The need for adequate health protection holds importance not just during the working life of an individual but even after one retires. That is where senior citizen health insurance plans come to the fore, as these are meant exclusively for seniors between the ages of 60 to 80 years.
Why do you need to buy a Senior Citizen Health Insurance Plan?
Despite of the insurance companies offering a range of health insurance plans, only around 21.6 crore people in India (less than one-fifth of India’s population) are covered under health insurance. Even those who are covered under a health plan, only 67% are covered by public insurance companies, according to National Health Profile 2015 compiled by the Central Bureau of Health Intelligence.
Here are important reasons that highlight the need for buying health insurance for seniors –
- According to the cross-national survey on health conducted by the National Sample Survey Office (NSSO) in the first half of 2014, the cost of treatment rose at a double-digit pace of growth, overtaking average inflation in both rural and urban India over the past decade.
- In India, chronic diseases, such as heart diseases, cancer, etc., are the leading cause of death and their occurrence has continually increased over the last decade.
- The population of elderly in India is expected to reach 300 million by 2050. Thus, there is a requirement to have a realistic shift in the way the elderly lead their lives.
As you age, the risk of contracting diseases increases because your organs also start to age. Also, after retirement, people usually do not have a regular income to meet their medical treatment cost. These are some of the key reasons why having financial security in the form of senior citizen health insurance plan, to face any medical emergency, becomes extremely important.
Aspects to consider when buying a senior citizen health insurance plan
There’s no paucity of health insurance plans available at present, which is why you need to understand the important aspects that must be keep in mind when buying a senior citizen health insurance plan.
- Age
In general, health insurance companies offer health plans for senior citizens between the age group 60-80 years. However, there are some health plans which have limit on the entry age of insured, but provide lifelong renewability. You can even find plans for senior citizens without any age limits.
Choose a plan that provides lifelong renewability without any entry age restriction, along with comprehensive medical coverage.
- Coverage
Checking the coverage of a senior citizen health plan is very important, as you need to be sure whether the plan provides enough cover for your medical requirements or not. For senior citizens, having a critical illness cover is essential, as chances of developing a critical illness increases with age. You must thoroughly review all terms and conditions, including the benefits, coverage and exclusions. Often, there is a clause linked to a benefit, which we overlook – this clause becomes a deciding factor at the time of claim reimbursement.
- Pre- Existing Diseases
Pre-existing diseases are the diseases that the insured has before buying the policy. If the senior citizen to be insured has any pre-existing diseases, it will be covered only after completion of the waiting period, which is usually one or two years of the policy. However, some companies do not cover pre-existing diseases at all, so make sure to check the pre-existing disease coverage before purchasing.
- Co- payment
Co-payment is a fixed amount which the insured has to pay at the time of hospitalization or availing a medical treatment. The co-payment amount is fixed at the time of purchasing the plan. Generally, the co-payment percentage varies between 10-20 per cent.
- Premium
The premium of health insurance for senior citizens is comparatively higher, the reason being the associated risk. Therefore, it is best to compare premiums of different health insurance policies which offer the required cover, and then make the decision.
- Sub-limits
Health insurance companies may have specified limits for certain illnesses or treatments. So, check the sub-limits or caps when buying a plan.
- Network Hospitals
Ideally, the health insurance provider that you choose should have a widespread hospital network. This requirement becomes even more pronounced in case of an insurance plan for senior citizens. Look for a plan that comes with broad network of hospitals, preferably including the most reputed hospitals in your vicinity. Also, check whether the list includes your preferred hospitals.
Health insurance plans are a great way to secure you and your family against sudden medical emergencies, especially in the later years of your life. Hence, take the sensible step of taking a senior citizen health insurance plan, if you haven’t already.