5 Tips To Secure Your Health Expenses

Retirement brings a new set of challenges, including healthcare expenses. Here are five tips to help you provide for such expenses after retirement.

Meghna Maiti
May 10, 2023
5 Tips To Secure Your Health Expenses

As we age, our healthcare expenses tend to increase and it becomes essential to plan for them. Here are some tips to help you cover health expenses after retirement in India.



Tip #1: Purchase An Independent Health Policy


It is common for individuals to depend on their employer-provided health insurance until retirement, but purchasing an independent health policy for yourself and your dependents is crucial. Bhuvanaa Shreeram, co-founder & head of financial planning at House of Alpha, a financial planning firm, emphasizes the importance of getting an independent health policy at least five-six years before retirement to ensure that the waiting period for pre-existing illnesses gets over before the retirement date. Moreover, purchasing a sufficiently large top-up policy (up to Rs 1 crore) can help cover your and your spouse’s healthcare expenses.


Tip #2: Customize Your Health Insurance Policy


Yogesh Gupta, Chief Business Officer at Bimaplan, an affordable insurance platform, recommends customizing your health insurance policy to ensure that it covers pre-existing diseases and critical illnesses. He suggests opting for OPD coverage to cover frequent OPD visits’ expenses. It is crucial to have an adequate sum insured to get effective coverage. It is recommended to check the coverage list, including waiting periods, room rent, procedures, and illness lists, to remain secure against any health-related monetary concerns post-retirement.


Tip #3: Have A Health Savings Account


A health savings account is a tax-advantaged account that can help you save for medical expenses. You can contribute a set amount over a period, which can be later used to pay off medical care bills, medicines, or any other medical emergency. A health savings account can help you cover your healthcare expenses and provide financial security during retirement.


Tip #4: Plan To Buy Assets That Can Be Liquidated Easily


It is essential to invest in assets that can be easily liquidated in case of an emergency. Assets such as bonds, mutual funds, and precious jewellery can be easily converted into cash in case of any financial need. These assets can provide a safety net during emergencies and help you cover your healthcare expenses.


Tip #5: Set Aside Retirement Proceeds For A Health Emergency Fund


Shreeram suggests setting aside part of your retirement proceeds for a health emergency fund. In India, we do not have long-term care coverage, and having a health emergency fund can provide financial security during your retirement years. Planning and budgeting for your healthcare expenses and having a contingency plan for emergencies are crucial.


Planning for healthcare expenses after retirement is essential. It is vital to purchase an independent health policy, customize your health insurance plan, have a health savings account, invest in assets that can be easily liquidated and set aside retirement proceeds for a health emergency fund. By following these tips, you can provide for your healthcare expenses and ensure financial security during retirement.

Related Articles