Plan your retirement with health insurance

Planning your retirement is the most crucial step you need to take while starting your financial planning and investments. What most people do not realize is that Health Insurance plays a pivotal role in people’s post-retirement life. With years of experience and hard-earned savings, you would expect your retired life to be peaceful, and Health Insurance is a necessary tool that will give you peace of mind from medical expenses.

If you are employed, you will most likely be covered under your employer-sponsored health insurance, otherwise known as a group health insurance plan. This will give you protection against unforeseen medical emergencies. In addition to covering yourself, many group health insurance plans also allow you to add your family including your parents as well.

But when you retire and the corporate health insurance plan is no longer applicable, and you will be left without any health insurance coverage. As a result, you will be vulnerable to any medical emergencies that may arise. Therefore, it is necessary to plan your future by investing in a separate health insurance policy of your own to be protected against medical expenses and get unhindered coverage. On the other hand, if you are self-employed, you won’t have any group health insurance coverage, so it becomes essential to avail of a suitable medical insurance policy.

Ideal time to purchase a health insurance policy.

Now the question may arise, “What is the ideal time to purchase health insurance?” Many of us may tend to procrastinate the idea of buying health insurance until any health condition arises. We do not know that investing in a health insurance plan early can save them a lot of money. For a starter, you can get back all or a considerable chunk of the premium you paid towards health insurance as an income tax deduction under Section 80D of the Income Tax Act, 1961.

Additionally, the premium you have to pay, if you buy a health plan at an early age, will considerably be less. This reduces the burden of health insurance premiums and helps you focus on your effective financial planning.

Including health insurance in your retirement plan will considerably reduce your out-of-pocket spending post-retirement. Generally, old age is associated with health problems. In your golden age, a health insurance plan will take care of your medical expenses and leave you to enjoy your retirement life to its fullest.

Many health insurance plans come with an option of lifelong renewal. Thus providing continuous coverage irrespective of your age. Based on your requirements, you can invest either in individual health insurance or family health insurance. It is advisable to have a family floater health insurance policy, which is cost-effective, to cover your family instead of buying a separate policy for each family member.

If you are above 60 years old or looking to cover your parents who are above 60, you can still avail yourself of comprehensive health insurance coverage. There are many policies available in the market that exclusively cater to the needs of senior citizens. Although the premium may be comparatively a bit high, you can still avail tax deductions on that. Health insurance for senior citizens is an effective tool to provide firm financial support against various age-related health problems.

Apart from hospitalisation, elderly people generally require regular doctor visits to check their vitals and maintain a healthy lifestyle. These kinds of services come under outpatient consultation (OPD) which is covered by many policies crafted for senior citizens. Affording OPD expenses on your own can take a huge toll on your post-retirement finances. With a suitable health insurance policy you can manage such expenses without having to compromise your financial stability.

Health insurance also plays a crucial role in maintaining your preventive healthcare and well-being post-retirement through various wellness activities that come with the plan. These activities motivate people through specially designed training programs such as weight loss, step tracking, chronic condition management, etc.

It is equally important to opt for a critical illness health insurance policy to protect yourself from life-threatening critical illnesses. There are also disease-specific policies for people who live with chronic health conditions such as diabetes.

Based on your unique health needs, you should choose your health insurance coverage and live your post-retirement life without any worries.