Accounting for healthcare costs is one of the most neglected aspects of retirement planning. One might not consider the large corpus that they need to build to provide a steady income in their golden years. But one often forgets to account that as age increases, health concerns also increase, which is why it is necessary to buy a health cover. Moreover, even if you have considered these expenses by accumulating a larger corpus, are you sure that you want to finance your medical bills from your savings? This is what makes it further essential to know that a health insurance plan covers these ailments that arise in future.
Let us look at the reasons why it is an absolute necessity to have health insurance as a part of your retirement financial planning.
When you’re young and healthy, it does not cross your mind to save for retirement. But in fact, it is the best time to start. A health insurance plan is available at cheaper premiums at a younger age. Moreover, the earlier you plan for your retirement, the better it is.
There are common old-age problems like weakening of the bones, loss of eyesight, hearing aid and breathing ailments, to name a few. These typical age-related issues might arise, and without a health cover, treating them might become a burden on your savings for you and your family. A cashless health insurance policy can come handy in these times, which would help in avoiding the hassle of arranging funds for treatment bills.
Along with these common ailments, a few health complications might lead to critical illnesses that are included under your health plan. It depends on the different types of coverage opted.
During your sunset period, the income is limited. At such times, increasing healthcare costs will be a burden. Enrolling for a comprehensive health insurance plan will prove to be beneficial that keeps you protected in times after retirement. It will ensure that you do not end up in a situation in which you have to liquidate your savings in case of a medical emergency. These savings should rather be used to enjoy your retirement days and to have security for significant life events such as children’s marriage, education, and so on.
Making sure these insurance policies are adequate as time progresses is essential too. An annual review of your sum assured can help estimate the sufficiency of this amount. You may consider to even opt for health insurance for senior citizens that includes explicitly the commonly occurring old age issues. Moreover, facilities like coverage for pre-existing illness are a bonus to these plans. Most health insurance plans also include pre and post hospitalisation that help in providing the much needed medical assistance after hospitalisation.
The bottom line is how you can enjoy your retirement depends on your health, and a health insurance plan is the perfect safety net. Your savings should be your last resort. The broader the coverage of your health plan, the better it is in your retirement period. After all, your happiness and peace of mind depend on your health, especially in your retirement years. Your retirement is your golden years to enjoy life without much responsibilities; don’t let financial worries about your health come in the way.