“There is no greater wealth than health” – most people would probably agree with these words. Indeed, health is the most valuable human resource, and its connection with financial well-being is direct and two-way. On the one hand, if your income is insufficient or you have loans that you struggle to repay, this will inevitably have a negative impact on your physical and mental health. On the other hand, if health problems arise at some point in your life, they may disrupt your financial stability due to medical expenses, and even limit to some extent or entirely your ability to generate income, work, and remain active.

Reasonable financial behaviour can help you ensure peace of mind and protect you from falling into overindebtedness or financial difficulties that may endanger both your health and interpersonal relationships within the family, while also protecting you from unnecessary stress.

Of course, a person cannot predict potential health problems, but they can take certain steps to reduce the risks. The responsibility is primarily personal – how you take care of your health, whether and how you prepare for potential medical expenses and financial risks related to your health and life. Here is what you should pay attention to!

 

A Healthy Lifestyle and Preventive Health Care

Healthy eating, physical activity, giving up harmful habits such as smoking and excessive alcohol consumption, and attention to mental health are among the key elements of a healthy lifestyle. It is equally important not to overwork yourself and to rest in order to avoid falling into states of exhaustion, stress, or burnout that can lead to chronic stress.

Regular preventive check-ups are part of adequate preventive care. They help with the early detection of diseases, which may significantly reduce the costs of more expensive and prolonged treatment in the future. Preventive care is also important for avoiding complications in people with chronic illnesses. In this way, a healthy lifestyle, prevention, and early intervention not only improve quality of life but also protect against financial difficulties.

 

Health Insurance

Health insurance is a public mechanism for access to medical care and provides a certain degree of protection from potentially high costs related to health care. In Bulgaria, it is regulated by the Health Insurance Act, and it is divided into two forms – mandatory and voluntary health insurance.

Mandatory health insurance provides a basic package of health services, guaranteed by the budget of the National Health Insurance Fund (NHIF). It is based on the principles of compulsory participation and solidarity. All Bulgarian citizens, as well as certain categories of foreign citizens, are subject to mandatory insurance with the NHIF. They pay health insurance contributions in legally defined amounts to the National Revenue Agency, and the collected funds go to the NHIF budget and are used to provide medical care, regular preventive check-ups, and other health services.

Voluntary health insurance covers medical insurance policies offered by licensed insurance companies. There are different types of insurance products through which you may effectively manage risks related to life and health and financially protect yourself in various, often serious, situations.

 

Medical Insurance

Medical Insurance, also known as health insurance, provides financial protection for specific medical risks and easy access to health services. In practice, it saves you time, effort, and money.

Medical (health) insurance policies are voluntary and cover care, prevention, and recovery for the insured person. They may be individual, family, or group policies. Many employers choose to conclude group health insurance policies for their employees as part of their benefits package. The main coverages include outpatient and inpatient treatment and may be extended with additional ones – for medical supplies, dental treatment, preventive care, maternity care, and childbirth. Consumers may choose different combinations of coverages and coverage limits.

Other types of voluntary medical insurance policies are also available on the market. Among them are those for treatment of critical conditions/diseases in Bulgaria and/or abroad. International medical insurance provides access to specialised medical care, diagnostics, and treatment in Bulgaria and worldwide. Medical insurance for treatment of critical illnesses covers hospital treatment costs in severe conditions such as cancer, cardiovascular diseases, and others. Another popular product in this business line is travel medical insurance "Assistance when traveling abroad".

Medical insurance policies are mandatory for foreign citizens, regardless of whether they are staying in Bulgaria short-term or long-term. The main coverages include medical expenses for treatment and hospital stay, as well as emergency dental care. The minimum limit for the insurance is legally defined.

 

Accident Insurance

Even if you are especially cautious, accidents do happen. Besides injury, they bring various negative consequences related to potentially high medical expenses and income loss due to incapacity for work. Accident insurance provides protection against risks to life, health, and bodily integrity. They may be individual or group policies. Their main coverages include permanent loss of work capacity and death resulting from an accident. Additional optional coverages may also be added to the policy – temporary loss of work capacity, coverage for occupational disease, medical expenses, transportation, repatriation, and others.
There are many varieties of this type of insurance – for example, “General Accident”, accident insurance for different groups such as students, tourists, hotel guests, athletes, and others. Most are voluntary, but some are mandatory. Among the mandatory ones is “Occupational Accident Insurance”, which is concluded by the employer at their own expense and covers workers and employees performing activities with risk of work-related injuries. It covers risks such as permanent and temporary incapacity and death resulting from an occupational accident. Also mandatory is the “Passenger Accident Insurance in Public Transport”, which covers risks of death and disability resulting from an accident involving public transportation.

 

Life Insurance

Life Insurance (you can find more information in article "Life Insurances") provides financial protection for you and your loved ones in difficult situations related to your life and health. The main coverage includes the risk of death due to an accident or illness and, usually, loss of work capacity – permanent and temporary. As with other insurance products, additional coverages such as certain types of medical expenses may be offered. Mixed life insurance policies – savings, investment, and others – in addition to providing protection against these risks, also offer the opportunity to accumulate funds for your long-term life goals.

 

Useful links:

Health Insurance Act

National Health Insurance Fund (NHIF)

Mandatory health insurance with the NHIF

Regulatory amounts of health insurance contributions to the National Revenue Agency