Health insurance alone will not cover all of your healthcare costs during retirement, so you may want to buy a supplemental medical insurance policy to bridge the gap. Such policies will not be substitute for health plans and, in fact, pay a lump sum any time there is an event that occurs and needs hospitalisation.
Some popular supplemental policies are specific disease insurance such as for cancer, accidental death and dismemberment insurance, accident health insurance and hospital indemnity insurance. The benefits of a supplemental health insurance plan include cash benefits, the ability to offset lost income unlike a traditional health insurance policy, and often payment for pre-existing conditions.
In the age of increasing family and monetary pressures, daily living costs are met up with such policies on the presumption that you may not be paid by your employer when you are hospitalised or recovering from a serious health condition. Though a new concept in India, these plans will cover the gaps in your regular policy and will go a long way for people who foresee hospitalisation in the future. The key advantage of these policies are that they help individuals work towards long-term healthcare.
(By V. Jagannathan, Chairman and Managing Director, Star Health and Allied Insurance)