Healthcare Inflation and Retirement
Healthcare costs in India rise at roughly 12–14% per year — nearly double general inflation — making it the most commonly underestimated line item in retirement planning. This guide explains why healthcare needs its own corpus calculation (using a higher inflation rate), how to structure health insurance using a base policy plus super top-up for cost-efficient large cover, which features matter most for seniors (restoration benefit, no-claim bonus, portability, and pre-existing disease waiting periods — making early purchase essential), the role of critical illness cover as a lump-sum supplement, and the Ayushman Bharat PM-JAY Vaya Vandana Yojana, which extends ₹5 lakh/year coverage to all citizens aged 70+ regardless of income — a valuable safety net, but not a substitute for private cover and dedicated planning.