If your employer provides full health care expenses, buying health insurance before you retire is a waste of money…
24-Jan-2014 •Research Desk
I am working in a public sector bank which provides medical facilities for self and family. But this facility will not be there after my retirement which is 22 years away. What should be my approach for medical expenses that can occur post retirement?
Since you are in a public sector bank, we are assuming that your employer will pay for medical care without any limit. Clearly, spending money on health insurance is a waste of money for you.
As far as the question of post-retirement medical expenses go, you should buy health insurance only when you need it. In India, there's no advantage in buying long-term health insurance. You will still pay just as much when you get old. Moreover, health insurance in India is still evolving and it's entirely possible that you will have much better options 22 years later.
You will do much better if for 22 years, you keep investing the money you would waste on health insurance.