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While many people tend to feel quite a financial impact, you can help yourself by reducing any long-term consequences by careful planning in the present.
COVID-19, that is commonly known by the name ‘coronavirus’ among many of us, is changing the lives of people all around the world in more ways than you can think. In addition to the various considerations regarding one’s health, another quite a big negative impact that this virus has caused is related to one’s finances.
Many people all across the globe are likely to suffer the loss of their source of income or a significant reduction in their income as the countries in the world are resorting to implementing aggressive social distancing measures in order to help to slow down the spread of this virus.
If you someone who is worried your financial situation could possibly be affected as an outcome of this coronavirus pandemic outbreak, you are definitely not the only one, and you are completely right to be concerned about the same. The light at the end of the tunnel, however, is that you do not have to just sit back and watch your financial stability be ruined – you can actually work towards limiting the impact.
Here are some smart ways that you should give a read if you are worried about COVID-19 destabilizing your financial life. These will help you protect your finances from this outbreak.
While insurance companies in many places around the world have agreed to offer their policyholders coverage for the testing of coronavirus free of charge, some of them are not willing to waive off the costs of the treatment.
Many people who are facing this virus may be facing a few mild symptoms that are likely to be cured at home, but some cases will require hospitalization. If this unfortunate situation ever happens to you or your family, you will have to be prepared for the costs that are likely to be incurred in the treatment. Therefore, it is important to review the coverage that is provided by your insurance company.
Many of the insurance policies have deductibles that one needs to meet, along with high coinsurance costs for any emergency room visit, especially if you visit a hospital that is not on the network. The last thing you want to do is sit to figure out where your funds are going during a time of crisis. Be sure to know all about how your coverage is, and find out the hospitals that come under your insurance company’s network. There could be a huge amount’s difference between a hospital that is in the network and that is out of the network.
It is also a good idea to consider aiming to start saving sufficient funds in order to cover your deductibles.
With a dual-threat of your income being lost as well as the economy going into recession, there is not a better time to come to have a huge emergency fund at hand. If you do not already have an emergency fund that you have saved and contains about three to six months of your living expenses added up, do all that you can in your capacity to start stacking up this emergency fund, even if it means cutting down on all your non-essential spending.
With so much of everyone’s public life being shut down due to this coronavirus pandemic, it should be easier than usual for you to cut down your spending and save the funds towards your emergency money. So, you better start diverting all your money that you can into a savings account that offers you good returns for your risk appetite.
Most of the people out there are going ahead and canceling all of their trips planned as of now, rather than planning for traveling in the future. Because at some point, you will want to reschedule any travel vacation plans that you had lined up in the past, and you will probably want to go and visit your family members once the aggressive social distancing measures are lifted up by the authorities all across the globe.
The only issue is that there is a risk involved – the current coronavirus threat is said to die down with the warm temperatures, but it might just come back when the temperatures start to drop. Of course, you do not want to suspend all plans to travel for the foreseeable future but you also do not want to sign up for any trips that you might have to cancel in the coming times.
This is where the credit cards that offer travel insurance kick in the picture. Travel insurance is not likely to cover or protect you if you cancel your future plans because you fear a coronavirus pandemic. However, most of the credit cards will offer this benefit that will provide you with coverage in the event of the following:
So if your government or your doctor imposes a lockdown again, your insurance policy is likely to cover you. However, you should be absolutely certain to read the fine print on any of the credit cards that you are considering to opt for because you need to understand properly what is covered and what is not.
When we talk about the preparations for the coronavirus pandemic, the most important steps that one needs to take is to stay safe by themselves and also ensure that their loved ones are completely safe as well. Your main focus should be on protecting your health and ensuring the safety of those around you such as your family members, community members, etc.
But the coronavirus along with the social distancing measures that are taken to prevent its spread are also likely to have an impact that affects most of us economically as well. This makes it extremely important to be prepared for this effect to hit you as lightly as possible. Therefore, it would not hurt you to take the above mentioned 3 ways to protect your finances from what is yet to come in the future.
So we hope you stay safe, follow the government measures, and keep a constant check on your finances – let’s come out of this coronavirus pandemic stronger.