The financial risks of critical illness: How to be prepared

You can’t avoid being sick, but you can definitely prepare for it. With everything that is happening now globally in light of the COVID-19 pandemic, there is no better time to secure a health insurance for you and your family. A readily prepared emergency fund is also critically necessary but you should not depend on it solely given the fact that unforeseen events can happen in the future and it can easily drain your hard earned savings.

As of 2020 according to Statista, the average monthly salary in the Philippines was approximately 45 thousand Philippine pesos. Considering the varying lifestyle of a Filipino, a great amount of their budget goes to monthly bills for rental, car loan, electricity, gas, water, internet and food. A little of that portion goes to savings and almost none of it goes to insurance or investments. But due to the COVID-19 outbreak, about 48.22 million Filipinos are now covered by microinsurance policies as of end-March for the year of 2020, according to the Insurance Commission. That is a 28.89 percent increase from the 37.41 million recorded from 2019. Many Filipinos are recognizing the risks from the lack of security and preparation from diseases, accidents, sudden casualties, and hospitalization costs.

Unfortunately, Filipinos are also at high risk for critical illnesses such as heart disease, cancer, and stroke which are the top three causes of death in the country in 2020 according to the Philippine Statistics Authority. Heart diseases were the leading cause of death with 99.7 thousand cases or 17.3 percent of the total deaths in the country. This was an increase of about 2.3 percent from the 97.5 thousand deaths or 15.7 percent of the total deaths in 2019. On the other hand, cancer came in second with 62.3 thousand deaths or 10.8 percent. Stroke was the third leading cause which accounted for 59.7 thousand deaths or 10.4 percent of the total.

Undoubtedly, being diagnosed with critical illness can be frightening. It can affect not only you but also your family – mentally, physically, emotionally and financially. You can be spending around thousands to millions depending on your case. Healthcare costs can include confinement, diagnostic procedures, professional fees, treatments, and medicines. But it doesn’t stop there, you also need to consider the non-healthcare costs that will help with your comfort and after treatment procedures like post-therapy. It can be a lot for your emergency savings, especially if you are the one diagnosed.

How can you prepare yourself financially?

1. Get a health insuranceThis will help you have peace of mind that you will be financially protected from health related issues that may come on the way so you can just focus on your recovery and well-being.You can also be assured that no financial burden will be passed on to your family in case you get diagnosed with one of these illnesses.
2. Secure an emergency fundNo matter what situation in life you have right now, securing an emergency fund is necessary and can help you a lot in the long run. Always remember that the only person who can help you the most is yourself so consider this as one of the most important allotments in your earnings. Your future self will thank you for this.
3. Practice a healthy lifestyleIt is essential to eat a healthy diet. Include plenty of fruits, vegetables and whole grains in your meals while avoiding refined sugars, saturated fats and sodium, to help reduce your risk for cancer and heart disease.Make it a habit to exercise regularly. Any amount of physical activity can help you gain health benefits, but including at least 30 minutes of physical activity in your daily routine will give you the most substantial health benefits.

   Get enough sleep. Adults need at least seven to nine hours of sleep per night.

   And avoid using tobacco. Smoking and tobacco use increases your risk for cancer, heart attack, stroke, Alzheimer’s disease and dementia.

Look ahead. Be assured.

Start taking control of your finances and work on your financial plan now. There is no way of knowing what lies ahead so taking an extra step of security is always a good idea. For a better tomorrow for you and your loved ones, consult us to inquire about our available products and services.