I am sure most of the users are fully aware of Health Insurance. I found this article interesting for the following points:-
- Health insurance alone is not sufficient for old age. You need to have a separate healthcare contingency corpus too.
- Remember, hospitalisation is a low (not zero) probability event. Instead, more probable is the onset of regular, on-going healthcare expenses that old people need to spend money on. The cost of medicines, diagnostics and regular consultations for lifestyle and chronic diseases (like diabetes, thyroid, etc.) in itself can be a lot.
- it is for such scenarios, that having a Health Contingency Fund is advised. It’s like having a second level of buffer in your health portfolio. And the best part is that it can also be used in case the hospitalisation bill exceeds your health insurance cover.
- To build a Healthcare Contingency Corpus, start saving a certain sum* of money every month.
- Many would be tempted to ‘consider’ their retirement corpus as their health contingency fund too. That’s a possibility. But remember that your retirement corpus is there to help you maintain a chosen standard of living in retired life.