Health Insurance should not be taken before retirement ! – conflicting advice ?

POSTED BY SK ON January 28, 2014 4:43 pm COMMENTS (6)

Recently, I came across this page in valueresearchonline.

The advsie is contrary to what is suggested by most personal finance bloggers/advisors, but I personally agree with this given the non-transparent and sorry state of Health insurance at present. I invite opinion from JI readers.

6 replies on this article “Health Insurance should not be taken before retirement ! – conflicting advice ?”

  1. SK says:

    Thanks Divya, Vijay, Nikhil, Ashal and Manish. I agree that the employe provided policy, though with certain benefits like fixed premium , assured renewals etc are on eof the best things, but should not be relied upon as the only thing to fall back on.

    Agree with Ashal that the answer in valueresearchonline was for given contex.

  2. Hi SK , here is what some one who is expert in health insurance has to say (I mailed him asking for his opinion) and he says

    “Absolute nonsense. As Insurance becomes more scientific and you turn older….getting health insurance will become unaffordable or unviable.”

    Here are my comments –

    Health Insurance is a long term product, what you do today will determine how you get benefitted in future. Having a very strong product on your side today is like playing for a very long term .. So I would surely suggest get one . Any other health insurance (from employer, from bank) should be treated extra !


  3. ashalanshu says:

    Dear SK, please read the answer in the context, it has been offered. The person who asked is in PSU bank and is covered for unlimited expense on medical. It’s assumed that he ‘ll not leave his job and also the bank ‘ll not go bust. That’s why the advice was given that way.



  4. Nikhil Verma says:

    Dear SK,

    There are many things in this. Main concern is that if you get some major disease in between before retirement it could lead to a waiting period or permanent exclusion. For my mother I took health insurance policy from L&T last year and any expense for arthiritis is permanently excluded and ICICI Lombard & Religare declined the proposal itself. Imagine if L&T would have also declined then I would have left with the options of some Senior citizen policies which are not very good as they have lot of co-pay or exclusions.
    For private sector employees it may help when you are changing job.

  5. vijay says:

    I don’t agree with the premise of that article. Over the last few months livemint has come up with some very good articles on health insurance (and some ratings). For instance, you might find this very helpful –

    Based on the data presented in this article, you might be looking at a premium of 50-60k per annum. Typical hospitalization bill for things like heart bypass or an attack could be of the order of 2 lacs or so. I know people paying hefty amounts per month for 3-4 times dialysis per week. If the investment can consistently generate similar funds, I think health insurance might not be necessary. If not, I don’t see how one can manage those huge bills w/o affecting the finances, mental peace, and general atmosphere at home.

  6. divya.advisor says:

    If you have a health insurance that will cover you in between jobs or after retirement it makes no sense to buy before retirement else it does.
    Always remember there is a waiting period for certain diseases so make sure you have taken policy much in advance of your retirement to cover the waiting period. You should also pray that you do not catch a disease that will not allow you to join a medical insurance. e.g I know a person suffering from renal failure that no company is willing to insure.

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