Managing health insurance corpus for retirement involves holding part of the funds in liquid assets for immediate needs and investing the rest for growth.

Practice question from NISM Series XVII- Retirement Adviser Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

A

The corpus can be used to buy a health policy covering all health aspects over the retirement period
Always hold a part of corpus in easily accessible liquid products and replenish periodically from rest of corpus which has been invested for better returns

Correct answer
C

The corpus can be used to buy an annuity and the payout from annuity can be used to meet the health expenses as and when they arise
D

Invest the corpus in risky or low risk products to earn returns depending on level of medical expenses likely to occur

Why this is the answer

This approach ensures liquidity for immediate needs while allowing the remaining funds to grow.

Test yourself for real

Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.