BANGALORE: The life expectancy has gone up in India with the advancement of the medical sciences. A large number of people are living for longer years after their retirement from services. But, except government sector, most of them do not have any provision for the pension. Hence, they are facing several problems in the post-retirement age as the medical expenses also go up drastically along with the monthly expenditure due to the inflation.

A proper pre-retirement planning is required for leading a peaceful post-retirement life. There are eight important points which all need to follow in this regard.

1. Critical illness cover for self and spouse

The risk of getting a critical illness increases with age. Conditions like heart attack, stroke, cancer, paralysis among others are covered under critical illness policies. The insured is paid a lump sum amount, irrespective of hospitalization, unlike a health insurance policy.

This is where critical illness policies differ from health insurance covers, thus explaining the need to have both the types of policies. It is therefore recommended to have a critical illness cover in place for both self and spouse before retirement.