[androdev]

Or it could be read as nobody buying health insurance in Madurai and they want to find solutions to grow their customer base in those small towns.

[ValarMorghulis]

Originally Posted by DigitalOne

...
This could mean
1) Health costs in Tier2/3 cities are 40% lesser than Mumbai and/or
2) People in Tier-2/3 cities are healthier and have lesser claims, so that insurance companies are still able to be profitable.
Either way, this is a point in favour of living in a Tier-2/3 city post-retirement.

I found this really weird and towards a slippery slope.
1. Would the insurance company refuse claim if I'm a resident of tier-3 city but had a health scare on a trip to a tier-1 city?
2. I reside in Bangalore but tomorrow get transferred to Delhi. Will I have to file for new charges?
3. Someone resides in a remote Uttarakhand village. Premiums are very low. Due to a health scare, the person has to be now transferred to a specialty hospital to Delhi? What happens now?

Next:
1. Vehicle insurance: In cities with more claims, premiums could be more.
2. Term insurance: Folks residing in tier-1 cities need to pay higher premiums.
...and so on...

I just dislike this.

[am1m]

Originally Posted by DigitalOne

1) Health costs in Tier2/3 cities are 40% lesser than Mumbai and/or...

It depends a lot on the Tier-2 town/city. A few of them do offer comparable living options at a lower cost. Lots of them, costs are lower, but you'll also need to do without a lot of things you take for granted in a metro.

I've had surgery at a Tier-2 coastal city. The care was much better and literally at fraction of the cost of a Bangalore hospital. But that is only because of the number of medical colleges and hospitals in this area. I wouldn't risk it in a comparable tier-2 city in some other part of the state.

So, yes, it is certainly possible to move to a smaller city and have a good quality of life at lower costs, but research whatever tier-2, tier-3 place you are considering first. Rent for a year and see before making the move.

One thing I can say for sure though, having been a Bangalore resident all my life (40+ years), and being a frequent visitor to Mumbai - our cities are getting ridiculously expensive and polluted, with the quality of life going down each year. So personally, even though I'm a city boy, born and bred, I don't see myself living in one when I get old.

[saket77]

Originally Posted by ValarMorghulis

I found this really weird and towards a slippery slope.
1. Would the insurance company refuse claim if I'm a resident of tier-3 city but had a health scare on a trip to a tier-1 city?
2. I reside in Bangalore but tomorrow get transferred to Delhi. Will I have to file for new charges?
3. Someone resides in a remote Uttarakhand village. Premiums are very low. Due to a health scare, the person has to be now transferred to a specialty hospital to Delhi? What happens now?

Next:
1. Vehicle insurance: In cities with more claims, premiums could be more.
2. Term insurance: Folks residing in tier-1 cities need to pay higher premiums.
...and so on...

I just dislike this.

Some of your hunches are already true.

People residing in different cities/ towns are already categorised under 'Zones' (like Zone 1, 2, 3 etc) by health insurers and the premiums are decided on the basis of Zones. If a non-metro (Say Zone 2) insured wants to get treated at a hospital in Mumbai, they will have to pay some extra percentage (like 20% of total amount) from their pocket which can be termed as co-pay by insurers.

Vehicle insurance already captures your RTO location. Premiums based on your location can very well be a reality soon. More and more cars are now 'connected cars' and they track your driving behaviour. I wouldn't be surprised if insurers start considering this (now) personal data (through a legislation) to arrive at your particular premium. Pay as much as you drive is being already offered by some insurers.

[aadya]

I found this really weird and towards a slippery slope.
1. Would the insurance company refuse claim if I'm a resident of tier-3 city but had a health scare on a trip to a tier-1 city?

No. They will not refuse.

2. I reside in Bangalore but tomorrow get transferred to Delhi. Will I have to file for new charges?

When we change our address, the subsequent premium will change.

3. Someone resides in a remote Uttarakhand village. Premiums are very low. Due to a health scare, the person has to be now transferred to a specialty hospital to Delhi? What happens now?

Claim will be approved, but proportionate to the difference in the premiums and packages.

Next:
1. Vehicle insurance: In cities with more claims, premiums could be more.
2. Term insurance: Folks residing in tier-1 cities need to pay higher premiums.
...and so on...

1. Yes
2. I don't think so.

[Eddy]

The health insurance rates vary from Delhi to Pune too. It's a difference of about 5k for 50L cover.

Delhi's pollution, traffic menace, and high cost of treatments contribute to this. And yes, you need to inform the insurer if you change base location.

[blorebuddy]

After observing how our returns on investments (RE, Equity, Debt, Gold) are getting taxed more and more over these years, I realize our future is very uncertain. I feel very insecure about the future with the increase in Healthcare costs, inflation (not the one which govt projects), tax laws focusing gains without considering the inflation etc etc. I think we need to be employable as much as we can. I do not think it's difficult to take Retire Early option unless otherwise someone has 10s of crores which can generate inflation beating returns and also budgeted for future tax increases. Otherwise you never know when you will run out of money during your later stage in life.