KINZANG DORJI TSHERING | Thimphu
In an effort to strengthen social security and provide citizens with long-term financial protection, the Royal Insurance Corporation of Bhutan Limited (RICBL) has launched two major products: a Deferred Annuity Scheme and a Medical Insurance Scheme.
The initiatives underscore the urgent need for citizens to prepare for retirement and unforeseen medical emergencies.
RICBL’s CEO Karma highlighted that financial planning is not determined by wealth, intellect, or professional success, but rather by an individual’s discipline and consistency in securing their future.
“In life, there are two phases – the active income phase, when you earn through your work, and the passive income phase, after retirement. Too often, we fail to prepare for the latter. That is when we become vulnerable – to illness, to insecurity, and to financial dependence,” he said.
Karma emphasized that insurance must be placed at the core of financial planning, alongside savings. While bank deposits provide liquidity, he explained, they do not cover risks related to health, education, or income security.
Insurance, on the other hand, mitigates life’s uncertainties and offers protection during retirement. He further urged Bhutanese citizens to start early, even with small contributions, so that savings can compound into substantial financial support during old age.
“The goal is not to become rich, but to live a dignified life in retirement. A good financial plan is one where your well-being is secured, where you can send your children for higher education, where you do not have to worry about sudden sickness, and where your spouse is protected after you are gone,” the CEO added.
The deferred annuity scheme has been designed to provide a guaranteed stream of income after retirement.
Explaining its features, Kinga Thinley, General Manager of the General Insurance Division, said the scheme offers flexible options to suit different needs, including life annuity, joint life annuity, and guaranteed minimum payout periods.
Eligibility begins at age 18; with vesting ages at 50, 55, 60, and 65, and the minimum accumulation at the time of vesting is Nu. 100,000.
He noted that annuity products are standard across the world as a safeguard against outliving one’s savings, and RICBL’s initiative reflects the corporation’s commitment to securing the dignity of citizens in their later years.
The second product, the medical insurance scheme, addresses one of the biggest financial risks faced by Bhutanese families today: the rising cost of healthcare and medical referrals abroad.
According to RICBL, the government spends an average of Nu. 250 million annually on referrals to India, with expenditures in recent years reaching as high as Nu. 1 billion.
“This puts enormous pressure on public resources and leaves families vulnerable. Our medical insurance is designed to ensure Bhutanese can access treatment promptly, including in over 14,000 empanelled hospitals across India, without waiting for referral approvals,” Kinga said.
The scheme provides cashless treatment in partner hospitals, with sum insured options ranging from Nu. 300,000 to Nu. 1 million. Premiums can be paid annually or in monthly installments, making it accessible for individuals and families.
Coverage extends from three months of age to 70 years, with reduced waiting periods for pre-existing conditions compared to international norms.
Additionally, the product allows patients to seek medical care directly upon a doctor’s advice, without the need for referral committees.
RICBL officials stressed that the introduction of these products is guided by social responsibility rather than profit.
“We will not make much money from annuity or medical insurance. But as a corporation established for the welfare of the people, RICBL sees this as part of our duty,” Karma said, adding financial planning in Bhutan must evolve to include risk management.
He, however, warned that insurance is not about hoping something bad happens. It is about knowing that if it does, you are protected. “Without insurance, one medical emergency or one family tragedy can wipe out everything you have built.”
The importance of such schemes is increasingly recognized by citizens across Bhutan. Bimal, a resident of Thimphu, said he chose insurance for the sake of his son’s future.
“I found this children’s scheme fantastic since it provides risk coverage and saves my tax as well. Having learnt the benefits of insurance, I encourage people to go for insurance over other financial products,” he said.
In rural areas too, insurance is emerging as an essential safety net for households with limited savings.
Chimi, from Wangdue Phodrang, explained how rural insurance schemes have eased financial pressure during difficult times.
“Since we never can save enough, it’s better to have insurance. It helps us during financially difficult times since we get claims. We only pay once a year and it keeps us covered throughout the year. That’s why we’re lobbying with the Gewog to increase insurance coverage for both rural life and house,” he said.
Such testimonials reflect the growing awareness that financial products like annuities, medical coverage, and rural insurance can transform lives by offering both security and dignity.
For many, these products are not only about planning for retirement but also about ensuring that families are not left vulnerable during crises.
The CEO urges citizens not to delay their financial planning. “Whether it is securing your post-retirement life, ensuring your children’s education, or protecting yourself from medical costs, the time to act is now. Every young Bhutanese should start their financial planning the day they begin earning.”
RICBL officials also confirmed that awareness campaigns will continue nationwide to help citizens understand and adopt structured insurance and retirement products, with the broader goal of enhancing financial resilience across Bhutanese society.
