Healthcare costs have been rising exponentially across the globe. Many policy holders are not happy as there is lot of gap in health insurance- expectations and reality. These costs alone have pushed around 55 million Indians below the poverty line. To make healthcare affordable, the Government of India has announced the Ayushman Bharat scheme to provide cover of Rs 5,00,000/- per family per year to 100 million vulnerable families. One can also buy a health insurance plan from any general insurance company, for a fixed cover amount ( say Rs 5 lakh or for Rs 10 lakh).

There is a mistaken belief among many people that health insurance is only for old people. Further, many Indians consider Insurance is not necessary. However, medical or health emergencies are not age bound. Every earning person should buy health insurance. In the absence of an insurance policy, a single medical emergency can exhaust all your savings, and in some cases even exhaust your emergency fund, which in turn would have a cascading effect on the quality of your life.

A few points must be kept in mind regarding health insurance. Do not rely solely on insurance cover from your employer as the amount may be inadequate. Moreover, this cover ceases once you move out or retire. Buy health insurance early as the premium tends to get higher with age. Decide on the health policy based on your requirements and that of your family. Opt for floater policies if you have dependents.

Due to rising healthcare costs and with the incidence of surging critical medical ailments, many times the health insurance cover taken by a person may not be sufficient to meet all the health-related exigencies. The National Health Accounts released in October 2017 stated that Total Health Expenditure in India was around Rs 4,832.59 billion in 2014-15. Of this, 62.6 per cent or Rs 3,024.25 billion was out-of-pocket expenses borne by households.

It is, therefore, wiser to be prepared for unforeseen medical contingencies by setting up a separate health corpus. Apart from providing you with the ability to withstand escalating medical expenses, a dedicated financial plan for health will also ensure financial independence in old age. Post-retirement, 90 per cent of Indians rely on their savings to meet their expenses. Even if you take all possible measures to stay fit and healthy, a few medical conditions are common with advancing age. If your savings are not sufficient to meet these costs, you may have to rely on your children for financial support. Planning your finances well will ensure that you live with dignity and independence even after retirement. Below are a few steps you can take to ensure that you never have to compromise on your healthcare needs.