A medical emergency can leave you cash strapped anytime. In India, 70% of medical expenses are borne by customers, out of which 95% are funded through cash-in-hand. Along with rising healthcare costs, the pandemic now poses an additional risk factor for out-of-pocket expenses.
Out-of-pocket expenses can derail your savings and future financial goals. If you find yourself facing such a circumstance, you can choose from these 3 options to pay your bills.
Tip # 1 Apply for a Personal Loan Online
With minimal documentation, absence of collateral needs, and low-interest rates, personal loans could cover emergency medical expenses. You can apply and upload documents for a personal loan online, to get your amount in a very short time. The repayment terms will depend upon your creditworthiness and desired loan amount. The loan amount can range up to ₹40 lakhs, which can be beneficial for covering planned and emergency surgical procedures.
It would be a good idea to check eligibility and repayment capacity using a personal loan EMI calculator. Also consider shopping around for the best interest rates, fees, and repayment among lenders.
Tip# 2 Take a Loan against Property
If your need for funds is up to ₹7 crores, and you own a high-value property then consider taking a loan against the property. You can obtain up to 80% of your property value. With longer loan tenure, you can have a comfortable repayment plan.
The advantage of this option is that you can get funding against all kinds of properties, like godowns, industrial plots, commercial plots and residences. Further, if you already have a previous loan against property, your lender can allow you to transfer the loan. Look for a bank that offers digital KYC facilities and a superior customer experience.
Tip#3 Plan for a Health Insurance
Many types of health insurance plans exist to offer you complete protection in times of medical crisis, whether it includes hospitalization or not. For instance, you can choose critical illness plans which provide lump-sum benefit on diagnosis of terminal diseases like cancer.
A vital advantage of health insurance plans is that they can be used to repay any existing debt. For instance, if you apply online for a personal loan during an emergency, you can use your insurance pay-out to repay the loan back. Moreover, you can avail tax benefits too.
Look into various features of an insurance policy like the network of hospitals, claim process, waiting period, and maternity cover options before choosing the right one. Many plans have floater options to cover your family members. If you have aged parents, they can get senior citizen policies.
The terms and conditions associated with all these funding options should be carefully checked to avoid stress and unwanted hassles during an emergency. To get the best terms in personal loans and health insurance, conduct detailed research online. Remember, that applying for too much credit at one time can harm your credit score.