Medical bills can be a real downer, especially when they threaten to wipe out your hard-earned savings. No wonder nobody wants to think of them. Here in Singapore, with all the amazing healthcare options we have, costs can add up quickly.
So, when a medical emergency strikes, you might be faced with a tough decision: dig into your savings or take out a medical loan? We all know the benefits of a healthy savings account, but in some situations, a medical loan might be the smarter option.
1. Peace of mind during a stressful time
Falling ill is stressful enough, do not add financial worries to the mix. Having a medical loan from a legalised money lender in Singapore allows you to focus on getting better, knowing the bills are under control. Imagine the relief of not having to constantly check your bank balance or feeling guilty about using your travel fund for surgery. Peace of mind can be a powerful medicine in itself!
2. Savings are your safety net, not just for medical emergencies
Medical emergencies are not the only things life throws our way. A leaky roof, a car breakdown – these unexpected expenses can pop up anytime. Keeping your savings buffer intact means you are prepared for whatever comes next, medical or not.
3. Spread out the cost, manage it better
Medical bills can be like a gut punch – a huge sum all at once. A medical loan allows you to break down that cost into manageable monthly installments. This makes budgeting easier and allows you to focus on getting healthy without the financial pressure.
4. Use MediSave, but do not drain it completely
Singapore’s amazing MediSave scheme is there to help, but it is not bottomless. Using a medical loan to cover what MediSave does not allows you to keep your MediSave account healthy. This is especially important for long-term care needs or future medical emergencies.
5. Medical loan interest rates can be reasonable
Interest rates are a concern, of course. But compared to the potential loss of interest you might incur by dipping into investments or fixed deposits early, medical loan rates can be quite reasonable. Shop around and compare plans from different banks to find the best fit for your situation.
Conclusion
Medical loan is a tool, and like any tool, it needs to be used wisely. Only borrow what you need and do not get tempted to use the extra cash for a non-medical expense. Choose a loan with a repayment term you can comfortably manage so you will not stretch yourself too thin. And of course, make your payments on time to avoid late fees and a ding to your credit score.
Ultimately, the decision of using savings or a medical loan is a personal one. There is no shame in considering a loan, especially if it means prioritizing your health and keeping your financial future secure. Talk to your doctor, consider your financial situation, and do not hesitate to consult a financial advisor if you need some extra guidance. Your health is your wealth!
