Healthcare Inflation in India is INSANE!
Hello,
Whatcha up to today?
I'm just laying back to relax and well, I am hanging in there. I have a HUGE, life-altering announcement to make and guess what? It’s been my best-kept secret for a while now and if you’re reading this before 6 pm you’re probably one of the first few people to know! Read on till the end to know what it is!
What I was up to: Sayali & I had our first big win of the year at Creators United - we were elected to be the Fintastic Finance Creator of the Year! Winning on public voting, especially over such an esteemed panel of competition is what makes this so much more special to us and we’re so honoured, happy, and grateful for each one of you :) Sayali collected the award and I couldn’t be there but the FOMO I had was just too much! 🥺😭
Market ka haal: It’s great that the markets are back to 61,000 levels despite FPI outflows! Foreign portfolio investors (FPIs) have started the new year with a bearish view of India. In less than three weeks, on a net basis, these fund managers have taken out nearly $2.1 billion (over Rs 17,000 crore) from the domestic stock market. In contrast, despite muted FPI activity in December, net inflow into Indian stocks was at about Rs 47,000 crore. FPI ownership of Indian equities is at a nine-year low, so there may not be any significant FPI outflows in 2023.
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My big reveal: There’s been a cute little bun slow-cooking in the oven for about nine months now, my husband and I are expecting to welcome our baby anytime soon!! Well, some of you might have guessed it after all that maternity finance planning content we’ve been posting lately, so kudos if you did, you were right!! FinCocktail has another mini-mascot joining Simbaa!
Humara Gyaan: Since we have been going through this massive change in our life, we have had to look over our finances, and something caught our eye: Healthcare inflation in India is rising at 18-20 per cent annually. The average cost of childbirth in Tier 1 cities and metros in India at private hospitals ranges between Rs 45,000 and Rs 2,00,000, depending on the level of complications.
THAT’S INSANE! 🤯🤯🤯
Over and above this, there's gonna be a whole bunch of recurring costs for childcare once the baby is home. It is important to start planning early and start investing beforehand to meet these expenses.
Maternity Expenses
If you plan to have a baby in the next 3 years, start considering investing at least 7-8k/month in short-term income funds, debt funds or something similar!
Maternity Insurance
There are quite a few health insurance providers like Aditya Birla, Bajaj Allianz, Bharti AXA etc, which do provide medical insurance that covers all costs of a pregnancy, including those associated with normal and C-section deliveries
Usually, maternity insurance plans offer coverage for maternity expenses after a waiting period of 9 months to 6 years.
The sum assured may vary from policy to policy, with most policies only covering amounts upto Rs.50k for upto 2 children! So it's important to choose the policy wisely and well ahead of time!
Another option is to opt for a maternity cover through your corporate health insurance plan in case you are a salaried employee. Check with your HR & insurance company, because that tends to be easier and provides better coverage!
Investments For The Future
For the child’s education once can consider options like good quality equity mutual funds and ensure you have term insurance with sufficient coverage to meet your child’s future
Check out child’s saving plans, that gives you enough of a corpus for potential educational expenses, health emergencies and other miscellaneous costs while keeping into account inflation!
Consider the Sukanya Samriddhi Scheme if you have a girl child. Deposits are of Rs. 1000 to Rs 1.5 Lakh can be invested in this scheme every year and can be made till the girl child attains 14 years, the maturity period would be 21 years from the day of opening of account. The rate of interest is 8.6% that is compounded yearly. The scheme also allows partial withdrawals after the child attains 18 years of age.
Make investments in gold, RDs, PPF!
Enough money talk! I wish and hope you have a great weekend ahead!🤗
I’ll write to you soon!
Niyati ❤️
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