In today’s time, health insurance is one of the most important investments that you make. In the case of senior citizens, it is even more crucial to have a strong financial back to avoid any untimely medical expenses. The healthcare is getting expensive every day, and without a health insurance plan, it is almost impossible for many households to counter the financial loss. However, when it comes to senior citizens, it gets tricky to get a health insurance cover.
Insurance companies often deny cover to patients who have critical illnesses and diseases like diabetes, cholesterol, and blood pressure. Even if they agree to provide insurance policy to senior citizens, there are so many restrictions that while choosing the right plan, the whole situation becomes overwhelming. It is a known fact that during old age, the demand for medical care increases, which puts a lot of pressure on the insurance companies. The loss ratio of insurance companies is highest in the case of senior citizens.
The high premium cost for senior citizens
One of the easiest ways that the insurance companies use to reduce the burden of claims in Senior Citizens’ Health Insurance Plans is the higher premium cost. The premium cost of a senior citizen’s health insurance plan is almost three times the regular price with every insurance company. The insurance companies also impose several restrictions on such policies, such as a longer waiting period for pre-existing illnesses.
The co-payment clause
Though the premium cost is highly unlikely to come down in case of health insurance policies for senior citizens, the options to reduce the waiting period for existing ailments do exist. There are some insurance policies available that are designed specifically for senior citizens. Under these insurance policies, you can reduce the waiting period substantially to a maximum of two years from four years by signing the co-payment clause. In this case, the insured person has to pay a part of the medical expenses, and the company will pay the remaining amount. Though it will not cover all the bills, in any case, it is much better, as otherwise you may end up clearing all medical bills on your own.
Upgrading pre-existing health insurance plans
If you got the health insurance plan when you were working, but the cover is less, you can upgrade the plan by paying some extra premium. Every insurance company provides upgrade options for senior citizens. For those who were regular with the payments and had a lower rate of claims, the additional premium cost will be lesser. Also, such upgrades will not require any waiting period.
For employees who have group insurance cover from the company and are retiring, there is an option to convert the group insurance cover to an individual with the same company. You will need to pay the higher premium cost, but there will be no or shorter waiting period. If you have an existing illness, please check with the insurance company if they will offer you an individual plan.
Benefits of the health insurance plan for senior citizens
Despite the higher cost, it is essential to have a health insurance plan for senior citizens. Here are some reasons why you should get it immediately.
- Old age means higher health care cost: It may sound harsh, but the healthcare cost for senior citizens is much more in comparison to working adults. With old age, it is common to get prone to diseases like diabetes, weak bones, etc. which can result in frequent visits to a hospital. With a health insurance plan, you can reduce the burden to some extent.
- Critical illness cover: Nowadays, you can get critical illness cover as a rider or standalone policy for senior citizens. Of course, you will have to pay a higher premium, but the cost of treatment for such ailments is beyond the budget of many households. With critical illness cover, you can avail of a lump sum amount for the complete procedure.
- Tax benefits: Though health always comes first, but you have to check the financial benefits of getting a health insurance plan as well. Under Section 80D of Income Tax Act of 1961, you can get tax benefits for paying a premium for your parents’ health insurance policy.
Health insurance is expensive for senior citizens, but it is a must
Senior citizens are prone to health problems and often need medical attention. Without a health insurance policy, the healthcare expenses can ruin your budget and savings completely. Keeping the pre-existing ailments, family medical history, and other factors in mind, it is better to pay a higher premium for senior citizen health insurance plan rather than ending up paying all medical bills on your own.
