The word “retirement” can induce mixed emotions in people of different age groups. But, life after retirement is considered to be the golden age in a true sense. A person is considerably free of mundane worries or responsibilities. However, one thing a person cannot be completely free of are health issues.
A healthy body will help you live to the fullest and enjoy the golden age. Thus, at this point in time, it is crucial to keep your body healthy. Being healthy does not mean that you avoid taking the worst into consideration. Here are tips to financially prepare for any health-related concerns that may hamper your stress-free life.
How To Manage Health Care Costs After Retirement?
Tip #1 Cover Health Care Costs With Health Insurance
Health insurance is the key to managing most of your health care expenses when you feel the need for availing treatment. If you buy a suitable plan at the right time, your retirement insurance will be more than enough to cover major costs. This way, you do not have to worry about saving a part of your pension for the sake of health care. Here is the ideal way of choosing retirement insurance:
- Network hospitals: The first thing you should consider while buying health policy is to know how large is the insurer’s network of hospitals. You can avail cashless treatments if you get treated at a network hospital.
- Health benefits: It is advisable to choose a plan with a high number of health benefits or coverage and the maximum sum assured possible as per your plan. Some insurers offer both of these. Always make sure to get the most out of what you are paying.
- Entry and renewal age: A health insurance plan has conditions like entry and renewal age. The entry age should ideally be between 60 to 80 years. This will allow you to buy a plan later in life as well. The renewal age, as the name suggests, is the maximum age till when you can renew your health plan. Choose an insurer that offers the highest renewal age.
Tip #2 Identify Smaller Expenses
An important step towards managing health care cost is to break it into smaller portions. Break the costs of your medical expenses into monthly requirements. Prepare a list of medicines that you and your partner or family members need each month.
Next, take into consideration the money required for getting a regular checkup done. Ideally, a senior citizen should visit the doctor for a routine checkup on monthly basis. Apart from the routine check, consider going in for a full body checkup at least twice in a year.
Remember to maintain a basic log of the results of your routine checks. A simple file should suffice. This will prove to be helpful in case of an emergency. The doctor can get a quick reference of your current health condition and will not have to investigate your case from scratch.
Tip #3 Think Long Term
While managing your health care expenses, always think of bad situations. The idea is to simply be prepared for the worst. This does not necessarily mean that you will have to face those bad times. Just be financially prepared for an illness that may occur a couple of years from now.
Some insurance companies cover pre-existing diseases after the completion of a certain time period. When buying health insurance consider taking into account your medical history and illness you are susceptible to in the future. Buy a health insurance plan that will cover the disease that you are likely to catch based on your medical history.
Exclusions Of Health Insurance
The following exclusions are usually not covered under health policy:
- Pre-existing diseases (time-bound)
- Health issues arising from drug abuse
- Self-inflicted injuries
- Non-allopathic treatments
- Cosmetic surgery (Except arising out of an accident)
- Injuries due to war
- Joint replacement surgeries
Be sure to read the list of exclusions mentioned in your health insurance policy for better clarity.
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