How Can Middle Class People Prepare For Medical Emergencies?

Medical Emergency

Life is a rollercoaster with its fair share of highs and lows, and no two moments are ever the same. Uncertainties always appear suddenly, arrive unexpectedly, and cause significant emotional and financial disruption!

Even though it is impossible to completely prepare for the worst, it is helpful to have measures in place to secure a safety net that can assist in minimizing any damage.

Our health is the most important thing. We need to be financially prepared to deal with anything that comes our way.

But the sad part is that, majority of middle-class individuals lack health insurance. Not every clinic will waive fees or every doctor will be kind. If an unfortunate accident occurs or a person has a medical condition for which treatment costs are expensive, what happens next? They don’t go to the best hospitals and clinics, don’t get the best surgeries and treatments, and they don’t get care from the best people. What kinds of dangers are associated with situations like that? If you can’t get your sick child the best care, can you handle it? A common man encounters this every day.

Read: 8 Ways to Borrow Money In India – The Money Club


 Medical Emergency? Join The Community Of Friends Who Help In Crisis.               

How to handle such a medical emergency?

Out-of-pocket spending for health care is a common unexpected expense that can be a substantial hardship for those without a financial cushion. So, how to handle such a situation?

The best is way is to save a certain amount regularly for such unforeseen situations. Saving a set amount from your earnings every month can help you accumulate enough funds that can be useful on a rainy day. Even if it means cutting back on your monthly expenses, you will be glad you saved this money in case of an emergency.

Life’s unexpected events become less disruptive when you concentrate on savings. You won’t have to worry as much about paying for a hospital or getting the medicines you need to treat an acute illness. The money will be there for you to use as needed. So the best way to handle a medical emergency is to save. Now the next question arises how?

Read: The Best Alternative To Borrowing Money from Friends

Save with Money Club

What if you have a community of social network who can help you in a crisis? Doesn’t it sound nice? This is what exactly Money Club does.

Money club is an online chit fund platform which has created the first ever social network of money. It helps you save money with the help of verified peers.

Chit funds are a tried and tested financial tool that has been used in India for ages. Chit fund investments are a monthly investing strategy that let you put your extra cash in a safe and convenient place. The Money Club uses high-end technology to be able to bring basic financial services (saving, borrowing and investing) to a segment of the Bharat that has not yet had access to a bank. For millions of customers, we provide a safety net in times of crisis.

Money Club provides you a group of verified members with whom you can pool up money. A chit fund is a type of investment in which members agree to come together and deposit a pre-determined amount of money in a pot. The member who bids the lowest amount for the pot will later receive the money from this pot.  In times of need, you can also borrow money which is multiples of what you have invested.

Suppose Abhay earns 30,000 per month. He barely manages to save Rs 2000 per month. He puts that money in a recurring deposit. After 2 months his mother falls ill and needs 20000 for her treatment. The maximum that Abhay can borrow from the recurring account is Rs 3000. Had he invested in a chit plan of Rs 20,000 he would have the option of borrowing in multiples of what he had invested. He could have bid for the whole pot of 20000.

Read: Need Money Urgently? 10 Ways to Get Instant Cash for Emergencies

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Download the Money Club App to save for all your financial needs.

Chit funds can be beneficial to you in the following ways:

  • Low interest rate: Bidders mutually determine the rate of interest, which varies from auction to auction. Furthermore, chit funds offer lower interest rates to borrowers than banks, moneylenders and other financial intermediaries.
  • High Dividend: Investors receive a dividend that is higher than the interest earned on savings in multiple deposit schemes.
  • Urgent Cash: You can get instant cash if you have a financial emergency or a sudden expense. You can also borrow the pot (a lump sum amount) after paying your first installment.
  • Less Or No Paperwork: A chit fund meets the financial requirements of the people without asking for details such as a PAN card and IT returns.
  • Collateral-free: Unlike moneylenders chit funds allow you to borrow money without pledging any assets as collateral.

Read: Financial problems: 10 Steps to Resolve your Financial Problems

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