The past years have greatly stressed the importance of paying attention to your health and making it among your priorities. With the rising cost of medical expenses, building your health emergency fund is now a necessity to be spared from financial distress.
Even before the pandemic, health is already among the most important aspects that require adequate and prompt attention. In the Philippines, COVID-19 is just one of the major health problems. There are other diseases that have also taken a toll on Filipino families.
The pandemic emphasized the urgency to secure funds in case of emergencies and/or sickness. The cost of hospitalization and other medical expenses remain high. Whether you're poor or rich, your savings can drain out if you fail to set aside an emergency fund. As such, safety nets like health insurance are important. There is no better time to learn how to secure an emergency fund than now.
6 tips to build your emergency fund
1. Determine the amount you can set aside.
Evaluate how much money you are making and determine the amount you can set aside for your health emergency fund. Be diligent in building your fund until it reaches the amount that is equivalent to at least six months worth of salary.
2. Pay your debts.
It would be ideal if you can start ‘financially clean’ when building your emergency fund. This will help you set aside money without disregarding other financial obligations. However, life is not always perfect, so it’s best to act with urgency to fix your debt situation. Make sure that a part of your income will also be used to pay your debts regularly. Aside from the fact that it’s the right thing to do, it will also allow you to focus on building your emergency fund steadily.
3. Manage your extra income.
On occasions when you are able to earn more than your usual income per month, such as when receiving bonuses or getting a raise, maintain an attitude that prioritizes savings over splurging. Earning more than usual is an opportunity to increase your health emergency fund.
4. Don't stop building your health emergency fund.
Once you have already reached the desired amount for your emergency fund, don’t stop funding. The more money you have, the greater financial security and peace of mind you’ll experience. You also have to keep in mind that medical expenses, hospital bills, and the cost of medicines grow over time. You wouldn’t want to end up not having enough to finance your needs.
Once an emergency strikes and you’ve used up a portion of your health emergency fund, rebuild your fund as soon as possible. Replenish it the same way when you were just starting to save. Uncertainties come in different forms and you shouldn’t be caught unprepared to handle whatever crisis comes your way.
6. Explore health insurance plans.
There are insurance plans that also come with health protection. These are the financial products that you should also explore when building your health emergency fund.
Sun Life's health protection plans will not just allow you to live your life to the fullest but also protect your health and wealth. You can choose from a selection of health care insurance options that can prepare you for life's emergencies. Best of all, you can find a Sun Life health care insurance plan that is suited for every member of the family.
● SUN Fit and Well is a New Generation Wellness plan suited for young people. It is a life and health insurance plan that comes with critical illness and life insurance benefits up to age 100 plus disease prevention programs as a bonus.
● SUN First Aid is a budget-friendly health protection plan to help you become financially prepared in case of unforeseen events such as untimely passing, accidents, and disability. It also offers cash benefits to help you handle costly medical bills due to hospital confinement or surgery.
● SUN Cancer Care is a specialized health protection plan that would be your dependable partner in battling the big C when it strikes. It will help you to be financially prepared and live a healthier life as it provides benefits from prevention to diagnosis and rehabilitation.
● SUN Senior Care is designed for people who are on their way to retirement and those who want to ensure a comfortable life during their golden years and secure their loved one's future at the same time.
● Sun ICU Protect is a severity-based health insurance plan. It provides life insurance protection and health protection boosters to help you live a healthier life and ensure that your financial health is well-taken care of even when life-threatening conditions happen.
Why health insurance is crucial in building your emergency fund
Health-related emergencies are common. Health issues that affect different age groups also remain on the rise. In addition to that is the expensive cost of hospitalization, medicines, and treatment. These are just among the major reasons why health insurance should not be neglected when building your emergency fund. Without a health plan, your savings, as well as your emergency funds, would be affected when health problems unexpectedly get in the way.
The importance of building a healthy emergency fund should not be underestimated. It will serve as the financial buffer that will keep you from breaking down when things don’t work the way you expected. It will provide the financial back up you need to unload some of your burdens when emergencies happen.
Do you need a health emergency fund?
No one is excused from life’s uncertainties. So just as many people have already embraced the importance of a health emergency fund, you should start building one for yourself, too.
No matter what your status is now, whether you are supporting a family or living solo, or whether you are ill or in the pink of health, ensure your financial security and have peace of mind.
ALSO READ: Step 3 Preparing for Emergencies
It is your responsibility to ensure financial security when uncertainties arise. Health emergencies happen either as a result of an existing illness, accidents, or even aging. With a health emergency fund, you can get through a rough patch of your life and focus on recovery knowing that you are financially capable to overcome life’s trials.
Find a Partner for Life that can also be a Partner in Health. Check out Sun Life’s health insurance products that can help secure the necessary funds to put your health and wealth in order. You can also talk to one of our health insurance advisors today.