How To Plan Your Finances To Be Prepared For A Medical Emergency?
A medical emergency does not knock before entering your life. You cannot predict its arrival or departure date and time, but you can be well-armed financially to be able to face it strongly, without having to worry about the costs attached to the treatment.
Being prepared for a medical emergency financially would bring about two advantages for you. One, you would not have to compromise on the quality of treatment for yourself or your loved ones. Two, you would not have to go seeking funds when faced with such an emergency.
Preparing your finances for a medical emergency
Here is a road map that would prepare you for the worst-case scenario, provided you take it up right here right now and start building upon it for secure handling of future unpredicted medical occurrences.
Signing up for a medical insurance
Getting your family health insurance that covers critical illnesses is one of the most secure ways of preparing for any unforeseen medical expenditure. While a salaried employee might get medical coverage from their employers, a self-employed person would need to choose the right health insurance scheme that would protect them, and their close kin, in the long run.
Important key points that you need to look for when buying a medical insurance policy:
- Your capacity to pay the premium amount
- Personal preference and requirement
- Whether the policy has cashless hospitalization facilities or not
- The reimbursement formalities on incurred costs
Building an emergency fund
It is highly essential to prepare for a ‘rainy day’ much ahead of the onset of the crisis itself. In other words, you need to accumulate and build upon a fund to meet medical emergencies by setting aside a portion of your savings regularly. Here are some basic tips that would assist you in doing so:
- Do not hesitate to pinch down on your monthly expenses
- Keep aside your annual bonus for medical discrepancies
- Opt for a personal loan, if required, and save that amount as a medical emergency fund, as personal loans are easy to get, can be paid on monthly instalments, and do not make a hole in your pocket.
Every penny saved is a penny earned, and one day you would be thanking your stars for this saved-up cash that gets accumulated as a lump sum in your medical emergency account.
Maintain a good credit score
In case of any financial emergency, the one thing that would help you to fall back on is a good credit score. Hence, try maintaining a high credit score as it can fetch you two things:
- It can assist in expediting the process of a loan disbursal
- It can help in getting a loan at a lower rate of interest
Plan ahead of times
Apart from taking out a family health insurance, or setting aside a lump sum for healthcare, another very important factor to be considered is, to appoint a person who would manage your money in your absence. Hence, you need to:
- Decide upon a beneficiary for handling your accounts and policies
- Update the person in charge about the health policy that you have invested in.
- Familiarise them with how to encash and make use of the policy
Final take
Remember, a medical emergency not just takes a toll on your health, it even jeopardizes your future wealth plan and shakes your financial standing. If you have a monetary crisis to deal with during a medical mishap, your recovery process would slow down due to the mental pressure that it would create. Hence, it is extremely essential to be fully prepared to face the tides of medical storms with a proper monetary guard as your anchor so that you recover both mentally as well as physically.
The need of the hour is to safeguard your near and dear ones with an adequate health insurance plan. And, to avail one such medical insurance in Dubai, Gargash Insurance is a trusted name. Trust them for all our health insurance needs.
