Health issues increase with age, and the rising healthcare costs can create significant financial setbacks for senior citizens with limited income and savings. Hence, if you are in the golden years of your life, taking good care of your health and staying covered under a senior citizen’s health insurance policy is essential. Investing in this insurance product will ease your worries during medical emergencies. While health insurance for senior citizens offers many benefits to policyholders, high policy premiums are a significant drawback. However, there are ways to reduce medical insurance premiums for senior citizens and make this insurance product affordable. Let’s talk about this in detail.
What is a senior citizen’s health insurance policy?
A senior citizen’s health insurance policy is an insurance product designed for people over 60 years of age. The policy covers the medical expenses of the insured and helps them opt for timely treatment at reputed healthcare facilities without fretting about paying the bills from their pocket.
Ageing weakens the immune system and affects the functioning of important organs in the body. These factors make you prone to infections and diseases and increase your healthcare bills. Since you may have limited retirement income and savings, paying huge healthcare bills can create significant financial setbacks. This is when having a senior citizen’s health plan can help. This insurance product will cover your medical bills up to the policy sum insured, so you won’t have to worry about paying them from your savings.
Senior citizen’s health insurance – Features
The following are the features of a senior citizen’s health insurance policy —
- Wide coverage: A comprehensive senior citizens health insurance policy covers hospital bills, pre- and post-hospitalisation expenses, organ donor expenses, road ambulance bills, AYUSH treatments, and more. Hence, staying covered under this insurance product can help you meet your healthcare needs without burning a hole in your pocket.
- Cashless treatment: If you are covered under health insurance, you can choose a network hospital for cashless treatment. All you must do is inform the insurer in advance and go to the hospital with your cashless card and a valid photo ID proof. If the insurer/TPA approves your treatment, they will settle your medical bills directly with the healthcare establishment.
- Daycare procedures: A senior citizen’s health insurance policy also covers daycare procedures or treatments that require less than 24 hours of hospitalisation.
- Home healthcare: If the doctor advises home healthcare due to the non-availability of rooms in the hospital or for some other reason, the insurer will cover the bills. This benefit can particularly help senior citizens who require regular healthcare, but their ill health prevents them from visiting healthcare centres every time.
- Pre-existing conditions: The policy also covers pre-existing conditions, such as diabetes, heart disease, and high blood pressure, after a maximum waiting period of 3 years. Since these conditions are common among senior citizens, having a health plan covering them can help.
- Complimentary preventive healthcare: Many insurance providers offer complimentary preventive health check-ups to senior citizens. Policyholders can avail of this benefit at the time of health insurance renewal or as stated in the policy terms and conditions. This benefit can help diagnose a health condition in its early stages and enable the policyholder to seek timely treatment.
- Tax benefits: Under Section 80D of the Income Tax Act (1961), senior citizens can claim tax rebates of up to INR 50,000 every year on the premium they have paid towards their health insurance policy.
Tips to reduce health insurance premiums for senior citizens
The following are tips that can help reduce premiums of a senior citizen’s health insurance policy —
- Compare health insurance policies online: Shortlist a few senior citizen’s health plans online and compare their scope of coverage and premiums. This will help you find a policy offering the coverage you need at affordable premiums.
- Buy health insurance early: It is wise to invest in a senior citizen’s health plan as soon as you turn 60. If you are fit and healthy, you are less likely to make health insurance claims. Hence, you can earn a no-claim bonus for every claim-free year in the form of reduced policy premiums.
- Opt for preventive healthcare: Regular healthcare, such as screenings and vaccinations, can reduce the chances of illnesses and hospitalisations and help you earn no-claim bonuses. These no-claim bonuses can reduce your health insurance premiums by up to 50%.
- Opt for copayment: Copay or copayment means paying the pre-decided percentage of the claim amount from your pocket. If you opt for this health insurance clause, you must pay a part of the claim amount, and the insurer will pay the remaining. Copayment reduces the financial liabilities of insurance companies, so insurers reduce policy premiums in return.
For example, you opt for a copayment of 20% with your senior citizen’s health insurance policy. You get admitted to the hospital for a medical procedure, and your bills add up to INR 1 lakh. In this case, you must pay INR 20,000 from your pocket, and the insurer will pay INR 80,000.
- Choose a deductible: A deductible is another clause that helps reduce health insurance premiums. It is the pre-decided amount you must pay for your healthcare expenses before the insurer starts paying. Since deductibles divide the risk between policyholders and insurance companies, insurers offer a discount on premiums.
For example, you opt for a deductible of INR 50,000. You undergo surgery, and your hospital bills amount to INR 1,50,000. Since your policy has a deductible, you must pay INR 50,000 from your pocket, and only then will the insurer cover the remaining amount of INR 1 lakh.
Here, it is important to note that if you fail to pay the deductible, the insurer will not settle your claim. If your hospital bills are less than the deductible, you must pay the entire bill from your pocket.
- Earn a no-claim bonus: Although health issues increase with age and you are likely to use your health plan to pay the bills, it is wise to pay small bills from your pocket to earn no-claim bonuses for every claim-free year. No-claim bonuses can help reduce policy premiums by a significant percentage. If you don’t raise health insurance claims for 5 consecutive years, you can earn a no-claim bonus of up to 50%.
- Follow healthy lifestyle habits: Healthy lifestyle habits, such as consuming a nutritious diet, exercising regularly, and getting restful sleep at night, can also help reduce your policy premiums. These habits can lower the risk of lifestyle diseases and help you maintain good health. Thus, if your pre-policy medical screening reports show a good medical history, the insurer will keep policy premiums affordable.
Conclusion
Health issues and healthcare expenses increase with age, and these factors make medical insurance an important investment for senior citizens. If you are worried about high policy premiums, opting for a copayment or deductible, earning no-claim bonuses, and maintaining good health can help reduce your premium liabilities. Moreover, you can claim a tax refund of up to INR 50,000 annually on health insurance premiums, so the amount will not pinch your pocket.
Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wording and prospectus before concluding the sales.