Unfortunately, the COVID-19 pandemic and subsequent lockdown has affected millions of people worldwide. Perhaps it isn’t surprising then that so many are now focusing not only on their own well-being, but their plans in place to protect their health in the short and long term. As such, it’s imperative for everyone –– even those who currently have quality insurance coverage –– to start and grow a medical emergency fund. We’ll explain why here:
Insurance Doesn’t Cover Everything
It’s safe to say that a lot of people don’t have an intimate understanding of their insurance policy. After all, if you’re young and relatively healthy, you may not need to consider it all that often. However, it’s worth nothing now that even good insurance plans don’t cover every type of medical problem or treatment. For instance, individuals suffering from erectile dysfunction might not be able to pursue innovative treatment methods like stem cells for ED because they’re not covered by their insurance provider.
What’s more, sometimes gaps in insurance coverage can be quite significant. It’s possible that some insurance plans might not cover seemingly essential needs like vision-correction surgery.
Lastly, relatively few insurance packages address preventative treatments or screenings. So if you need to get tested for a condition like an STD, you might have to pay for it out of pocket.
Insurance is Tied to Employment
If you’re like the majority of people in America, then you get your insurance through your employer. This offers a number of benefits –– the main one being that insurance packages through employers are often much more affordable than the alternative. But as the recent economic crisis has exposed, it’s possible to lose your insurance coverage quickly if you lose your job. Indeed, even if you like your job and aren’t concerned about losing it, it’s still vital to have some extra funds tucked away in preparation for unforeseen trouble in your industry or company.
High Medical Costs
The sad reality is that many people struggle paying their medical bills, even when they have insurance. Certain drugs, treatments, and procedures simply cost an enormous amount of money. So while insurance coverage will soften that financial blow somewhat, having a medical emergency fund on hand will provide you with peace of mind when you need it most.
Of course, the hope with building an emergency fund is that you never have to use it –– unlikely though that is. Still, whether you need extra medical funds in five years or fifty, you’ll be glad you started saving up now. Start planning for your future and give yourself peace of mind today!