5 Ways for Handling Unplanned Medical Expenses
5 min read | 3 months ago
In India, unexpected medical expenses often catch people off guard, especially with rising healthcare costs. Despite efforts to improve health insurance coverage, many households still shoulder a significant portion of these costs directly. Nearly 62% of healthcare expenses come out-of-pocket, impacting both rural and urban families alike.
As costs rise annually by about 14%, individuals without adequate insurance or savings may face difficult financial decisions. These unplanned expenses can disrupt budgets and lead to borrowing or asset liquidation to cover the bills. Managing them can be challenging, but there are ways to handle unplanned medical expenses effectively.
Different approaches to consider for handling medical expenses
Understanding different financial strategies can ease the burden of these unexpected costs. So, we’ve listed down some practical approaches below to help you evaluate your options:
1: Opt for a medical loan for emergencies that require larger funds
Medical loans provide quick financial relief for significant expenses like surgeries or specialised treatments. They typically come with flexible repayment options, allowing you to pay back the loan over time. Medical loans are approved quickly, often with minimal paperwork, so you can focus on getting the necessary care without worrying about immediate costs. Many lenders offer competitive interest rates specifically for medical purposes. This makes it a cost-effective option for emergencies.
2: Choose credit cards that provide quick medical financial assistance
Certain credit cards are specifically designed for medical emergencies. They offer features like emergency cash advances or low interest rates for healthcare expenses. These cards provide instant funds, allowing you to cover unexpected bills without delay. If your card has a healthcare benefits plan, it might even include discounts on medical services or complimentary insurance. Remember to use credit cards responsibly, paying off balances promptly to avoid interest charges, which can add up if not managed well.
3: Consider a personal for getting quicker access to funds
Personal loans offer a flexible way to manage medical expenses, covering everything from routine check-ups to hospital stays. They usually have fixed interest rates, which helps with budgeting. Plus, they’re unsecured, meaning you don’t need to put up collateral and approval can be swift, especially if you have a good credit score. With a personal loan, you get fast access to funds and repayments can often be tailored to fit your financial situation, making it easier to handle sudden expenses.
4: Building an emergency savings fund is a must
An emergency fund is a proactive measure to tackle unexpected medical expenses. Setting aside a portion of your income each month can create a substantial financial buffer over time. Ideally, aim to save enough to cover three to six months of expenses. This fund acts as a financial safety net, preventing you from needing loans or credit. Even small, consistent contributions can build resilience against unplanned medical costs. Therefore, it provides both peace of mind and a practical way to manage emergencies.
5: Maintain a budget to establish financial discipline
Budgeting ensures that you allocate resources for unforeseen medical costs without disrupting your daily finances. By tracking income and expenses, you can identify areas where you might save or adjust spending. Setting aside a specific amount for healthcare, even if it’s a small portion, creates a habit of financial preparedness. Maintaining a budget not only keeps you organised but also helps you avoid debt by ensuring you have funds available when unexpected expenses arise.
Get instant disbursal with personal loans from Unity Small Finance Bank
Unplanned medical expenses can quickly disrupt your finances, especially when they exceed your savings. In such situations, Unity Small Finance Bank offers personal loans with instant disbursal to help manage these costs without delay. With loan amounts up to ₹5 lakhs and flexible repayment terms, you can get a quick financial cushion. Check out the offer and apply online if you need a fast, hassle-free way to handle unexpected medical bills.
About Unity Small Finance Bank
Unity Small Finance Bank is committed to making banking simpler and more accessible for everyone. Our services include Savings Account, NRI account, Current Account, Fixed Deposits, and Personal Loans offering flexible tenures and attractive interest rates. We also offer financing options like MSME Loans and Microfinance to support businesses and underserved communities. Learn more about Unity Small Finance Bank here.
