How to Prepare Financially for a Critical Illness?
Preparing and planning for financial outcomes due to a critical illness can be a challenging endeavour. Having a critical illness can be devastating for both one’s health and finances.
Research has shown that financial issues arising from a critical illness often cause more psychological stress for patients than the physical symptoms and associated treatments. That being said, many patients and families face tough financial decisions in dealing with the diagnosis and long-term consequences associated with a critical illness.
Being aware of the possible financial implications of a major illness can help you and your family manage these illnesses in the most effective and efficient way possible.
Step 1: Check Health Insurance Options:
The first step in preparing financially for a critical illness is to research and understand different health insurance plans in India with their scope of coverage.
There are broadly 2 types of health insurance plans in India –
- Term Insurance Plans
- Whole Life Insurance Plan
Click here to read more about the different types of health insurance plans in India.
Taking the time to understand these policies and then buying the best health insurance plan as per your need can provide financial stability during an unpredictable time.
Step 2: Invest in Emergency Funds:
Beyond the coverage of health insurance, the cost of medication, treatments and therapies associated with a critical illness can accumulate quickly.
Hence, having an emergency plan in place for how to cover these expenses is essential. You may consider saving money in a flexible savings account or invest in liquid mutual funds or any other short term liquid investments.
Click here to know more about the best debt mutual funds to invest in for short term returns.
Step 3: Research Government schemes and other options:
Lastly, you can research different government-funded programs, or medical billing resources to apply for grants or other forms of financial aid for medical bills.
Talk to a Financial Advisor Today!
In terms of long-term planning for a critical illness, it is important to consult with a financial advisor about estate planning, decision-making for insurance coverage, and other forms of financial relief. Additionally, discussing the financial implications of a critical illness with family members may provide insights to better manage the situation.
Conclusion:
Preparing and planning financially for a critical illness is a difficult and complex problem. Educating yourself on insurance policies and available financial support is essential. Having a sound financial plan in place during this stressful time can make all the difference.
