The old saying “fail to plan, plan to fail” holds entirely true for your personal finances. Preparing for unexpected medical emergencies is crucial, as healthcare crises can strike without warning. While no one can avoid life’s unpredictable challenges, securing the right health insurance plan allows you to navigate medical emergencies with financial security and peace of mind.
You need to plan for the worst to make yourself as safe as possible and protect your family effectively. If you act with grace when under pressure, you will face life with a renewed sense of purpose and security. In the coming series in this column, we shall look at various financial challenges life may throw your way and how to plan for them so that you can come out unscathed. Let’s get started with a health care strategy.
Mimicking the chaos of a health crisis only makes you desperate and fearful, reducing your chances of a smooth recovery. Furthermore, facing an emergency without a long-term financial plan strips away your hard-earned control. Instead of stability, you are left burdened by discomfort, fear, and indecision.
In times of illness or bereavement, families naturally lean on women as primary caregivers. Recognised for their dependability, women routinely guide households through domestic emergencies. They do everything from managing hospital visits and comforting the sick to handling funeral arrangements and researching new treatment protocols.
For this reason, women must lead the charge in personal preparedness, spanning healthcare, insurance, divorce, and personal protection. They should also encourage the men in their lives (spouses, family, friends, and colleagues) to take health issues seriously.
Have a health care strategy…
One of the biggest risks to building wealth is the rising cost of health care, which can wipe out your wealth if you are not well cushioned.
Since no one is immune to illness, a dependable healthcare plan must be part of your wealth-building strategy. Whether caring for ageing parents or a sudden chronic illness, a clear strategy ensures you navigate the crisis successfully.
Some people think they can do without health insurance because they hardly get sick, or settle for other plans such as using their savings if a health crisis strikes, but this is a big financial mistake. The fact that you don’t get sick does not mean you will not get sick in the future. A chronic disease can wipe out all your savings in no time, especially if it strikes when you or your family member are young.
If you have a chronically ill child, it will mean lifelong support and without adequate health insurance, this can be a nightmare. Disability insurance is just as important as general health cover because if you can’t work, you must ensure that you will have an income. If you are involved in an accident that leaves you disabled and unable to work, disability cover kicks in to help you pay bills and ensure that your life does not drastically change from what it was before the accident.
Health insurance facts…
The foundation of any healthcare strategy is insurance, and your priority must be yourself. Just like airline safety instructions, put your oxygen mask on before helping others. You cannot care for your loved ones if your own health or peace of mind is compromised. While health insurance can be costly, budget constraints are not an excuse to leave yourself completely unprotected.
Your strategy…
The most important step is choosing a cover that matches your income. A wide range of options exist in the market. There is the Social Health Insurance Fund (SHIF), private underwriters and comprehensive medical providers like AAR and Jubilee.
Most employers also provide basic health cover, which you will need to study to see if it meets your needs and those of your family members. If it is not a comprehensive cover, you can supplement it to get better coverage.
Medical emergencies strike without warning, and the financial toll can be devastating. Without proper health insurance, a single critical diagnosis can completely wipe out your life savings in less than a year.
If you are self-employed, health-care coverage can be prohibitively expensive. The best strategy is to join a group policy rather than purchase an individual cover. Some health care insurance providers have reasonably priced group covers, and you could discuss with them if you can join an existing group or form your own with your friends, family members, or a group of like-minded people.
For any insurance cover you sign for, ensure you read the fine print on hospital stays and coverage limits. You should get coverage that allows you to get regular health check-ups, mammograms and other preventive tests. Remember, prevention is always better than cure.
If you don’t have, or can’t afford health insurance cover, ensure you at least register yourself and family members with NHIF and also open a special savings account to cater for life’s crises such as ill health.
Fund this emergency medical account regularly and protect it from non-medical expenses. Over time, these consistent savings will compound, eventually enabling you to afford premium private health coverage. Start saving the moment you earn a regular income—no matter how small the amount.
Disability insurance…
Many people think that the workers’ compensation cover provided by most employers under the law will cover them if they should ever become disabled through an accident or illness. This is an inaccurate assumption. Workers’ compensation assists you only if you are injured on the job, but most accidents are not work-related.
If you qualify for workers’ compensation, also know that the payout is not that large. Disability insurance is one cover we strongly advise you should not live without. Make sure your policy is non-cancellable and provides guaranteed eligibility without medical examination. If you are a business owner, you can buy a policy for yourself and your employees.
The price you pay will depend on your age, health, occupation and the types of disabilities you want to protect against, as well as the percentage of the income you want to replace.
Making claims…
When filing insurance claims, always follow the policy’s exact guidelines. Navigating paperwork while caring for a sick child, parent, or spouse can be overwhelming, so don’t hesitate to seek help. Insurance companies routinely deny claims over minor rule violations. Violations such as failing to seek pre-authorisation or neglecting to report a hospital admission on time.
It can be exhausting to appeal denied claims or investigate charges for expenses not covered by your insurance company. To avoid getting into such messes, ensure you fully understand your insurance policy, what is covered and what is not, how to make a claim or seek treatment, and the restrictions of the policy.
For example, some covers only allow treatment in listed hospitals and clinics; others limit you from seeing personal doctors, while others only allow outpatient treatments within their health facilities. Make sure you are comfortable with these restrictions before taking up the cover. Also, ensure you check what the policy says about renewal. Some give a grace period within which to renew, while others expect payment immediately the policy falls due.
The other sure method to help you get the best medical cover and ensure your interests are taken care of is using a broker. Brokers will look for a policy that meets your needs and is within your budget.
The beauty of using a broker is that he is knowledgeable about insurance and will compare different providers before recommending one to you. He will also help you understand the finer details of the cover and all the benefits.
You could also use your broker to make claims on your behalf, especially when you are so involved with the patient that you have no time for details, or are the one who is sick and don’t have anyone to help you make claims or follow them up.
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