Managing your finances especially during old age can be really tough for some people, that is why we at Helpee bring you the best advice on Finance for Seniors that might be for your benefit.
We have CA Mr. Ajai Kumar Mishra who will be telling us about managing money and how we can invest our recurring incomes.
Mr. Ajai has experience of 23 years in the field of Finance, and Accounts, he is currently practicing in Varanasi in the fields of Practitioner, Editing, and Consultancy.
Let us look at some tips with which we can help manage our income and make investments for a bigger run too.
Medical Health Insurance Plans for Seniors -
Many people worry about the healthcare plans for the elderly, whether or not they are available for them.
However, there are various healthcare plans made specifically for older people, but they are somewhat expensive, due to the higher risk of disease.
The best way one can go through investing in the healthcare plans for the elderly is to choose a plan before the person completes 61 years of age.
The benefit you get from choosing this plan is that after 61 years of age, insurance companies provide you with a co-payment option, (which can be disabled if you don’t want it), the option states that whatever amount is due, 20% of it will be borne by the insurance company, but apart from this option the plan comes with 100% claim by the company.
If you buy an insurance plan of ₹5Lakhs then you get an option of capping or non-capping for individuals, if you take the capping option, then you can get the claim of a specified amount, but, it is better to go for the non-capping option as with that you can get the insured amount you want to.
With capping, there is less flexibility both for individuals or with their spouse, and non-capping has more flexibility in both.
Growing money for Pensioners -
For the growth of the money, aka savings, there are plenty of options for investment all depending upon the amount of risk the owner can take.
For options, one might go through fixed deposits (but the return one will get is quite low), NSC (the interest rate of this was fairly good earlier but has reduced now) however, there is quite an interesting plan you can opt for with NSC, of deposing an additional income for a period of 10.5 years, and after that period you will get doubled the income.
The last option is the Senior Citizen Savings Scheme, affiliated with the Government of India, wherein the interest rate is higher than the previous two, but it comes with a limitation of putting ₹15lakhs only.
Investing in Crypto Currency or Stock -
One of the digital benefits most people get nowadays is by investing in cryptocurrencies, bitcoin, or the stock market, but is this feasible for the elderly too?
Yes, senior citizens can invest in the stock, but again it comes with some risks.
Investments taken under the guidance of an expert are a feasible choice, however, trading is not at all recommended for senior citizens.
Cryptocurrency is also not advisable for the elderly as it is complicated, and a lot of money can be lost.
Tackling Frauds or Criminals -
Everyone nowadays is getting targeted by scam companies where we end up losing all of the money.
The major age group that gets targeted are senior citizens, and with them losing up all the money, it becomes a worrisome topic.
The best ways to ensure that this doesn’t happen to you, especially the elderly, is to always secure your ID and password, do not give it to anyone else, do not give your OTPs without having the proper knowledge as to where it is required, it is recommended to use a safe domain for all your transactions.
You should follow all these steps as these are the ones hackers gain benefits too.
Before making any investments, read the whole document carefully twice or thrice, or before purchasing anything, always go through the term policies, this is the best way to get rid of it.
To conclude, there are several medical health insurances made especially for the seniors where one can invest for a better future and gain benefits.
Earlier insurance companies were providing the insurance plans for just 1 year, but nowadays every company has extended their plans for 2, 3, or maybe 4 years ahead.
One thing to keep in mind is that investments should be made for long-term usage, don’t go for daily or recurring income, as it is not recommended and the higher interest rate would only be possible in long-term investments.
One should plan their retirement well in advance, in order to obtain higher income with benefits.
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