Look At Exclusions Before Buying Health Insurance For Seniors

Sundar Bhan, Email

Q. Which is the better way to invest in gold—gold exchange -traded funds(ETFs) or digital gold in India?

A. Gold ETFs and digital gold both have pros and cons. Gold ETFs are traded on stock exchanges and offer high liquidity, lower costs, and follow Securities and Exchange Board of India (Sebi) regulation, but they come with market risks and management fees. They are best for long-term investments.

Digital Gold allows buying gold in small amounts online with secure storage and no making charges. However, it has slightly lower liquidity and variable pricing across providers. It is suitable for small, regular investments.

Ultimately, the choice depends on investment goals, liquidity preference, and investment amount.

Hina Shah, CFP®, Financial Coach & Mutual Fund Distributor

Menka Rawat, Email

I recently started working after my son started going to school. I have an employer-provided insurance cover of Rs 3 lakh and a family floater with my husband worth Rs 5 lakh. I want an insurance specifically for my parents, both of whom will be retiring in the next 2-3 years. What kind of insurance cover should I consider?

First, you need to assess the health conditions, financial needs, medical history, or any type of hereditary critical illness of your parents. Compare senior citizen health policies on parameters such as coverage, premiums, and co-payment. Look at the exclusions of different policies.

There are many policies available from different companies specifically designed for senior citizens. These offer extensive coverage for seniors’ medical needs with existing diseases along with various optional coverages available. While a few of them offer high sum insured with no sub-limits, others have co-payment clauses.

Consulting a professional insurance advisor or financial planner is always advisable to get a personalised solution for your requirement. Also, you may consider including your son in the family floater with your husband.

Hina Shah CFP®, Financial Coach and Mutual Fund Distributor

Minakshi Chandran, Email

I retired a few months ago and received Rs 22 lakh from Employees’ Provident Fund (EPF). I want to invest this retirement corpus but I’m now sure where. I already have investments in mutual funds and shares worth about Rs 25 lakh. My husband, also a retiree, has a total corpus of around Rs 55 lakh. He has invested Rs 15 lakh in Senior Citizens Savings Scheme and Rs 20 lakh in bank fixed deposits (FDs), and the rest in a couple of equity and debt mutual funds. Please suggest us about planning our further investments?

A balanced approach is ideal. Consider investing in hybrid mutual funds like balanced advantage or aggressive hybrid funds for better long-term returns.

Opt for a systematic withdrawal plan (SWP) option from hybrid funds, with a 6 per cent interest rate, yielding Rs 11,000 per month for regular income.

Since your husband has Rs 20 lakh in FDs, limit any additional FD exposure to Rs 2-3 lakh and park some funds in liquid mutual funds for emergencies. Also, keep Rs 2-3 lakh in savings account or flexi FD for immediate liquidity. You may consult a certified financial planner to better tailor your investment strategy.

Suhel Chander CFP®, Co-founder, Handholding Financials

Rajiv Prakash, Email

I am utilising the full benefit of Rs 1.5 lakh available under Section 80C through my home loan, insurance premiums and contribution to the EPF. Should I still consider opening a Public Provident Fund (PPF) account?

Yes, you can invest up to Rs 1.5 lakh annually in PPF, but it will not provide additional tax benefits under Section 80C of the Income-tax Act, 1961 . Even If the tax benefit is capped, PPF remains a lucrative option due to its tax-free interest and maturity proceeds.

The maximum you can deposit in a PPF account in a financial year is Rs 1.5 lakh, regardless of whether you’re claiming it under Section 80C or not.

Uma S. Chander, CFP®, Handholding Financials

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