How to be Prepared Financially for Medical Emergency?

“Health is wealth”. Although clichéd, few words come closer to the truth. However, when health does suffer, it requires a significant amount of wealth. We always want the best treatment for our loved ones and ourselves; which comes at a cost. It is better to be prepared for such situations than run around arranging for funds during a medical emergency.

Here are 3 ways in which you can prepare yourself financially:

  • Get Medical Insurance – This is a preferred way of taking care of your financial needs during a medical emergency. If you are a salaried employee, your employer may cover your medical insurance. If not, or if you are self-employed, you should opt for medical insurance. Depending on your requirement and the premium amount you can shell out, there are a variety of options to choose from. The premium can be paid annually or monthly, depending on the plan you choose. Insurance companies provide cashless hospitalisation at a network hospital, or reimbursement on incurred costs. Medical Insurance is also eligible for tax exemption under section 80D of Income Tax Act, 1961.
  • Keep an Emergency Fund – Saving a set amount from your earnings every month can help you accumulate enough funds that can be useful on a rainy day. Even if it causes you to pinch down on your monthly expenses, you will definitely be thankful for having saved this money when an emergency occurs. You can also choose to set aside your annual bonus as an emergency fund. Another way is to get a Personal Loan and save that amount as your emergency fund. Personal Loans are easy to get, and are payable as easy monthly instalments; thus not burning a hole in your pocket. For example,  HDFC Bank offers Personal Loan EMIs at Rs. 2,162 per lac. Even more, the Personal Loan is disbursed in 10 seconds for select pre - approved HDFC Bank customers and in 4 hours for non – HDFC Bank customers. You can check your eligibility online with Personal Loan EMI Calculator.
  • Maintain a good credit score - Another important point that can help you in any financial emergency is maintaining a good credit score. Especially in case of an emergency, a good credit score can not only help expedite the process of loan disbursal, but also help in getting you a lower interest rate.

If you are in a medical emergency and find yourself struggling for funds, you may follow these steps.

To apply for a hassle-free Personal Loan with HDFC Bank, click here.

* Terms & conditions apply. Personal Loan disbursal at sole discretion of HDFC Bank Ltd.