The current Covid-19 crisis has resulted in a huge increase in medical emergencies. The pandemic induced by various lockdowns has further aggravated the problem by reducing the income of many households.
Raghuvir Gakhar, CEO of PC Financial, “It is health which is the real wealth and not pieces of gold and silver…”, said Mahatma Gandhi rightly. Today we understand this better when the pandemic wreaked havoc leading to a health emergency across the world. We have learned to put health above all else. However, at the same time, it is absolutely necessary to stay prepared for any unforeseen situation. “
Therefore, the need to strengthen financially is crucial. For example, if a medical emergency arises, a person should be provided with sufficient funds to enable them to cope with it.
Here are some important tips that can help you stay prepared for medical emergencies;
Emergency fund – Experts say there is nothing more important than maintaining an emergency fund that will get you out of any tough situation. Ultimately, the amount of the emergency fund should be sufficient to cover at least 6 months of expenses. Additionally, financial planners advise never to keep the entire emergency fund in a savings account.
Gakhar says, “Invest some in stocks that are easy to liquidate. This will help achieve better yields and also ensure uptime in an emergency. You have to get into the habit of keeping a certain amount on the income each month for the emergency fund.
Medical insurance – With the current trend of rising medical costs, it is impossible to pay such huge medical bills in hospitals and that too from a monthly salary. It is therefore essential to have health insurance for the whole family.
Gakhar adds, “Although organizations provide medical insurance coverage, it should not be completely relied on due to the current labor market situation. There are several companies offering medical insurance with a range of coverages. Choose a plan that works best for you and your family.
Life insurance – Life insurance plays a central role, especially if you are the sole breadwinner in a family. It is beneficial because it can enable families to deal with any medical emergency with sufficient funds available to them. According to the IBEF (India Brand Equity Foundation), the expected annual growth of the life insurance industry in India will be 12-15% over the next 3-5 years.
Quick personal loans – Considering the financial urgency of their own customers, many banks offer instant loans. These loans do not go through a long approval process and therefore can be opted for instantly. During a medical emergency when you need funds, it makes sense to opt for loans from these banks.
Gold loan – Banks offer loans against gold jewelry and a customer in case of emergency. This can quickly go from Rs 10,000 to Rs 1 crore with gold jewelry.
Gakhar says, “This is a practical option when a person is facing a medical emergency and is in need of funds. Its straightforward application process makes it one of the easiest options for quick credit. In addition, it should be noted that the interest rates are nominal because the gold acts as a good collateral for the repayment of the loan.
In short, there are a variety of options for quick credit in an emergency, but you should always be aware and prepared.
Industry experts say that while one can never be fully prepared for a medical emergency, it is only smart to know what all of the credit options are available.