With the 2nd wave turning out to be more deadly and load on hospitals, many of them are not entertaining cashless claims. People despite having health covers have to go through the reimbursement route. Many are also not getting 100 per cent claim amount and have to cough out at least 20-30 per cent of the hospital bill as certain covid-treatment related items like PPE kits, sanitizers are not covered under regular health policies. People have hence realised the importance of emergency fund, read adequate, the hard way. Certain things to bear in mind here:
• Do not equate emergency fund as some random amount in savings account.
• Even if you have health cover, you cannot 100 per cent rely on it in the event of hospitalisation. You will require your emergency fund.
• Safety of capital and liquidity comes first. So do not look for returns while parking money for emergency fund. Fixed deposits, Liquid mutual fund are suitable options.
Sometimes we learn few lessons the hard way, through adverse experiences. The important thing is to remember these lessons even during good times.