and time taking. However, one needs to be eligible to apply for personal loans. Consumers with excellent credit history are eligible for pre-approved loans as well.
With low-interest rates, instant approval, zero documentation, and quick disbursal, personal loans are viable during the time of medical emergencies.
Credit cards – Credit cards are often looked like a financial tool for shopping. But they can prove to be quite useful in emergent situations. If you are low on cash and you don’t have enough savings, you can pay for your medical expenses through your credit cards.
Credit cards are a kind of short-term loans that can be used instantly and customer get enough time to repay it back. Even though the interest rates are higher than a normal personal loan, but you don’t have to apply or wait for any approvals if you already have a credit card. If not, you can apply for one because credit cards are a great alternative to cash. Check the eligibility criteria and apply directly on the website. If you have an impeccable credit history, you can easily get a credit card issued for yourself.
Medical Insurance – In today’s scenario, most of the people are rooting for medical insurance policies to pay for medical expenses. An insurance policy is an effective solution for covering any medical emergencies. Most of the insurance policies provided by insurance companies like ICICI Lombard andLife Insurance Corporation cover medical expenses like hospitalization, medical tests, medicine, and post-operative care. Consumers can go for cashless policies where they don’t have to spend a dime. The money is directly paid to the hospital by the insurance company.
Be aware that many insurance companies do not cover any existing medical issues and even if they do, they charge high premiums. This won’t be beneficial if your current problem is an after effect of the existing medical problem. So, before you take an insurance policy, make sure you have read all the terms and conditions carefully.
Emergency fund – Like said, emergencies can occur anytime and it’s best to be prepared for it. Every financial expert today recommends having an emergency fund because it is very helpful in such situations. This fund should be separate from other savings and must be saved every month. Putting some portion of your income every month aside will ensure that you are ready to face any challenge whenever it may come.
However, most people don’t believe in emergency funds because emergencies can occur anytime and you may have not accumulated enough to support your current situation. Also, you are not certain as to how many funds would be required to satisfy your needs. But this should not stop you from saving. It does not matter how much amount you save. Even small amounts can make a big difference in a crisis. Also, if you still feel the need of taking a personal loan, you can take a lower amount which is easy to repay as well.
To conclude, the only reason it is called unexpected is that you are not mentally prepared to deal with it. However, as humans, we don’t have any control over our situations and if they come, we need to make every possible effort to ensure that it does not pose major financial issues on us. Therefore, it is better to be prepared than worry.