Life Insurance: Building an Emergency Fund

Along our life’s journey, there is a possibility of any of us being admitted into hospital for various health issues. With today’s improving medical technology, hospitalization costs for medical treatment can be expensive. The medical bill could be beyond the means of an average-income earner. It is therefore wise to set aside a little of your savings to purchase a hospitalization insurance plan which will serve as an emergency fund.

Hospitalization insurance
Hospitalization insurance plans would normally cover medical expenses incurred as an in-patient. Examples of such expenses are room and board, intensive care unit, surgical fees, operation theatre, specialist’s consultation, post-hospitalization and follow-up treatment cost.

Possible consequences of not obtaining hospitalization insurance
You may be financially drained in order to pay for the medical expenses. Moreover, your dependents may face financial difficulty due to the indebtedness caused by the hospitalization. This may lead to a compromise in the quality of life for your family as a whole.

Optimum timing for purchasing hospitalization insurance
Start as early as possible. It is to your advantage especially when you are still healthy as compared to one with health problems, who may have to pay added premiums due to higher health risks.

Once purchased, most hospitalization plans would usually provide coverage to age 70, hence protecting you in times when you need it most.

Continuous protection
It is important to look for a hospitalization plan that renews your coverage without evidence of insurability and provides continuous protection up to the expiry age in spite of your history of hospitalization, if any, since policy inception. This feature would certainly be valuable to policyholders who have had a relapse of the same condition suffered, for example, 10 years ago. One example of such a condition would be cancer whereby treatment costs incurred are high and therefore insurance protection is most critical.

Find out more on the product and services available on hospitalization coverage.