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How to Prepare Yourself for a Medical Emergency in 2021?

COVID-19 has infected almost 11 million people in India, as of February 12, 2021. In the face of the pandemic, it has become evident that a medical emergency can strike at any time. Apart from the physical and emotional trauma, it can be huge pressure on your finances. So, here are some steps to take to prepare yourself for a medical emergency in 2021.

Start an Emergency Fund

  • Open a savings account only for the purpose of saving for a medical emergency. Opening a savings account online is very easy. Moreover, savings account generates interest, which can help grow your funds.
  • Choose a bank that offers the best interest rates on savings accounts.
  • Regularly deposit money in this account. You can plan your expenses and set aside a small amount monthly, as soon as you receive your salary or any other form of income you may have.
  • Refrain from withdrawing money or conducting transactions from this account for non-medical purposes.
  • Keep track of how your funds fluctuate. This will help you to prioritise replenishing funds if you need to make a withdrawal for any reason.
  • Savings accounts have much higher liquidity than other investments like fixed deposits or mutual funds. This means you can access the funds at any time and don’t need to borrow money or make an overdraft on your investment.

Weigh the Costs

  • Study your family’s medical history and consult a doctor. For example, if you have a family history of heart disease, consult your doctor regarding the steps to prevent it.
  • Make a list of the most common medical emergencies and reach out to a hospital to understand the estimated cost for each. This should give you a rough idea of how much you need to save in your emergency fund. Start eliminating unnecessary expenses so that you can achieve this target quickly before an emergency occurs.
  • Improve your health by eating a balanced diet, exercising regularly and getting enough sleep. Encourage your loved ones to make the necessary lifestyle changes.

Get Health Insurance

  • Health insurance is an excellent option to help you cover most of the costs in case of an emergency. This can be supplemented by your savings.
  • For a low premium each month, health insurance will pay most of your medical expenses.
  • Different health insurance plans cater to different types of emergencies, like accidents, heart disease, general health, etc. Therefore, it is important to consider your family history and your lifestyle before choosing an insurance plan.
  • You can also include your immediate family in your health insurance policy.

Consider Personal Loan as a Backup Option

  • Sometimes, even the best preparation is unable to meet the demands of the situation. In such a scenario, consider taking a personal loan.
  • Check the interest rate and loan tenure and read the loan document carefully before going ahead.

During a medical emergency, you would like to focus on getting better, rather than having to worry about arranging funds. So, take the necessary steps like opening a savings account that offers high interest, and be prepared for any contingencies.

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Insurance

How to renew bike insurance using bike insurance app?

Riding a bike is a truly underrated experience. The feeling of the wind on your face is a freeing experience. Moreover, it is also a practical vehicle. Using a bike to travel, means that you can weave through traffic while others have to be stuck until it clears.

However, for all its great qualities, riding a bike is very dangerous. Even after wearing protective gear, there is a chance that a bike accident can lead to grave injuries. Moreover, unlike a car, a bike is an open vehicle. This means that a single error in judgement while riding a bike can lead to major consequences for you and your two-wheeler. Hence, it is ideally recommended to drive safely. However, there is no harm in being as secure as you can at every step. Hence, to avoid the financial and emotional burden of having your bike damaged, you can get a bike insurance policy.

However, any good thing in life requires effort and care. This applies to bike insurance as well. Once you have bought a policy, you will have to make sure that it performs to the best of your needs.  This includes renewing it on time. However, being the lengthy process that it is, there is a chance that you may miss the due date of your bike insurance renewal.

Missing the renewal due date

A bike insurance is like a subscription. It needs to be renewed each year before a specific date. This renewal is done by paying the right amount of premium before the due date. However, if for some reason you fail to renew your policy before this date, the coverage mentioned in your policy is considered expired.

Once, this coverage is declared expired, you will be given a grace period by the insurance provider. While every insurance provider has a different operational policy, most insurers offer a break-in period of 90 days. During this period of time you can restore your coverage as it was by paying the premium and renewing your policy. Until you do so, you will not have any benefits of the policy to redeem. As a worst-case scenario, if you miss this opportunity as well, your coverage becomes null and void.

At this point, you lose coverage for own damages as well as third party liabilities. This firstly means that in the case of an accident you will be completely unprotected against the financial burden of repairs.  Secondly, you will have to cover for the legal and the financial liabilities for any harm you cause to a third-party or his/her property. The worst part about losing your bike insurance policy is that you cannot legally ride your bike on the roads. If you are caught riding without a valid motor insurance policy, you will have to pay a fine.

Renewal of policy

The purpose of insurance is to make things better and simpler. In that spirit, many insurance providers have launched apps that can offer you a whole host of benefits. However, the best these apps do is give your better control over your policy and everything related to it. This includes policy renewal.

Firstly, you can keep track of the due date of your policy in the app. Knowing what the due date is you can plan your renewal well in advance. This includes taking a look into how much coverage you need, how much you have, and what changes are necessary to bridge the gap. This time can also be used to look into ways that you can lower your premium.

Once the preparation is over, the first thing you have to do is log into the app. After logging in, you have to select the policy renewal option. At this point, the app will require your policy details. Adding the policy details will take you to the step where you can change the coverage of your policy to your liking. With the change of coverage, you will also see a change in the premium. The last step is to make the premium payment. Select a payment mode and complete the payment. Once done, your policy will be instantly renewed and you will receive the new policy documents through email or other digital means.

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