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From Monetary Misery to Financial Freedom for the Senior Citizens

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Published on August 4, 2021. EST READ TIME: 3 minutes

Traditionally in India, one typically toils for years in the quest for a comfortable life. Setting aside individual aspirations, a significant portion of our population works towards fulfilling their professional and social obligations before reaching the age of retirement. The so-called golden years. Hoping to reap the harvest of years of labour. However, as is oft repeated, it is imperative to have sound financial planning to truly enjoy the blissful days of post retirement. A regular stream of income is as important as ever, if not more so now, to be able to fulfill your impending life goals and desires.

Why Senior Citizens need to be financially independent?

Without the intent of trying to paint a macabre picture, it is a well established fact that post retirement life can become tougher financially. Especially, if proper financial planning hadn’t been done from early on. With no steady source of income, increasing expenses in the form ailments and medical bills, and sometimes lack of firm family support can turn these glory days filled with hardship and turmoil.

Several studies have shown that in present-day India more and more senior citizens are living on their own. Some studies have put the number as high as 70-75%. Among these, an alarmingly low number is actually deemed financially independent. This is as potent a case as any, towards advocating sound financial planning from an early stage for the years to come by.

While income sources become uncertain and inconsistent in the latter years of life, the financial needs and requirements tend to stay the same - in fact even go up. Gainful employment is also not as forthcoming. This disproportionate balance can be only offset by a robust financial plan kickstarted early on during your earning days.

Sensitizing the younger generation, and society as a whole, regarding the value of wisdom and experience that our senior citizens have to offer seems to be a challenging task. However, sound personal financial planning is not.

What are the benefits of a Senior Citizen Health Insurance Policy?

Rarely do medical emergencies announce themselves. It is only the prepared who are able to overcome them without too much financial strain.

Most statistics allude to the fact that one of the biggest avenues of expenses for senior citizens is healthcare. Statistics also mention that a large majority of our senior population do not feel financially independent and rely on pension as the primary source of income. Clearly, pension cannot be the only tool to deal with a multitude of ailments that are bound to occur with age. Let us examine some of the key benefits of having health insurance for senior citizens.

• ●Avoid an Unforeseen Financial Crisis

  The old adage, “health is wealth” should never be forgotten, regardless of age. However, in the case of senior citizens, it is all the more pertinent and pragmatic. With the right healthcare plan a majority of medical expenses can be comfortably managed thereby reducing the stress on your retirement corpus.

• ●Family Coverage

  Most   health insurance plans come with several family riders and top up options, covering multiple family members. With the right coverage you can avoid unannounced financial issues for self and for other members of your family as well. After all, money saved is money earned. Not only that, there are several types of plans available for your perusal. Based on specific needs, ailments, and pre-existing conditions a customized plan can be availed for each member of the family.

• ●Tax Benefits

Over and above all the aforementioned benefits, there is also the tax relief that insurance plans provide. Under Section 80D of the Income Tax Act, one can avail deductions on the premium paid with respect to purchasing health insurance for senior citizens. To be specific, upto Rs. 50,000 can be availed as tax deduction for people above the age of 60 and Rs. 25,000 for those below 60. This means a total of Rs. 1 Lakh deduction is permissible if the policy is taken for dependent parents who are above 60 and the individual is also above that age.

Conclusion

With the onset of the global pandemic early last year, Healthcare has never been as important as it is at the moment. Health insurance has been selling like hotcakes. Especially Health Insurance for Senior Citizens including Covid cover. HDFC ERGO’s health insurance plan for Senior Citizens is cognizant of the possible situations that could be of trouble to them and has designed plans that will cater to their specific needs.

Income sources and employment opportunities drastically reduce after turning 60, while the expenses and medical bills keep piling on. Hence, the takeaway here should be for all to carefully plan for your future financial independence and health expenses at an early age. For those who missed that boat, remember that it is never too late; and now is also a good time to start so as to be prepared for what the future might hold.

Disclaimer:  The above information is for illustrative purposes only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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