Navigating Healthcare Costs: 3 Essential Tips for a Stress-Free Retirement

When one retires, one may look forward to a period of comparative rest and relaxation. The absence of work pressures, indulging in hobbies, and spending time with loved ones… may be the usual images one associates with retirement. While these experiences may be indeed true in most cases, one thing people may overlook when carrying out financial planning for their retirement is their health. As one enters their late 50s and 60s, the body’s immune system may weaken, bringing in its wake an increased vulnerability to diseases. To deal with these health issues in a stress-free manner, one should plan early accordingly.

How to Manage Healthcare Costs for One’s Retirement

Here are three tips to ensure financial preparedness for health-related expenses during your golden years:

Have a solid health insurance plan 

Even though you may have enough savings to last you a lifetime, there is no saying when a medical emergency may strike and take away all the savings. Hence, there is no replacement for a health insurance plan. Health insurance can play an important role in mitigating health-related financial stress during retirement. You must choose an appropriate plan adequately covering all the major expenses you may likely incur. This reduces the chances of you having to dip into your savings. Let’s look at some important factors you must look for when opting for retirement health insurance: a. Extensive coverage The coverage of a health insurance plan ultimately determines how useful it will be for you. Hence, choose a plan that offers extensive coverage. Look for coverage related to Ayurveda and Homoeopathy expenses, daycare procedures, road ambulance charges, and so on.* b. Comprehensive cashless treatment For the uninitiated, cashless treatment refers to a hospitalisation process where the insurer directly takes care of the payment. Cashless treatment allows you to access the medical care you need without having to pay large amounts of cash up-front.* With Bajaj Allianz Health Insurance, you can claim cashless treatment at an extensive list of network hospitals and recover worry-free.* Claims are subject to terms and conditions set forth under health insurance policy. c. Affordable premium If you are going to have health insurance during your retirement, you need to make sure its premiums are affordable. You may not have a steady salary during your retirement, so do factor that in when choosing a plan. Additionally, the older the insured person is, the higher the premium may be. Hence, select your plan and coverage accordingly. You can also use online tools, such as the health insurance calculator to get a better idea of the premium for different ages and coverage options.

Break major costs into smaller ones 

One way to manage healthcare costs during your retirement years is to break them down into smaller expenses. Create a monthly budget by listing necessary medical necessities for yourself and family members. This may include medications, routine check-ups, doctor visits, specialist visits, and so on. By keeping a tab on these costs, you can evaluate your expenditure and see if there are any areas you can cut down on. For instance, most health insurance plans have a preventive check-up feature, which allows insured members to receive free check-ups after every specified interval. With this, you can know any potential diagnoses early on and get the required treatment promptly.* Claims are subject to terms and conditions set forth under health insurance policy.

Make preparations for unforeseen medical expenses 

Your health insurance plan and retirement savings may allow you to handle regular medical needs. However, it is important to prepare for unforeseen, worst-case scenarios as well. If you or your loved ones were to unfortunately be diagnosed with cancer or may require a major surgery like open chest CABG, the funds may fall short. While health insurance could help to an extent, the frequent treatment needed for diseases like cancer, or the high costs required for major surgeries, may need additional financial support. Hence, consider opting for health-related general insurance plans like critical illness insurance. This type of plan provides a lump-sum payout in case the insured person is diagnosed with a life-threatening illness or has to undergo life-saving surgery.* The payout can be used in any manner you wish. If you prefer to travel to a foreign country for treatment, you can use the payout for the travel fees as well as the medical expenses. Claims are subject to terms and conditions set forth under health insurance policy. Reach out to your insurer when you renew your health insurance policy, to check what kind of health-related general insurance plans may be suitable for you.

Conclusion

While health insurance and other preventive measures can help deal with unpredictable events when they arise, you must make efforts to live a healthier lifestyle, too. Incorporating proper nutrition and having regular exercise can go a long way in helping you have a healthier, stronger body and mind. With a healthy lifestyle and financial preparedness, you can spend your retirement years with the utmost peace of mind.   *Standard T&C apply. Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.