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The COVID-19 pandemic and its associated conditions have taught everyone the importance of being prepared for medical emergencies. And, as the problem continues to wreak havoc in our lives, we need to be prepared both mentally as well as financially for such situations in 2021.
Yoga, meditation, and positive thinking can help you remain positive and make you strong enough to face any situation mentally. But you will need to plan your finances to deal with any kind of medical emergency. This includes locating the best bank for opening a savings account and getting a personal loan pre-approved for use at a later time.
Funding Options for Medical Emergencies
Medical insurance is the best option to deal with the funding for medical emergencies, but still only a few have access to it. A large proportion of the public still does not have medical coverage and relies heavily on other sources to foot their hospital and other medical bills.
Some of these options are:
Savings Account
Savings from our regular income are the primary source of funding for all our emergencies. You must maintain financial discipline and keep aside certain funds in your savings bank accounts for use in the tougher times. You can either save a specific percentage of your income every month or any additional income that you earn. This will help you build a corpus that grows over time due to the effect of good savings interest rates offered by banks.
Borrow from Friends and Family
Although you always have the option to approach your friends and family for loans in case of a medical emergency, in certain situations you may not be able to do so.
Credit Card
Credit cards are attractive financial instruments that offer you instant access to interest-free credit for a specific time. You can always pay your hospital and medicine bills by using your credit card. The process is quick and instant. You can avoid paying interest on the borrowed amount by paying the credit card bills before the due date. You can also use two to or three credit cards with different billing cycles to reduce your interest cost.
Personal Loans
Another quick and attractive option to fund any kind of medical emergency is personal loans. The eligibility requirements for these loans include a minimum age, salary or income, and a good credit score. You can even take a pre-approval for personal loans and use the same in times of emergencies. A good credit score will help you get a personal loan at attractive rates.
Loan Against Property
Another option is to seek a loan against your property. In this case, a certain percentage of the value of your property is lent to you and the same needs to be repaid in Equated Monthly Instalments or EMIs over time. The process of getting approval may, however, take some time.
Using the funds in your savings account is the best option as you are using your own funds and the only cost you incur is the loss of savings account interest. The use of credit cards to pay medical bills is also a good option as long as you repay the borrowed amount on time. You can choose from the various options depending on how much funds you need and how urgently you need them. You can even use a mix of two or more funding options.
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