The Biggest Financial Blackhole And How To Avoid It?
If we asked you right now to state a few examples of what you consider to be the major expenses of an average household, what do you think will be the items on your list? Some would say housing, others would favor taxes to be the biggest expense, still, others would probably claim transportation to be a major expense. Let’s be honest; it is highly unlikely that you will come with an answer of “healthcare” while having a debate about the major expenses of an average household. Yes, we understand the look on your face right now. Go ahead, you can stare all you want but it wouldn’t stop being the truth that “healthcare” is indeed a major expense in this time and age.
Let’s Take A Look At The Facts And Figures
Did you know that around 56 million people were incapable of paying their healthcare related costs in the year 2013? In other words, the year 2013 saw one in every 5 adults in the United States of America who struggled with the cost of healthcare. Fast forward to six years later and the facts and figures for the year 2019 are much worse than that. As per an estimate, around 20% of the people take longer than a year to pay for healthcare while another 10% are totally unable to make the payment in the first place. More often than not, the liability to pay for healthcare results in many people having to cut back on clothing, rent, groceries, or even avoiding receiving healthcare or medication in the first place. All of this translates directly into a dramatic decline in terms of overall quality of life.
Why Is Healthcare A Major Expense?
The reason why healthcare is turning unaffordable for the public is that this is an expense that has multiple layers to it. For instance, first of all, you are confronted with the cost of preventative care. If you are someone to take his health any seriously, it is likely that you opt for routine checkups from time to time. Be it a general body scan or a routine dental appointment, examination for your eyesight or a checkup for your sense of hearing, all of such preventative measures can pile up and end up costing you a significant amount of money in the long run.
Regardless of how strongly do you take the preventative care, it is impossible for the body to never fall prey to illness. For instance, an allergic reaction against pollen in the spring season is not in your control. Or catching flu from a colleague at work is not your fault. Nonetheless, you are the one who has to bear the cost of such minor illnesses that you conceive from time to time. Here’s another healthcare-related cost that silently eats up another chunk of your budget on a yearly basis.
But it doesn’t stop there. You may even be comfortable handling the cost of treatment and cure for the minor illnesses, but is there a guarantee that you will never end up being a victim of a critical illness? Be it the heart disease or the likes of multiple sclerosis, cancers or diabetes, the deleterious impact of the critical illnesses on your financial stability and security is sufficient to push you a step closer to bankruptcy. Then, of course, you have to factor in for the unforeseen emergencies that were not even considered while planning the budget. Think of an emergency surgery that can easily cost you upwards of $50,000. Wouldn’t that make the healthcare cost a major expense for you?
Another prominent subsidiary of healthcare costs is that of optional surgeries or treatments. For example, you may end up being sick of wearing the spectacles and choose to go for the Lasik eye surgery. Or perhaps the DNS will finally get the best of you and you will decide to cure it once and for all with a rhinoplasty. Just because you are the one opting for such treatments doesn’t mean that these will cost you any less. And lastly, there is an additional cost of pharmaceuticals that are prescribed for the purpose of optimizing your health. Now imagine a blend of all of these prominent healthcare costs and you will get a clearer picture of why it has a capacity to be a major expense for an average household.
The above-mentioned information essentially highlights the biggest financial black hole. Since the majority of us fail to consider healthcare as a major expense, we fail to plan our budget accordingly leaving the room for a medical emergency to push us into bankruptcy. If you are someone who would like to minimize such a risk for yourself and keep your loved ones financially secure in the long run, it is time that you started looking into the health and critical illness insurance. You may think of it as expenditure in the short term, but it is essentially an investment that protects your financial stability in the long run.