If you are considering a surgical cosmetic treatment, you might have discovered that plastic surgery is not a cheap expense. When paying cash is not an option, you might have to consider financing the surgery by other means.
You can consider several methods like a medical loan, home equity line of credit or 401(k) loan, medical credit card, and others. However, be sure to consider all options before borrowing substantial debt.
Insurance Cover For Plastic Surgery
Before you evaluate your ways to pay for plastic surgery, be sure to get an estimate of the expenses of the procedure, including follow-up treatments, office visits, and medications.
Be sure to contact your health insurance company to determine what your policy covers.
The means to get your insurance to pay for plastic surgery will depend on the policy, the procedure, and whether the cosmetic change is medically necessary. The insurer will notify you whether you are partially or entirely covered.
Ways To Finance Plastic Surgery
Check out these ways through which you can finance your plastic surgery and review which option complies with your current financial situation –
Medical loans are nothing but personal loans referred to by another name.
Banks, credit unions, and online lenders provide these loans, which provide fixed annual percentage rates (APRs) and terms that range from 12 to 60 months or greater.
When you get approved for a personal loan, you will receive the full loan upfront, and then you will have to repay it in equal monthly installments. Loan amounts can even range from $1,000 to $50,000 or greater.
Since personal loans are typically unsecured, you won’t have to pledge collateral when filling applications. Your creditworthiness acts as the crucial factor for qualifying for the loan.
Medical Credit Card
A medical credit card works like traditional credit cards and is an alternative if your insurance does not cover your surgery expenses.
You receive a card with a preset line of credit and APR that you can use to charge your medical expenses to the credit card, and pay off the entire balance or produce monthly payments.
You must consider the terms and how interest gets charged before using a plastic surgery credit card as they can get tricky and might lead you into paying more than you had anticipated.
0% Intro APR Credit Card
Credit cards can act as another plastic surgery financing option. According to your credit limit, you might be able to cover some or all of the procedure via a traditional credit card while considering the card’s APR.
The average credit card interest rate is set at 16.88%; however, some credit cards offer a 0% introductory APR.
These intro periods often last about 12 to 21 months, and if you become eligible, you will have to pay no interest while the intro period lasts.
These cards typically have deferred interest, which means that interest accumulates, but you do not have to pay it while the specified time frame lasts.
If you pay off the entire balance during the intro period, then there exists no need to pay interest on purchases made by you.
Some plastic surgeons offer payment plans or in-house options for financing plastic surgery.
These can fluctuate in detail and scope, so you must check with your doctor’s financing office to see the available options.
For instance, you might have to provide a down payment or pay a preset cost every month. Plastic surgery payment plans can be a decent option for people with poor credit, as you might set up a plan with no credit check.
If the medical provider does not offer an in-house payment plan, you can recommend a plastic surgery payment plan yourself.
Consider the estimated cost of the procedure and evaluate how much you can add toward the amount every month, and determine how long it would take to clear the debt.
Ask the medical provider whether your financial plan will charge a fee or interest, and what would be the consequences if you fall behind on payments.
Home Equity Line Of Credit
This option revolves around the home equity you have built, which is your property’s market worth minus your mortgage balance.
Lenders will let qualified applicants borrow about 80% to 90% of their home value. Once eligible, you can draw from the account during a specific time frame referred to as the draw period.
You may choose to pay off the balance and re-borrow from the line of credit, clearing interest only on the borrowed amount, during this time frame.
After the draw period comes the repayment period, where you can no longer use the line of credit and have to repay any balance with you on it.
Since you are securing this loan with your house, it could bring trouble if you fall behind on payments. If you default, you might lose your home, which is a concept that might seem troubling for any operation.
Home Equity Loan
Thanks to a home equity loan, you can borrow against the equity you have developed in your residence.
It is different from a HELOC, where you receive a lump sum of cash upfront, which you must pay back in fixed monthly installments accompanied by a fixed interest rate.
Lenders permit qualified homeowners to borrow about 85% of the value of the home.
Similar to a HELOC, you are receiving the home equity loan with your house. If you fail several payments, the lender might foreclose on your home.
Some 401(k) retirement savings plans permit borrowers to borrow against their balances.
You must repay the lump sum of money you obtain from a 401(k), with interest and within a specific time frame of five years, as set by the Internal Revenue Service (IRS).
As per the IRS, you might borrow the lower amount of either –
- $10,000 or 50% of your vested account balance (the larger amount)
Be sure to meticulously weigh the pros and cons of cosmetic surgery financing before deciding on the right financing option, as it can cost thousands of dollars.
Consider factors such as APRs, fees, budget, and eligibility requirements for various financing options to finalize your selection.