These are a set of queries raised by ET Wealth readers, which have been answered by our panel of experts.

I am 45, married, with a school-going child and dependent parents. I have employer health insurance of Rs.5 lakh and an additional personal policy of Rs.3 lakh. Given rising hospitalisation costs and the possibility of job changes, how can I assess whether this cover is adequate? Should I rely primarily on employer insurance or build a larger personal cover?

Sarbvir Singh, Joint Group CEO, PB Fintech: With vulnerable elderly members and a dependent family, a total sum insured of Rs.8 lakh simply cannot battle today’s medical realities. In metros, hospital bills have risen sharply, and a single serious illness, especially for ageing parents, can wipe out this cover sooner than one expects. Employer-provided health insurance comes with a low sum insured, changing terms and, most importantly, uncertainty in case of a job change or a career break. Thus, building a large personal health policy is non-negotiable, particularly in high-inflation urban markets. Consider at least a Rs.1 crore cover for you and your immediate family, and a separate Rs.25 lakh or more for parents. For your own policy, look for OPD benefits and coverage for advanced treatments. For senior citizens, look for no room-rent capping, Day-1 pre-existing disease coverage and domiciliary treatment.

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What is a realistic way to calculate one’s retirement corpus given the longer life expectancy, rising post-retirement medical expenses, and patchy insurance covers? Which assumptions do most Indians still go wrong with while making calculations?

Dilshad Billimoria, MD & Chief Financial Planner, Dilzer Consultants:

Covering outpatient department (OPD) expenses at retirement is crucial as these costs tend to be frequent and unavoidable, and remain largely uncovered by most health insurance policies.

We recommend estimating the current costs of visiting doctors, routine consultations, regular health check-ups, emergency hospitalisation, and other out-of-pocket medical expenses for yourself, your spouse, and dependent parents from the retirement start date, and treating these as recurring annual costs.

Since OPD and preventive care expenses typically rise steadily with age, factoring in medical inflation is essential to avoid underestimating the required corpus. For example, if the yearly estimate for doctors’ visits and health check-ups is Rs.5 lakh per annum, and this amount is required on an inflation-adjusted basis from 60 to, say, 90 years, a corpus of Rs.1,10,39,000 would need to be set aside.

This can be either as a lump sum or through a mutual fund systematic investment plan (SIP) of approximately Rs.53,000 per month for a 50-year-old retiring in 10 years, with expenses commencing from 60 and lasting till 90.

Our panel of experts will answer questions related to any aspect of personal finance. If you have a query, mail it to us right away. Email ID: etwealth@timesgroup.com