Can we extend the tenure of PPF account upon maturity?

I came to know that we can also extend the tenure of the PPF account beyond 15 years. If yes, for how many years can we extend a Public Provident Fund (PPF) account? - G Durga Prasad, Guntur.

Congratulations on completing fifteen years of investing in PPF. Well, you are permitted to extend it for another five years. You can seek extension in blocks of five years upon maturity after the 15 years lock-in period. There is no restriction or ceiling on the number of times you can opt for an extension. You need not contribute or deposit annually. Let us assume that your PPF account is getting matured in 2021. You can extend it for another five years. You may also extend it for a further five years in 2026 and 2031 so on and so forth. It is not mandatory to deposit money after maturity (15 years). The balance will continue to earn interest until it is closed. Also, you are eligible for making partial withdrawals. You can withdraw 50 per cent of the corpus. The other choice is to close the account, take the tax-free corpus, and invest in the equity market. You may choose either of the options depending on your age, risk profile, and financial needs.

I work for a bellwether IT company, and my employer provides free health insurance cover. Do I need to take a supplemental cover or another health cover parallel to the employer's Group Insurance Policy? - P Sailaja Sekhar, Hyderabad

Ideally, you must have a separate individual policy. Apart from the employer's health coverage, a personal insurance policy eventually reduces the chances of facing medical contingencies. Adequate health insurance cover has become an essential priority for every individual in rising illnesses and escalating treatment costs. Also, the group cover policy given by your employer may not be adequate. If the individual happens to be unemployed, self-employed, or jobless, the need for buying sufficient health insurance cover becomes all the more critical. A family floater health insurance is a must-have if you are married. Most youngsters these days are exposed to lifestyle diseases, including high blood pressure, heart problems, and mental health problems. Working in different time zones, irregular food timings, and unrealistic deadlines causes stress. Mental stress is a key culprit behind cardiovascular events, including heart attacks and strokes.

The basic premise of health insurance is that the annual premium keeps increasing with age. So the need for health insurance at a young age is essential to avoid mental trauma and financial dent. Getting a health insurance policy at a young age will pay dividends as it offers many benefits. It serves as a cushion in financial security during employment, unwaged situations, and post-retirement age. Buying a health insurance policy before age 40 will also cover all pre-existing conditions. Medical inflation in India is almost 8 per cent, higher than the wholesale price index, the primary inflation measure. Medicines and treatments for cancers and other diseases are exorbitantly high. Uncertainty about the length of life carries the risk that we may outlive the limited resources and be forced to reduce living standards at advanced ages substantially. The primary need for insurance is to hedge the longevity risk.

Meeting the ever-rising healthcare cost continues to remain a crucial worry for elderly citizens. The lion's share of their income goes towards healthcare as they age. Ensure that your parents are insured.

Adult-onset Diabetes, Arthritis, Cataracts, Dementia, Glaucoma, Joint replacements, Lung diseases, Kidney and Bladder problems, Parkinson's and spine issues are the most common chronic diseases afflicting the elderly end-of-life morbidity. Aging will have a high impact on health care expenditures. The IRDI mandated Aarogya Sanjeevani Policy covers up to Rs five lakh. However, the entry age for this scheme was set as 65. Hence, taking health insurance for parents is a must. Covering them with a health insurance policy becomes more critical if parents are retired or senior citizens. Covid-19 has become a bitter reality across the world. We realized the importance of the Health Insurance policy when it took massive lives and forced people to hospitalization. Medical expenses during pandemics will leave us in obscurity and penury. So, considering the given scenario, buying an individual cover designed to safeguard coronavirus-like pandemics. It is sensible to relook at the existing policy and get additional cover and additional riders, which are limited under a standard medical insurance policy. Enhancing the sum assured of a current policy is necessary with the growing age, life events like marriage, childbirth, and increasing income.

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(The author is a SEBI licensed Research Analyst. The alumnus of the Indian Institute of Foreign Trade (IIFT), he had held leadership roles at National Geographic, Reliance Radio Television Luxembourg, STAR TV, etc)