Page 27 - Banking Finance July 2024

ARTICLE

On the Priority List, it should be an exhaustive Health 4. Pension with Return of Purchase Price ( leaving a corpus
Insurance Policy which will extend the following benefits - for your next generation).
1. Coverage for pre and post hospitalisation expenses,

2. Hospital room rent, Some other options are also available but the above four
options are popular.
3. Day care procedure,
4. Cover for a wide range of diseases, Even if you enjoy a good Pension from your previous employer
5. Domiciliary treatments, or from other sources, then also you can purchase a suitable
pension plan to substitute your needs for a better standard
Please keep a watch on the following aspects - of living.
1. To and fro Ambulance service,
NEVER FORGET - PENSION IS YOUR THAT CHILD WHO WILL
2. Free health checkup at periodical intervals,
TAKE CARE OF YOUR HEALTH EXPENSES AND WILL ENSURE
3. Alternative treatments, A BETTER STANDARD OF LIVING ALONGWITH MUCH

4. Add on covers. NEEDED PEACE OF MIND.
5. Cashless Claim Process and Network of Hospitals.
For other scopes of monthly schemes, our next destination
is the years old n our very own - INDIAN POST OFFICE.
Nowadays Portability of health insurance policy is allowed
Ofcourse the Top scheme is Senior Citizen Savings Scheme -
to transfer from one insurer to another. For better covers, with a tenure of 5 years extendable by 3 more years with
lower premium or better service, a senior citizen may take
8.2 rate of return for citizens aged 60 years and above.
the help of portability. And never forget to include your
spouse in the Family Floater policy. Sr CITIZENS are
The maximum allowable investment limit is Rs 30 lac which
requested to check the following details before accepting a will pay you quarterly interest. It is safe investment totally.
comprehensive health plan -
1. Initial waiting period,( no cover days- 30 days eg)
Next scheme of Post Office in the Suitability Ranking is PO
2. Disease specific waiting period, Monthly Income Scheme which is a scheme for 5 years
3. Bills covered, extendable by 5 more years. Citizen from age 55 years may
purchase it. Maximum investible amount is Rs 9lac and the
4. Co-pay(policyholder has to bear a certain amount of
rate of return is 7.4%. Post Office announces the rates of
total bill),
return of all small savings schemes on a quarterly basis.
5. Doctor consultation fee.
The next KID OF THE BLOCK is National Pension Scheme(
If you want to manage with a low cost affair, you may opt
NPS). You can get income tax exemption upto Rs 50000 in a
for Ayushman Bharat Scheme ( Central Govt scheme) or year as per Sec 80CCD or upto 10% of pay( Basic+DA) with
Sashthya Sathi Prakalpa ( State Govt scheme). maximum limit Rs 1.5lac. The minimum tenure of the
scheme is 10 years, so a senior citizen of 60 yrs may continue
The next step of Retirement Solution is to purchase a good the scheme upto 70 yrs Max. You can withdraw money after
Pension Plan. If you are entitled to a handsome pension from
your previous employer, it is fine. Otherwise, you should 3 years from the date of start of the scheme upto a limit of
25% of your accumulated amount. You can withdraw money
purchase a good Pension policy from a reputed Insurance from the account on the pretext of home loan, treatment
company like LIC or Tata AIA or ICICI Prudential or any other
of illness or kids marriage. At the close of the scheme, 60%
company of your choice to manage your monthly affairs. The of the accumulated will be paid in lumpsum and on the rest
options available to you from a pension plan - 40% amount, annuities will be paid on monthly, quarterly,
1. Pension for whole life,
half yearly and yearly basis as per option given. NPS holds
2. Pension for joint life (2nd life will get pension after the an immense value for private sector employees and is
death of 1st life). portable across jobs and locations. It is suitable for people
3. Increasing pension (to neutralize inflation), with low risk appetite and basically a Systematic Investment

BANKING FINANCE | JULY | 2024 | 25