Retirees should guard their life savings with health insurance

Retirement planning should be on the priority list of many, especially those who think it is the time for them to hang up their boots. However, without adequate health insurance coverage for all family members, your life savings can be washed away in a single blow to meet hospital costs. By paying a fraction of the coverage amount as a premium you can ensure that the insurer bears the hospital cost leaving your retirement corpus untouched for sunset years.

A recent survey report by Bajaj Capital, an investment services company, points out that three out of four Indians retiring over the next 18 months will fall short of adequate coverage and intend to increase the coverage amount. Moreover, while 75% of respondents reported a lack of adequate coverage for themselves, nearly 39% of those have also realized that they do not have any health insurance for their spouses.

The need for increasing health insurance coverage is felt particularly in the wake of the ongoing pandemic. The rising cost of hospitalisation seems to be the trigger for the increased awareness among the retirees that inadequate coverage will not help them at the time of need.

Vishwajeet Parashar, EVP, and chief marketing officer, Bajaj Capital said, “The findings of the survey highlights the fact that medical inflation is becoming a big concern for the retirees, both, who have retired and those who are retiring in near future. Although there is no fixed rule, based on the city of residence and the type of hospitals in the area where one lives, the amount of coverage may be determined. Keeping the right coverage and buying the right health insurance is the key to keep the savings secure for the retirees.”

What to do?

Everyone should buy a health insurance policy at the earliest in their life. By doing so you can avoid situations when you can be denied of the policy. This is because in case one gets diagnosed with critical diseases like cancer or heart attack then most insurers may decide not to issue a policy. If this happens then you have no option but to bear health care costs out of your savings. To avoid that take health insurance as early as possible in your life. Even having a corporate health insurance policy does not help in the long run as you will be left without coverage on the day of retirement. It is always advisable to have your own cover when you are young and healthy.

Retirees, therefore, need to have a close look at their health insurance portfolio to make sure that risks on all fronts are covered. After having a basic health insurance policy one can consider buying a critical illness plan to give additional financial security at the time of any life-threatening illness.