Retirement is the golden period when you enjoy the fruits of all you have accumulated through your hard work in your career.As your retirement approaches, you will plan how to spend this phase of your life. However, with all your enthusiasm, it is also natural to be beset with financial concerns. There is always the fear of being unable to afford your present lifestyle. The most pertinent concern for most people is suffering from some medical condition which is expensive to treat and will take out a substantial chunk of your retirement corpus. Health insurance for senior citizens above 60 years is necessary to address your worries.
As per the World Health Organisation (WHO), India’s life expectancy has increased to 70.8 years in 2019, and therefore, you need to arrange to meet the costs of healthcare for living long. India’s high medical trend rate, commonly known as medical inflation, at 14 % in 2022 - 23 in India, the highest in Asia and nearly 30% above the global average of 10.7 % for a similar period, continues to put up a strong case for coverage by health insurance for old age.
Only a handful of large corporations continue to provide retired employees with employer-sponsored group medical insurance schemes. Usually, the coverage is usually insufficient to take care of all your medical expenses. For most of us, the coverage we enjoy from our employer-provided group mediclaim policy will cease as soon as we retire.
What are the Best Health Insurance Plans for Senior Citizens?
Thankfully, there are several options for health insurance for senior citizens above 60 years, both from the government and private health insurance companies. These will eliminate your financial worries and let you go forward smoothly with your retirement plans. It is still early to comment on the best health insurance plan for senior citizens. Let us look at some of the options available in the way of health plans from the government:
- Pradhan Mantri Jan Arogya Yojana (PMJAY) is a free healthcare program for senior citizens living below the poverty line without alternative healthcare insurance options. It provides free treatments, including surgeries and medicines.
- The Senior Citizen Health Insurance Scheme covers medical costs,for senior citizens without any other medical insurance.
- Rashtriya Swasthya Bima Yojana (RSBY) covers hospitalisation expenses and other procedures for senior citizens without health insurance.
- The Central Government Health Scheme and Employee’s State Insurance Scheme are for workers and their families in the organised sector, government workers and those who have retired from these jobs.
These government-provided health insurance schemes are limited in their coverage.
The best way to plan for retirement is to purchase a health insurance plan, preferably a floater plan with your spouse, with higher coverage, say Rs. 50 lakhs to One Crore, as early as possible. Purchase a base or comprehensive plan and build your coverage with a super top-up plan. This is an excellent option for health insurance for old age, which, however, you need to plan for at an earlier age, before retirement.
Benefits of Senior Citizen Health Insurance
The following are the benefits of investing early in seniors' medical insurance:
Financial Stability in Retirement
By purchasing such a plan for seniors' medical insurance, you know exactly how much you will have to pay to save yourself from such medical emergencies. You will also receive up to 10 % discounts if you pay your three-year premium at one go. Some health Insurance companies like Care Health Insurance also offer an additional 5 % discount for using digital channels.
Medical Emergencies
Retiring is like your dream come true until you factor in healthcare costs. Medical emergencies after retirement can permanently set back your retirement plans. By investing in health insurance for seniors over 60, you avoid the effects of such incidents.
Renewability
Investing early in your health insurance plan can ensure unlimited renewability. Once you grow older, medical insurance renewal and new issuance are subject to many medical tests apart from strict scrutiny from underwriters.
Increase of the Coverage Amount
Most health insurance policies include No Claim Bonus (NCB) and Super NCB, where your coverage increases subject to you not raising any claims in a year. In effect, it is a reward from your health insurance company for staying healthy and not making claims. Such No Claim Bonus accrues over the years subject to maximum limits. Care Health Insurance offers NCBs and Super NCBs where your sum insured may increase by up to 500 % in the Care Supreme plan. Such benefits are possible only when you stay invested in a policy for a long time. You are in effect, offsetting the medical expenses of a high-cost procedure by investing early.
Automatic Recharge
Another benefit you should actively seek in seniors' medical insurance is automatic recharge. This feature automatically replenishes your coverage amount upon exhausting your entire limit. This is applicable when the expenses are caused by different medical conditions or for the same medical condition, depending on the terms and conditions of your policy. This is an extremely attractive feature In a family floater plan as both partners may face medical emergencies after retirement due to increasing age.
Additional Riders
Additional riders are available for purchase along with health insurance policies. Riders such as Personal Accident Rider and Critical Illness Rider should be treated as mandatory to avoid huge expenses and to avail themselves of lump sum compensation after retirement.
Pre-Existing Disease Coverage
Health insurance policies cover pre-existing diseases, only after a compulsory waiting period. Such a waiting period may be between one to three years, depending on the terms and conditions of your policy. Investing early in health insurance before retirement, may avoid this waiting period, as the probability of suffering from such a disease or condition when you are younger is comparatively less. Such lifestyle diseases affect you with advancing age. By purchasing your health insurance policy at a younger age, in the unfortunate event that you do suffer from such a disease, at that time, it is not pre-existing. Your health insurance policy immediately covers it.
Note: The Insurance Regulatory and Development Authority of India has shortened the maximum waiting period for coverage of pre-existing diseases from 48 months to 36 months, effective April 01, 2024.
Pre- and Post-Hospitalisation Benefits
Health insurance for seniors over 60 reimburses expenses for purchasing medicines, physician’s fees, and medical tests 30 to 60 days before your treatment and 60 to 90 days after it. Such benefits are vital in keeping your retirement corpus unaffected by picking up the equally expensive expenses incurred pre and post-hospitalisation.
Cashless Hospitalisation
Cashless hospitalisation is another significant benefit offered by health insurance policies. This feature directly covers medical expenses without you having to pay out of your pocket. So you need not dip into your savings or temporarily liquidate your investments. Your investment plans post-retirement continue as planned.
How to Choose the Best Health Insurance for Senior Citizens?
Ensuring that you continue with your chosen health insurance policy break-free is extremely important once you have retired. Usually, you would not have a break if you chose your health insurance policy carefully. Adhering to the following steps during your search will help you choose your ideal policy:
1. Conduct thorough research and find the policies that cover the usual and expected ailments that afflict senior citizens. Compare your shortlisted policies with your needs to find the best fit.
2. Check all the inclusions and exclusions of the health insurance policy. Look at the sum insured offered and the waiting periods, limits, sub-limits and co-payment clauses.
3. Calculate and compare the premium of your shortlisted policies to arrive at the most affordable policy.
4. Contact your health insurance company, either physically or online, and apply for the same after providing all the details asked for. Please provide all details correctly and to the best of your knowledge without hiding any material facts.
Note: Do get in touch with Care Health Insurance for Care for Senior Citizens policy the best health insurance plan for senior citizens with the following benefits:
- Zone-based premium based on your city of residence for affordable premiums
- Recharge of the sum insured
- No claim bonus (NCB)
- Upto 10 per cent discount on premium for paying multiple years premiums together
- Optional NCB Super
- Optional waiver of co-payment
- Optional reduced waiting period for pre-existing diseases
- Optional Care Shield with no loss of NCB and NCB Super even if your claim provided your claim is less than 25 per cent of your sum insured and automatic increase in sum insured at the same premium as per last year’s Consumer Price Index (CPI) inflation
5. After selecting and paying premium, undergo medical check-ups if so required. These will help the underwriters determine your medical condition you are in and will help avoid rejection of future claims.
Once your policy is issued, ensure the following:
- Read all the terms and conditions of your policy, including the fine print
- Do ensure that you keep your policy documents accessible and secure at the same time
- Also, please ensure you pay your renewal premiums within the due date, within the grace period offered.
Conclusion
Retirement and growing old bring varied healthcare challenges. Careful evaluation of your health insurance needs and matching them against the features offered by health insurance policies is the best way to purchase coverage and keep yourself covered break-free.
>> Also Read: Importance of Buying Health Insurance for Senior Citizens
Disclaimers: All plan features, benefits, coverage, and claims underwriting are subject to policy terms and conditions. Kindly refer to the brochure, sales prospectus, and policy documents carefully.
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