Healthcare cost should be one of the major factors you should take into consideration when planning for your retirement.
It is now a well-known fact that healthcare costs are rising at a much higher rate than retail inflation. Compared to retail inflation, which is around 4-5 per cent, medical inflation is more than double at 14 per cent, according to a report by the insurer Plum. In other words, a commodity that costs ₹1,000 today may cost ₹1,628.89 in 10 years. In contrast, a treatment will cost ₹3,707.22 in the same period.
So, if you are not prepared, healthcare costs can eat into your corpus and make life difficult.
According to the Health Insurance For India’s Missing Middle report released by Niti Aayog in 2021, Analysis from Brookings India, based on NSSO surveys, shows that over 7 per cent of India’s population is pushed into poverty every year due to healthcare costs.
In such cases, health insurance can come to the rescue.
According to a research titled Health Insurance In India, in the International Journal of Engineering, Management, Humanities And Social Sciences Paradigms (IJEMHS), “In India, people are not very aware of health insurance, and only a small part of the population takes advantage of it. Even well-educated people ignore the necessity of having proper health insurance coverage.”
However, low awareness and rising premiums often pose a hurdle. Senior citizens could find the cost even more prohibitive, as premiums rise with age.
So what does one do to bring down the cost of mediclaim? Says Parthanil Ghosh, director and chief business officer at HDFC ERGO, “Keeping health insurance premium costs low is essential to manage healthcare expenses.” He suggests that maintaining a healthy lifestyle, and availing of discounts, such as loyalty and long-term renewal discounts, among others, can make insurance affordable.
Buy A Top-Up Cover
Bu hikaye Outlook Money dergisinin July 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Outlook Money dergisinin July 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
Guide To Build Your MF Portfolio
There are ‘n’ number of funds to choose from and one has to scrutinise several factors, besides just past returns, to make a bouquet of funds that best aligns to one’s goals
Self Image: Ticket To Success?
Your capacity for success will be altered according to the image you have of yourself. So, set it on the right trajectory to move to a higher level
What Budget 2024-25 Means For You
Finance Minister Nirmala Sitharaman announced a few changes in the new tax regime, while leaving the old one untouched. The government also increased taxes on long-term capital gains. We decode what the Budget means for you
Factor Investing In Mutual Funds
A blend of active and passive fund management approaches, factor investing offers diversification, but investors should ensure these factors align with their goals and risk profiles
Mistakes to Avoid in the Retirement Planning Stage
Not starting early, not looking at retirement planning holistically and not consulting a financial advisor are among the top mistakes one should avoid
Asset Allocation Is Akin To Picking A Cricket Team; Here's Why
Judicious asset allocation will enable you to generate maximum gains and achieve different goals at different intervals by effectively positioning them according to the market situation.
EMI VS SIP Debate: Which Path Aligns with Your Financial Goals?
Although EMls may seem initially manageable, the final cost can be much higher; SIPs, on the other hand, focus on capital appreciation through marketlinked investments rather than capital repayment.
Mutual Fund SIP: Tool to Make The Impossible Possible
A mutual fund systematic investment plan allows you to reinvest the interest earned into the fund, thus helping you to build a big corpus even with small contributions over the long term.
Why are Manufacturing Funds Worthy of Your Portfolio?
India's manufacturing sector greatly impacts fields like logistics and maintenance, making this thematic fund a strong addition to your investment portfolio.
How To Help Your Ageing Parents
Experts discuss how financial conversations with parents need a big dose of sensitivity, and highlighted the needs of seniors to help those caring for their parents