What You Can Do to Manage Sudden Medical Expenses
Key Takeaways:
- 1. Understand how expensive hospital bills can be, even for simple procedures
- 2. As you age and when health conditions set in, insurance premiums are more likely to rise.
- 3. There are steps you can take to understand and better manage medical expenses.
With age and the onset of a health condition, insurance premiums and medical bills are likely to become more expensive1. The collective effect of global inflation, longer life expectancies, prevalence of chronic diseases, and the growing demand for healthcare services place an upward pressure on the price of healthcare services and drug prices.
Even if one is insured, the presence of a protection gap2 may mean forking out-of-pocket for hefty medical fees. One’s finances may take an even bigger hit if emergency funds were not prepared or there are insufficient savings to dip into.
Under such circumstances, what can one do to better manage their personal finances to focus on recovery? This article outlines some strategies to manage sudden medical expenses.
What should you do when get a bill for unexpected medical expenses?
- 1. Check your medical bill in its entirety to confirm whether it is accurate. Mistakes can and do happen, so be sure to ask questions and get explanations for charges that you are not sure about.
- 2. Evaluate your insurance policy documentation to see what you are covered for and what coverage limits apply. Speak to your insurance specialist for further clarity.
- 3. Review and update your budget if necessary and determine how much you can afford to pay off immediately and how much you can afford in terms of monthly medical bill repayments.
- 4. Contact the hospital/medical provider as well as government agencies to see if they provide any financial assistance for medical bills or a payment arrangement that fits your needs and budget.
Should you consider taking a personal loan for medical expenses?
Despite one’s best efforts, it might be the case that alternate financing solutions are needed to afford sudden medical expenses. In addition to the strategies outlined above, a personal loan may be an option to consider.
The additional cashflow can help manage immediate medical expenses without relegating other responsibilities like paying for your child’s tuition or utilities.
Here are some benefits to taking out a personal loan to pay for medical expenses:
- Fast access to funds: Depending on your bank, you can access funds relatively quickly.
- Easy approval: If you have a good credit score and stable income, you should be able to get approval for a personal loan quicky.
- Flexible repayment period: Many banks will give you the flexibility to make repayments ranging from 12 to 60 months, making repayment manageable.
- Maintain your financial goals: You do not need to draw funds from your savings or sell equities from your investment portfolio to cover your bills.
- No collateral is required: As an unsecured loan, you do not need to pledge any of your possessions to borrow money.
If you plan on taking out a personal loan, be sure to choose one that gives you the best interest rate possible with the right loan tenure.
Also, check to see if there are any fees associated with taking out a loan. This will help you select a personal loan with terms that best suit your needs.
Get the cash you need when you need it most
With Citi’s Quick Cash, you can get the funds you need from your Citi Credit Card or Citibank Ready Credit Account in as little as 60 seconds. Instant disbursement is available only for Citi Deposit Accounts displayed during the funds disbursement option.
You can make a request today via the Citi Mobile® App and get a repayment plan of up to 60 months with no hidden fees and an attractive interest rate.
Visit Citi’s Quick Cash Loan page for more information.
References:
- 1. Jasminski, R., Wehner, D., Nijenhuis, W., & Fiorica, J. (n.d.). Investing in health care - Outlook 2023: Citi Private Bank. Investing in health care - Outlook 2023 | Citi Private Bank. Retrieved March 28, 2023, from https://www.privatebank.citibank.com/outlook/future-of-healthcare
- 2. A protection gap can be defined as the difference between the insurance coverage you have and the insurance coverage you need for you and your dependents to maintain a similar standard of living in the event of an unexpected mishap.
Disclaimer:
This article is for general information only and is not intended to be a forecast of future events nor a guarantee of future results and should not be relied upon as financial advice. All views and opinions are as of the date hereof, and are subject to change based on market and other conditions without notice. The article has no regard to the specific objectives, financial situation and particular needs of any specific person. It is neither an offer nor a solicitation to purchase, nor endorsement or recommendation of any products or services mentioned therein, and the products or services mentioned may or may not be offered by Citibank Singapore Limited, its related entities and their respective directors, agents and employees (together "Citigroup").
This article and its contents do not constitute the distribution of any information or the making of any offer or solicitation by anyone in any jurisdiction in which such distribution, offer or solicitation is not authorised or to any person to whom it is unlawful to distribute such information or make any offer or solicitation.
Citigroup is under no duty to update this article and shall not be liable for any complaint, suit, action, claim, expense, loss or damages directly or indirectly arising out of or in connection with any person’s reliance on, or acting upon, or use of, any contents on this article. The article is subject to amendment without notice. Investment Products are (i) not insured by any government agency; (ii) not a deposit or other obligation of, or guaranteed by, the depository institution; and (iii) subject to investment risks, including possible loss of the principal amount invested. The information contained herein is not intended to be tax or legal advice, or an exhaustive discussion of the strategies or concepts mentioned herein. Please seek advice from your tax, legal or financial adviser as appropriate about the contents discussed herein or before investing in any investment products. Should you choose not to seek such advice, you should carefully consider the risks associated with any investments and make a determination based upon your own particular circumstances and assess whether such investment product is suitable for you.
