My salary is 60k pm and I am reaching 50 years of age, I am planning to take a mediclaim policy. Can you please help, which policy and how much cover should I look for me and my wife?

Ans: At the age of 73, it's still possible to obtain medical health insurance coverage, although it may come with certain limitations and higher premiums due to your age. Here are some options you can explore:

Senior Citizen Health Insurance Policies: Many insurance companies offer specialized health insurance plans specifically designed for senior citizens. These policies typically provide coverage for hospitalization expenses, pre-existing diseases, and other medical expenses incurred due to illnesses or accidents. While premiums may be higher compared to regular health insurance plans, senior citizen policies offer comprehensive coverage tailored to the healthcare needs of older individuals.

Government Health Insurance Schemes: Some government-sponsored health insurance schemes cater to senior citizens and provide affordable healthcare coverage. For example, in India, schemes like the Pradhan Mantri Jan Arogya Yojana (PMJAY) or state-specific health insurance schemes may offer coverage for hospitalization expenses and treatment for certain illnesses.

Group Health Insurance: If you have any affiliation with professional or social organizations, you may be eligible to join group health insurance schemes offered by these organizations. Group insurance plans often provide coverage at a lower cost compared to individual policies and may have less stringent eligibility criteria.

Family Floater Plans: If you have family members who are younger and in good health, consider opting for a family floater health insurance plan that covers you along with your family members. Family floater plans offer shared coverage for the entire family at a relatively lower premium compared to individual policies.

Pre-existing Disease Coverage: Since you may have pre-existing medical conditions at the age of 73, it's essential to choose a health insurance policy that offers coverage for pre-existing diseases. Look for policies that provide coverage for pre-existing conditions after a waiting period, as this can help manage your healthcare expenses effectively.

Before purchasing a health insurance policy, carefully review the coverage features, exclusions, waiting periods, premium costs, and claim settlement process. Consider consulting with an insurance advisor or agent who can help you compare different policies and choose the one that best suits your healthcare needs and budget.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: I am sorry for your loss. I understand this is a tough time financially and you're juggling multiple priorities. Here's why a mediclaim policy for your family might be a good idea:

• Peace of mind: Medical emergencies are unpredictable. A mediclaim policy would provide financial cover beyond your company insurance, especially if the hospitalisation costs exceed 10 lakh.
• Security for children's future: Medical bills can derail your savings plan for their education. A mediclaim would ensure their education funds remain untouched.

Finding the right mediclaim policy:

• Family floater plan: Consider a family floater plan where the sum insured is shared amongst you and your children. This is usually cheaper than individual plans.
• Start with a reasonable sum insured: You can start with a sum insured of 5-7 lakhs on the family floater plan. This can be increased later.
• Check for exclusions: Carefully review the policy document for exclusions pre-existing conditions, specific procedures etc.

Balancing cost and coverage:

• Compare quotes online: Use online insurance aggregators to compare quotes from different insurers. They can help you find plans that fit your budget.
• Company vs Individual plan: While your company plan offers some coverage, a personal mediclaim can provide wider coverage and may not be tied to your employment.

Don't forget:

• Disclose pre-existing conditions: Be upfront about any pre-existing conditions to avoid claim rejections.
• Renew on time: Timely renewal ensures uninterrupted coverage.

Remember, a mediclaim policy is an investment in your family's well-being. Weigh the cost of the premium against the potential financial burden of medical bills.

Ans: Health and term insurance are crucial for financial security. Let's explore your options.

Understanding Health Insurance
Health insurance is vital for protecting your family's finances. It covers medical expenses and ensures you don't dip into savings. For a family of three, wide coverage is essential.

Family vs. Individual Health Insurance
Family Floater Policy
A family floater policy covers all members under one sum insured. This means if one member uses the coverage, the remaining sum is available for others. It’s cost-effective and easy to manage.

Individual Health Policy
An individual policy covers each family member separately. This ensures each person has a dedicated sum insured. While it can be more expensive, it guarantees full coverage for everyone.

Choosing the Right Health Insurance
Coverage Amount
For a family of three, consider a sum insured of at least Rs 10 lakhs. This covers hospitalisation, surgeries, and other medical expenses.

Comprehensive Coverage
Look for policies that cover pre and post-hospitalisation, ambulance charges, daycare treatments, and critical illnesses. Comprehensive policies provide peace of mind.

Network Hospitals
Check if the insurer has a wide network of hospitals, especially near your residence. Cashless treatment facilities make hospitalisation less stressful.

No Claim Bonus
Choose a policy that offers a No Claim Bonus. This increases your sum insured without additional premiums if you don't make any claims.

Additional Benefits to Consider
Maternity Coverage
If you plan to expand your family, consider a policy with maternity coverage. It should cover prenatal and postnatal expenses, delivery charges, and newborn care.

Preventive Health Check-ups
Some policies offer free annual health check-ups. This helps in early detection and prevention of diseases.

Critical Illness Rider
Critical illnesses can drain finances quickly. A rider covers diseases like cancer, heart attack, and stroke. It provides a lump sum amount on diagnosis, helping with treatment costs.

Term Insurance: Protecting Your Family’s Future
Importance of Term Insurance
Term insurance provides financial security to your family in your absence. It pays a lump sum to your beneficiaries if something happens to you. It's essential for safeguarding your family's future.

Choosing the Right Term Insurance
Sum Assured
Choose a sum assured that covers your family's expenses, outstanding loans, and future goals. Typically, 10-15 times your annual income is recommended.

Policy Tenure
Select a tenure that covers you until your major financial obligations are met. Ideally, this should be until your child's education or marriage is complete.

Riders for Enhanced Protection
Consider adding riders like accidental death, disability, and critical illness. These enhance the coverage and provide additional security.

Benefits of Mutual Funds
Mutual funds are excellent for wealth creation. They offer diversification, professional management, and potential for high returns.

Types of Mutual Funds
Equity Funds
Invest primarily in stocks. They offer high returns but come with higher risk. Suitable for long-term goals.

Debt Funds
Invest in fixed income securities like bonds. They are less risky and provide stable returns. Ideal for short to medium-term goals.

Hybrid Funds
Invest in both equity and debt. They balance risk and return, making them suitable for moderate risk-takers.

Power of Compounding
Investing in mutual funds harnesses the power of compounding. Reinvesting returns over time leads to exponential growth. Starting early maximises this benefit.

Disadvantages of Index Funds
Passive Management
Index funds are passively managed. They replicate a market index and do not attempt to outperform it. This limits potential returns.

No Active Strategy
Index funds lack active management strategies. They cannot adjust to market changes, potentially missing opportunities to maximise returns.

Benefits of Actively Managed Funds
Professional Management
Actively managed funds have experienced managers who make investment decisions. They aim to outperform the market by selecting high-potential stocks.

Flexibility
Managers can adjust portfolios based on market conditions. This flexibility can enhance returns and reduce risk.

Disadvantages of Direct Funds
Lack of Guidance
Direct funds require investors to manage their investments. Without professional guidance, making informed decisions can be challenging.

Limited Support
Direct investors may not have access to the same level of support as those using a Certified Financial Planner. This can impact portfolio performance.

Benefits of Investing Through a CFP
Expert Advice
CFPs provide expert advice tailored to your financial goals. They help you choose the right funds and create a diversified portfolio.

Regular Monitoring
CFPs monitor your investments regularly. They make adjustments based on market conditions and your changing needs.

Comprehensive Financial Planning
CFPs offer comprehensive financial planning. They consider your entire financial situation and create a plan to achieve your goals.

Final Insights
Choosing the right health and term insurance is crucial for your family's financial security. A family floater health policy is cost-effective and provides wide coverage. Ensure it has a sufficient sum insured and comprehensive coverage.

Term insurance safeguards your family's future. Choose a sum assured that covers your expenses and future goals. Adding riders enhances protection.

Investing in mutual funds is an excellent way to grow your wealth. Consider equity, debt, and hybrid funds based on your risk tolerance and goals. Actively managed funds offer professional management and flexibility.

Investing through a Certified Financial Planner provides expert advice and regular monitoring. They help you create a diversified portfolio and achieve your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in