- From where do I get funds for medical emergencies?
- See this post below and know the sources by which you can arrange money for medical treatment
A sudden medical emergency can hit you anytime, so it is better if you are prepared for it. There are several health insurance available for you to handle financial situations during a medical emergency. Like an open-heart surgery can cost you about INR 10 lakh and it is not easy for most to have such funds if they are not covered under a health insurance policy. Then what options are left for you? You can liquidate your investments or borrow a loan. Read the post and know about the sources by which you can get money to deal with a medical emergency.
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Health Insurance Policy
If you have health insurance, it becomes easy for you to manage the high expenses of medical treatment. You can claim insurance either by reimbursement or cashless process.
Cashless Claim Process of Health Insurance
Just provide your insurance details to the network hospital in order to use the facilities. A network hospital is a healthcare facility with whom the insurer is tied up for medical treatment. However, you must check what is covered and what is not in your insurance plan. Submit an e-card issued by the insurance company. This process is a cashless settlement where you don’t have to pay from your end provided the treatment is carried out in the network hospital. You can check the list of network hospitals on the health insurance manual provided to you or on the official website of the insurance company.
Claim via Reimbursement Process
If you go to a hospital that doesn’t come under the list of network hospitals, you need to afford the hospitalization cost by yourself. The amount can be claimed later when you are discharged from the hospital. But for the smooth reimbursement, you need to keep the bills, pharmacy proof, etc.. Because the provider asks for the proof and verifies the details to confirm before settling the insurance claim amount.
The documents you require for the reimbursement are as follows.
- A duly filled and signed claim form
- Investigation report ( if it was an accident such as an FIR report )
- Original bills, receipts, memo, etc.
- Medical certificate of your case file and other documentation signed by the doctor.
- Proof of medicine purchases from external pharmacies.
- Discharge card and clearance documents from the hospital
- After the documents are verified and processed, the claim is completed and the entire amount is credited to your account.
What to do If it is an Emergency?
You can contact the insurance company and find your nearest hospital with the cashless facility. When you reach the hospital, just fill up a form and submit. Bills come with some terms and conditions, so you need to take care of the same. It is always better for you to buy a health insurance plan and keep your close ones informed about its details like policy number, policy coverage and customer care number.
Employee Provident Fund Organisation (EPFO)
You can withdraw funds for your medical emergency from your EPF account if you are a member. Here are the steps you need to follow to claim the funds.
- Login to the EPFO portal using your UAN number and password.
- Go to ‘online services’ and select the ‘claim’ section.
- Verify the bank account number.
- Upload a scanned copy of a cheque or the passbook.
- Select ‘Medical Treatment’ as a reason for taking an advance
- Then an Aadhaar-based OTP is generated
- Once the fund claim is processed, the request will be forwarded to the employer for approval
The maximum withdrawal is, however, capped to 6 months’ basic salary and dearness allowance or employee share with interest, whichever is less
There’s also a personal loan that you can get quickly for medical treatment. Yes, a personal loan doesn’t require any collateral and you can get funds based on your income and repayment history. What is the eligibility for a personal loan? The eligibility criteria, which varies from one lender to another, will be very much like what’s shown below.
- You should be salaried or self-employed
- Age is between 21 to 60 years
- Have a minimum work experience of 2 years
- A credit score of 750 or above
- Monthly income of INR 15,000 or above (vary based on your lender)
Top lenders for a personal loan
|Bank/NBFC||Maximum Loan Amount (INR)||Interest Rate (per annum)|
|State Bank of India (SBI)||20 lakh||9.60% - 13.60%|
|HDFC Bank||Depend on income and credit score||10.75% - 21.30%|
|Bajaj Finserv||25 lakh||10.99% - 16.00%|
|ICICI Bank||40 lakh||10.75% - 18.49%|
|Axis Bank||15 lakh||12.00% - 24.00%|
|Kotak Mahindra Bank||20 lakh||10.75% - 17.99%|
|YES BANK||40 lakh||10.45% Onwards|
Note – The disbursal amount will be decided by the lender in a way that you can repay on time
Loan Against Fixed Deposit
You can borrow funds for a medical emergency using your fixed deposit savings. Usually, the bank provides up to 90% of your FD value as a loan. And the interest rate is also 1%-3% above your deposit rate. To check the loan against the FD offer, you can contact your bank. The bank can offer you flexible repayment plans so that you won’t have a problem in paying off the loan.
Loan against FD is independent of your income and credit score as it’s a secured loan where the security you submit acts as collateral.
- Available at a lower interest rate
- Zero processing fee
- You are not required to break an FDs
- Saves your interest on FD
Use Your Investments & Savings
If you don’t have a health insurance policy and are not comfortable taking a loan, you can use your investments & savings to deal with a medical emergency. You can withdraw funds from your savings account or mutual fund investments. To withdraw from mutual funds, you need to follow the procedure shown below.
- Visit the office of the mutual fund company
- Request for a withdrawal
- Fill the withdrawal form and submit the same to the concerned official
You can also do an online withdrawal. Check out the steps you need to follow.
- Visit the official website of the mutual fund company or CAMs, a mutual fund transfer agency
- Create an account by mentioning your personal and investment details
- Once the account is created, you can go and redeem the fund units
- The redemption amount will be credited to your bank account which is linked to your mutual fund investments.