Planning for your retirement is the most important step you should take when starting your financial planning and investing. Most people don’t realize that health insurance plays a key role in people’s post-retirement lives. With years of experience and hard-earned savings, you expect your retirement life to be peaceful, and health insurance is a necessary tool to give you peace of mind from medical expenses.
If you are employed, you are most likely 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.
But once you retire and the corporate health insurance plan is no longer applicable, you will be without health insurance coverage. As a result, you will be vulnerable to any medical emergency that may arise. Therefore, it is necessary to plan for your future by investing in your own health insurance policy to protect yourself from medical expenses and get hassle-free coverage. On the other hand, if you are self-employed, you will not have any group health insurance coverage, so availing the right health insurance policy becomes important.
An 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 put off the idea of buying health insurance until we have a health problem. Little do we know that investing in a health insurance plan early can save them a lot of money. For starters, you can get back all or a substantial part of the premium you paid for health insurance as an income tax deduction under Section 80D of the Income Tax Act, 1961.
Also, the premium you have to pay if you buy a health plan at an early age will be significantly 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 significantly reduce your out-of-pocket post-retirement expenses. In general, old age is associated with health problems. A health insurance plan in your golden age will take care of your medical expenses and let you enjoy your retirement life to the fullest.
Many health insurance plans have a lifetime renewal option. Thus ensuring continuous coverage regardless of your age. Depending on your requirements, you can invest in either individual health insurance or family health insurance. It is advisable to have a family floater health insurance policy that is cost-effective to cover your family instead of buying a separate policy for each family member.
If you are over 60 or want to insure your parents who are over 60, you can still benefit from comprehensive health insurance. There are many policies in the market that exclusively cater to the needs of senior citizens. Although the premium may be relatively a bit high, you can still avail tax deductions. Senior health insurance is an effective tool to provide solid financial support against various age-related health problems.
In addition to hospitalization, seniors generally require regular visits to the doctor to check their vitals and maintain a healthy lifestyle. These types of services are provided by outpatient counseling (OPD), which is covered under many policies designed for senior citizens. Carrying OPD expenses on your own can take a huge toll on your post-retirement finances. With the right health insurance policy, you can manage such expenses without jeopardizing your financial stability.
Health insurance also plays a crucial role in maintaining your preventive health care and well-being after retirement through various health measures associated with the plan. These activities motivate people through specially designed training programs such as weight loss, step tracking, chronic condition management, and more.
It is equally important to opt for a critical illness health insurance policy to protect against serious life-threatening illnesses. There are also disease-specific policies for people living 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 worry.
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