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How should women plan their finances to deal with a medical emergency?

Summary:- It becomes difficult for everyone, especially women, if they haven’t done proper financial planning to deal with a medical emergency. Various insurance and contingency funds can help in these tough times. In order to properly manage money, proper financial planning is necessary. And in this new age of working women, financial planning is equally important for men and women. The most important part of financial planning is to plan for medical emergencies. Women are the primary care-taker of family members, so proper planning for dealing with a medical emergency is necessary. In this article, we will understand how women can do financial planning for medical emergencies.


Health status of women in India:

India may be progressing well, but we are still far behind in health and hygiene. Specifically, women have to suffer a lot due to this. Women mainly face more health issues than men due to stress, poor nutrition, changing lifestyles, inability to access basic healthcare facilities, less knowledge about maternal health, etc. Breast cancer and cervical cancer cases in Indian women have been on the rise. Poor nutrition intake, obesity, early marriage, etc., are some of the main causes of this. Due to increases in smoking and drinking culture and more intake of junk food, women are also prone to heart diseases.


Why should women plan for their medical emergencies?
Gone are the days when women are just taking the responsibility of managing household chores. Women are now working in various sectors like banking, medicine, IT, marketing, etc. She is contributing her income to run the household expenses. In addition to working, they also need to take care of their family and kids. In certain households, women are single parents taking care of kids and families. Before taking care of their family, women shall care for themselves and their own well-being. She needs to care for medical emergencies because regular savings won’t suffice in these tough times. Medical costs are increasing, and hospitalisation of a few days can cost lakhs. In addition, if surgery is involved, the expenses are very high. In order to deal with this, all women shall be prepared well for a medical emergency.
Top 7 tips to help women deal with medical emergencies: Here are some tips to help women to deal with medical emergencies
Avail high coverage health insurance early in life:

The first and foremost step in financial planning for a medical emergency is taking a health insurance plan. Health Insurance covers all medical expenses like hospitalisation, ambulance, surgery, etc., in case of a medical emergency. A working woman may get a health insurance plan from the company where she works. But this insurance is generally group insurance and could have limited coverage. So to reduce the financial burden in case of a medical emergency, you must avail of health insurance.
You can also take a family floater health plan to protect your family along with you. This plan provides full family health coverage at lower costs. The insurance coverage generally starts from ₹2 lakhs.
But you shall take care to take adequate cover to help you cope with all medical expenses during an emergency. The premium paid for a health insurance policy is eligible for tax deduction under section 80D of the Income Tax Act, 1961.


Avail of term plan for your family’s security:

Just like a health insurance plan is necessary to deal with the medical emergencies of a family, a term plan is considered to be Plan B. It is the simplest form of life insurance wherein your family will receive the lump sum death benefit amount from the insurance company in case you happen to die within the policy tenure. However, in case you survive till maturity, nothing is usually payable unless you have opted for a term plan with a return of premium option. The importance of availing an adequate coverage for your term insurance plan has gained tremendous impetus, especially after the pandemic.
Term plans are the cheapest form of insurance to avail of high coverage at a lower cost. Also, female lives cost less with a lower mortality rate, and hence a premium discount is provided to women opting for a life insurance plan for themselves. The insurance premium paid for Term Plan is also eligible for deduction under Section 80C of the Income Tax Act, 1961.


Take a personal accident insurance plan:
Road accidents have become very common these days. You may be a safe driver, but then also you may be prone to an accident due to someone else’s fault. Personal accident insurance provides financial protection in case of death due to an accident. Your family will receive the sum assured in case of your death due to an accident. In addition to this, it also covers the disability (permanent, temporary, and partial) caused due to accidents. Personal accident insurance is a must for a woman who travels to the office by driving her own vehicle.
Avail critical illness insurance:

Just like other insurance plans, critical illness insurance is also necessary for women to deal with medical uncertainties. There are some women-specific critical illnesses, such as breast cancer, cervical cancer, fallopian tube cancer, etc. which need to be checked and treated on time so that it doesn’t become life-threatening other than regular critical illnesses such as heart attack, cancer, kidney failure, paralysis, stroke, head trauma, etc. The treatment of such diseases could be very expensive. This is why opting for comprehensive critical illness insurance is essential.
Create a contingency fund:

You may have taken all kinds of insurance to deal with medical uncertainty, but you shall never miss out on a contingency fund. This is a fund created for emergency needs. Health insurance may not include all your medical expenses. You can keep this fund in the form of a fixed deposit or liquid mutual fund so that it is easily accessible in times of emergency.

About 3 to 6 months of your monthly expenses should be parked as your contingency fund to meet unforeseen expenses.

Keep all documents in a safe place and create a master excel sheet:

All your financial documents shall be kept in one safe place in your home. You shall ensure that your close family members shall know about this. In the time of emergency, it may not be possible for you to come home and search for these documents. If your family members are aware of this, then it becomes easy for them to get access to such documents.


Also, it is a prudent idea to create a master excel sheet with all relevant data, but password protected and share this information with your spouse or other family members. This sheet should have all your details, including bank account numbers, investments, insurance, etc., and internet banking IDs. But remember to keep this document heavily secured with a password which only your trusted family member should be aware of and no one else. In times of emergency, you may not be able to access this sheet. But your family member can access this information and use it if the need arises.


Conclusion


Women are superheroes without a cape, but it is prudent to keep your better halves informed about all your whereabouts, especially the financial aspects of the same, so that they can support you in times of medical emergencies. This is where Financial Planning comes in handy. You can make these small changes to ensure your life is as smooth as it has been forever!

Please remember that insurance should be your priority and should never be ignored or delayed. Various types of insurance, like Health Insurance, Term plans, Critical Illness Insurance, etc., need to be included by you in your financial planning. Also, financial planning is a family affair, so involving your spouse, parent, etc. and keeping them aware of the entire situation is a good idea!

Disclaimer: This article is for illustrative purposes only. For further details, please refer to the policy wordings and prospectus before concluding the sales.

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