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How to Plan for Health Insurance With a Fixed Salary When You Retire

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Created on
July 25, 2023


What’s Inside

As individuals approach retirement, it becomes crucial to consider various aspects of financial planning, including healthcare coverage. In India, retirees often rely on fixed salaries or pension amounts, making it essential to explore health insurance options that provide adequate coverage while aligning with their budgetary constraints.

Exploring Health Insurance Options

Retirees in India have several health insurance options tailored to their specific needs. These options include:

A. Individual Health Insurance

Individual health insurance policies offer coverage to retirees on a personal basis. These policies typically cover medical expenses, hospitalisation costs, and sometimes even pre and post-hospitalization expenses.

B. Family Floater Health Insurance

Family floater health insurance plans provide coverage to the entire family under a single policy. This option allows retirees to extend coverage to their spouse, children, and sometimes even dependent parents.

C. Senior Citizen Health Insurance

Several insurance companies offer specific health insurance plans for senior citizens. These plans cater to the unique healthcare needs of retirees and often include benefits such as coverage for pre-existing illnesses, regular health check-ups, and higher sum insured options.

Understanding Deductible Options in Health Insurance

A deductible is an amount that the insured individual must pay before the health insurance policy comes into effect. It is essential to understand the concept of deductibles while evaluating health insurance options.

  • Voluntary Deductibles

Voluntary deductibles allow policyholders to choose a specific amount that they are willing to pay before the insurance coverage kicks in. 

  • Compulsory Deductibles

Certain health insurance policies may have compulsory deductibles, which are predetermined amounts set by the insurance provider. These deductibles must be paid by the policyholder before the insurer starts covering the medical expenses.

Health Insurance Plans for Senior Citizens

While you are thinking about what are my health insurance options, here are some health insurance plans available for you offered by Indian financial institutions:

Senior Citizens Health Insurance Plans

Entry Age

Sum Insured (Rs)

Aditya Birla Activ Care Plan

55-80 years

Standard: 3 lakhs to 10 lakhs

Classic: 3 lakhs to 10 lakhs

Premier: 5 lakhs to 25 lakhs

Bajaj Allianz Silver Health Plan

46-80 years

Plan A: 50,000 to 5 lakhs

Plan B: 3 lakhs to 10 lakhs

Care Senior Health Advantage Plan

60 years onwards

5 lakhs, 10 lakhs

Cholamandalam Flexi Health Supreme Plan

18-75 years

Basic: 5 lakhs to 25 lakhs

Plus: 5 lakhs to 25 lakhs

Premiere: 30 lakhs to 5 crores

Kotak Mahindra Health Premier Plan

18-65 years

Standard: 2 lakhs

Advantage: 3 lakhs to 10 lakhs

Edge: 5 lakhs to 20 lakhs

Elite: 10 lakhs to 25 lakhs

Absolute: 25 lakhs to 2 crores

360: 2 lakhs to 2 crores

Total: 2 lakhs to 2 crores

SBI Super Health Insurance Plan

18 years onwards

Elite: 3 lakhs to 25 lakhs

Premier: 3 lakhs to 10 lakhs

Platinum: 10 lakhs to 50 lakhs

Platinum Infinite: 50 lakhs to 2 crores

Tata AIG MediCare Premier Plan

18-65 years

5 lakhs to 3 crores

Secure Retirement: Choosing Health Insurance and Smart Investments for Peace of Mind

In conclusion, retirees must carefully assess their health insurance options to ensure adequate coverage within their fixed salary constraints. Understanding deductibles, exploring various health insurance plans, and considering factors such as premium affordability, coverage, and policy terms are vital in making the right choice. By planning for retirement and securing suitable health insurance, retirees can enjoy peace of mind and financial protection in their golden years.

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Frequently Asked Questions

1. In which plan is retirement income fixed?

In a defined benefit pension plan, retirement income is fixed. This type of plan guarantees a specific amount of income based on factors such as salary, years of service, and age at retirement.

2. What is the best option for a retirement plan?

The best option for a retirement plan depends on individual circumstances and goals. Some popular options include employer-sponsored plans like 401(k) or 403(b) plans, individual retirement accounts (IRAs), annuities, and investing in a diversified portfolio of stocks, bonds, and other assets.

3. What is retirement planning insurance?

Retirement planning insurance typically refers to long-term care insurance, which provides coverage for expenses related to healthcare and assistance with daily living activities during retirement years. 

4. How do I generate a fixed income in retirement?

Retirees can generate fixed income through Social Security benefits, pension payments, annuities, bonds, dividend-paying stocks, and rental property investments. These avenues provide stability and regular income during retirement.

5. What is the 7 per cent rule for retirement?

The "7 per cent rule" for retirement is a general guideline suggesting that retirees can withdraw approximately 7% of their retirement savings annually without depleting their funds too quickly.


Investment and securities are subject to market risks. Please read all the related documents carefully before investing. The contents of this article are for informational purposes only, and not to be taken as a recommendation to buy or sell securities, mutual funds, or any other financial products.
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