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The demands of everyday life will cause you to focus and spend on things that matter in the present.
For most people, allocating money for food, rent, long-term investments, and other personal needs may become the main priority while saving for emergencies, retirement, and potential hospitalizations from critical illnesses take a back seat.
Unfortunately, managing your finances this way will prove to be detrimental in the long run.
The Philippine Statistics Authority (PSA) reported that the country’s top three leading causes of death in 2022 were heart disease, cancer and cerebrovascular disease.
These diseases can affect anyone. It’s important to prioritize your physical well-being and invest in a health protection plan.
It isn’t pleasant to think about critical illness or prepare for it, but this proactive step can give you peace of mind. If you have any serious illness, your health insurance and other emergency funds can pay for hospitalization, therapy and rehabilitation, medicines and other treatments. You can focus on getting well and protect your loved ones from financial and emotional strain.
In this article, we look at the most common critical illnesses, the cost of health care in the Philippines, and how you can financially prepare for medical emergencies.
A critical illness is a health condition that impairs your body’s functions and causes life-altering changes. Lack of medical treatment can greatly impair your quality of life, capacity to provide for your family, and longevity.
According to the Philippine Statistics Authority (PSA), the country’s top five causes of death in 2022 are:
Medical costs can vary according to the severity of the disease and the recommended treatment. Here are some general estimates.
How do most Filipinos find the money for these medical expenses?
According to PIDS, 85.4% of Filipinos rely on Philippine Health Insurance Corporation (PhilHealth), which subsidizes part of the hospital bills, tests and doctor’s fees.
Despite this, their out-of-pocket expenses remain high. Thus, they resort to other ways to pay for healthcare: pagtitiis (enduring symptoms), pangugutang (borrowing money, and pagmamakaawa (soliciting help from politicians or NGOs).
You can protect yourself from critical illnesses and lead a longer and better life. First, you can lower your risk for the diseases through healthy habits. Second, you can prepare for medical expenses, so that you will always be able to get the best possible care and treatment.Here are five ways you can financially prepare for critical illnesses or other serious health problems.
When hospital bills and other related medical expenses arrive, your health insurance and HMO plan can play a big part in easing your financial load. Thanks to the number of providers and plans readily available in the market, there are many health insurance plans in the Philippines that can provide both comprehensive coverage and financial flexibility.
For example, BPI-AIA's Critical Care 100 provides lifetime coverage for up to 100 critical illnesses, including cancer and diseases related to the heart, nervous system and organ function.
Investing in this policy will give you peace of mind so you can enjoy life without worrying about hefty medical bills. If you are diagnosed with a critical illness, you receive a cash benefit that you can use for treatment and other expenses. You can also add insurance riders that will give additional cash benefits for gender-specific cancers or recovery benefits that you can use to support your family while you rest at home.
Critical Care 100 supports you during those “critical times” so you can focus on what’s important: regaining your health and strength and being with your family.
Allocate part of your monthly income for unexpected emergencies and illnesses. This money can later be used to pay for medicines and miscellaneous fees or cover your household expenses while you are undergoing treatment.
If you have emergency funds, you don’t have to rely heavily on credit cards or other lending options during a health emergency. You avoid high interest rates and other complications that can affect your long-term financial stability.
Ideally, your emergency fund should cover at least 3 to 6 months' worth of your monthly living expenses. Evaluate your household expenses and aim to save 20% of your income. Aside from looking for ways to reduce regular costs, add any windfall like bonuses or commissions to this fund.
There are many small things you can do to maintain your overall health.
Try to get at least 30 minutes of physical activity a day. If you hate working out or don’t have time to go to the gym, consider walking or hiking, or playing a sport with your family and friends. Aside from this, eating a balanced diet and getting high-quality sleep can also lower your risk for any disease.
And don’t forget your mental health!
Don’t get so caught up in work and other personal demands that you start to neglect your health. Chronic stress can cause you to develop negative coping mechanisms such as smoking and stress-eating. Manage your stress, especially during difficult periods, by journaling, reading a book, or talking to a close friend.
Though you should try to avoid unnecessary debt, it can be reassuring to know that you can take a loan to meet an urgent financial need or important goal.
Maintaining a good credit score and settling your current debts as early as possible will allow you to acquire a credit loan whenever you need it.
If you have an existing health plan – whether it’s from your company’s employee benefits or HMO card, or a government agency like PhilHealth – find out if it covers critical illnesses, and its specific benefits and terms and conditions.
For example, what is the maximum amount that you can receive? What financial protection does it provide in case of disability or death?
This can help you assess if you need additional health insurance coverage, given your personal needs and risks.
The adage “health is wealth” has some practical truth. Critical illnesses and other life-threatening conditions have a huge impact on your finances and your family’s future.
Consult with a Bancassurance Sales Executive on how to get a critical illness life insurance plan or other plans that can help cover medical costs. You can visit any of our 710 BPI branches or call our customer care hotline at (02) 8528-5501.
References
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