It is not uncommon to cease insurance or takaful protection upon retirement especially health cover. Simple and frequent reason is that the retiree is no longer actively at work. This is obviously against the consumer needs as it is the period where medical attention is desired most due to the deteriorating health condition.
We can overcome with the situation by introducing a special scheme where the underwriter need not to worry on the escalating risk exposure. The scheme is a simple sinking fund or pure endowment with minimal death cover with the target desired fund as the sum cover upon maturity at retirement age. Upon retirement, the total accumulated fund will be utilized to cover all medical costs till depleted. To ensure longer period of cover, the amount required to manage the medical cost shall be as minimal as possible so that the balance of the fund will continue to be invested for optimum investment return.
