Many people believe that having an HMO or medical insurance plan means they’re financially secure in case of a health emergency. But Registered Financial Planner Edison Ong warns that relying solely on these plans can leave you vulnerable when a real medical crisis hits.
“People think once they have an HMO or a medical insurance plan, they’re set. But there’s no guarantee that when the time comes, it will actually save you,” Ong says.
The Harsh Reality of Medical Costs
Medical expenses can add up quickly, and most HMOs have limits that policyholders aren’t always aware of. While they may cover routine check-ups, lab tests, and some hospitalization costs, they don’t always cover critical care, long-term treatments, or major medical procedures.
“Probably you say, ‘Oh, I bought an HMO. I have a medical insurance plan.’ But again, HMO and medical insurance are no guarantee that when you get sick and the day comes that you need them, it’s gone.”
Many people don’t realize that even if they have insurance, they might still need to cover a large portion of medical bills out of pocket. This can wipe out savings, forcing families into financial distress just to afford treatment.
Why You Need a Family Medical Fund
Ong stresses the importance of having a financial safety net beyond insurance.
“When you start young, your financial journey is for yourself. You save for yourself, invest for yourself. But eventually, you reach milestones—marriage, family, even going abroad. One milestone people forget? Sickness.”
He explains that a family medical fund is crucial for covering unexpected medical costs. Unlike insurance, which has limits and waiting periods, a medical fund is liquid and accessible when you need it most.
“When you get sick, it is the family medical fund that will actually save you. Because on your own, you’re spending for yourself. But when the time comes, and you need major treatment, your insurance might not be enough.”
Planning for the Unexpected
Ong believes that proper financial planning isn’t just about building wealth—it’s about protecting it.
“No matter how good you are, walang maniniwala sayo pag wala ka pera. The reality is, anything can happen in the financial world. A bank can go bankrupt. A company can shut down. An HMO can change its policies. That’s why you need to prepare for the unexpected.”
The bottom line? An HMO is a good start, but it’s not enough. A solid financial plan must include a personal medical fund to ensure you’re truly covered—no matter what happens
