Critical Illnesses: What to Know to Stay Financially Prepared

A Brief Overview on Critical Illnesses in The Country

A critical illness is a health condition that impairs your body’s functions, causing lifestyle-altering changes. If the necessary treatment measures aren’t met, this can greatly impair the quality of your life and affect your capacity to provide for your family.

According to the 2016 report of the PSA, here are the top 5 causes of death in the country:

1. Heart diseases (12.7%)
2. Neoplasms/Tumors/Cancer (10.4%)
3. Pneumonia (9.9%)
4. Cerebrovascular Disease/Stroke (9.8%)
5. Hypertensive Disease (5.7%)
   
   

In terms of average medical costs, the rankings are as follows:

1. Cerebrovascular Disease/Stroke – Approximate Cost: PHP 1.8M
2. Neoplasms/Tumors/Cancer Approximate Cost: PHP 1.6M
3. Heart diseases – Approximate Cost: PHP 978 650
4. Hypertensive Disease - Approximate Cost: PHP 850 000
5. Pneumonia – Approximate Cost: PHP 139,824
    

Source: Manila Times || Rappler || Finance MD:

Unfortunately, 84% of Filipinos aren’t ready to face medical costs and only 4% of Filipinos are enrolled in an HMO.

If you want to secure your financial stability in the future, you need to start taking action today. By making an effort to develop healthy habits and by properly managing your savings, you’re already taking the first step to a longer, healthier, and better life.

Here are some tips to help you prepare for a critical illness.

1. Get comprehensive health insurance.
   
   Investing in a tailor-fit insurance policy is the first step to attaining a better future.
   
   When bills and other related expenses arrive, having a health insurance policy will play a big part in easing your financial load. Thanks to the number of providers and plans readily available in the market, there are many health insurance plans in the Philippines that can cover you in multiple areas while providing the right amount of financial flexibility.
   
   To help you get started, policies such as the Critical Care 100 is one of the best plans you can acquire. Providing lifetime coverage of up to 100 critical illnesses, investing in this policy will give you peace of mind so you can enjoy life with your family without worrying about hefty medical bills.
   
   
2. Create an Emergency Fund
   
   In the process of creating a budget plan, make sure to allocate a decent amount of your monthly income for unexpected emergencies and illnesses.
   
   Medical costs can be very overwhelming and relying too much on credit cards and other lending options can negatively affect your long-term financial stability. Setting some cash aside for possible health issues will save you from the complications of high interest rates.
   
   Take this time to reflect on your spending habits and evaluate areas where you can cut down your costs. Life can be very unpredictable so having an emergency fund that can cover at least 3-6 months' worth of your monthly living expenses can help your family adjust with any kind of financial complication.
    
3. Develop healthier habits
   
   If you’re having difficulty following a consistent workout routine, there are many small things you can do to maintain your overall health. Adding nutritious anti-cancer food into your diet, taking the time to stretch in the morning, and getting the right amount of good-quality sleep are some simple things you can do to prevent any kind of disease.
   
   Don’t forget to take care of your mental health, too.
   
   For those that are living a fast-paced lifestyle, don’t get too caught up in your schedule that you start to neglect your health. The stress you feel from your personal and work demands can cause you to develop negative coping mechanisms such as smoking and stress-eating. On the other hand, journaling, reading a book, and even talking to a close friend of yours are easy and healthy ways for you to get through difficult periods.
    
4. Secure a line of credit
   
   Even though you should always try to avoid debt, there are times when loans will prove an efficient strategy for your financial goal.
   
   If you don’t have enough money or if your emergency funds aren’t enough, having a secured line of credit will serve as your last resort. Maintaining a good credit score and settling your current debts as early as possible will allow you to acquire a loan should the time come that you need it.
    
5. If applicable, review your current health benefits.
   
   Whether it’s issued by your company, a government agency, or a health maintenance organization (HMO), review and take note of all the current health benefits you have. When it comes to a critical disease, any amount of cash you’ll receive will definitely go a long way.
   
   No matter how big or small it may be, the funds you’ll receive from your partner agency will soften the blow of hefty medical bills. For instance, diseases such as breast cancer will cost you an average of PHP 438,000 but a health plan such as PhilHealth’s National Health Insurance Program can provide coverage of up to PHP 600,000.

A better future awaits

The adage “health is wealth” bears practical truth. Preparing for critical illnesses as early as now may seem a bit pessimistic for some, but your future self will thank you for it.

For healthier, longer, and better lives, consult with a Bancassurance Sales Executive at any of our 900 BPI branches, or call our customer care hotline at (632) 528-5501 to inquire about our products and services.