Factors to Consider while choosing Health Insurance for Senior Citizen

Insurance companies also extend health insurance to senior citizens. Although there are many such insurance plans, it is of paramount importance to examine finer information before taking up a plan. Insurance businesses consider Senior Citizen health insurance plans to be available for individuals between the age group of 60 – 80 years. If you are an existing insurance policyholder, you can renew your policy until 65 years of age.According to a recent updated guideline issued by IRDA, health insurance providers have to provide coverage to individuals up until the age of 65 years. Anyone looking to continue their health insurance policy with this updated guideline can do so until the age of 65. Also, with fewer constraints, those who try to change insurance providers for better service quality can do so.

While there are several variables to consider before determining whether or not to buy a Senior Citizens' Health Insurance, this paper outlines some of the following significant variables:

• Extent of Cover
• Co-Payment
• Renewal Ceasing Age
• Waiting Period
• Protection
• Coverage of Pre-Existing Diseases(PEDs):

Extent of Cover:

While most insurance companies give coverage ranging from 1 to 2 lakhs, understanding the upper limit provided by the plan you are interested in buying is essential.

Co-Payment:

Co-Payment is the percentage of the total bill you agree to pay when you sign up for a policy.  For instance, if the claimable hospital bill is X, the estimated hospitalization bill will require you to pay 0.2X or 0.1X. The percentage varies from one policy to another. It is therefore advisable to look for the co-payment clause and understand the percentage of co-payment that you are expected to make. Usually the higher the percentage of co-payment, the lower the premium of insurance.

Renewal Ceasing Age:

With the growing life expectancy, extending your health insurance cover for a longer period is not a bad idea. India presently has an average life expectancy of 65 years – projected to rise to 75 years by 2050. You should therefore be prepared for a longer rope for a higher life expectancy. Look for the cessation of age renewal in the health plan for the senior. This is the age post that will cease to exist.

Waiting Period:

Insurers apply a clause "Waiting Period" to policyholders who have adopted a fresh policy. The waiting period is a time frame that does not cover certain pre-existing illnesses and medical circumstances. In other words, policyholders will have to wait for a particular time before therapy claims are approved. Knowing the waiting period for the policy you plan to take up is advisable.

Coverage of Pre-Existing Diseases(PEDs):

PEDs are referred to as medical circumstances or illnesses present before the start of the policy plan. Insurers have different processes for issuing plans for elderly to people with PEDs. For example, for each pre-existing disease, a greater premium load. Insurers may not issue the policy at all for chronic pre-existing diseases such as cancer, heart disease, etc. In addition, the waiting period could range from 2 to 4 years.

Benefits of having Health Insurance for Senior Citizens

There are some apparent advantages of choosing health coverage for seniors. Here are some advantages from the scheme, you should know:

• Protection:

Seniors are more likely than younger people to be at risk for health. As hospitalization costs increase, it is important to have a safety net built around hospitalization-based medical expenditure. Subscribing to a health plan for seniors helps to build that safety net.

• Pre-Existing Diseases:

Pre-existing diseases are also covered under the insurer's terms and conditions.

• Hospitalization Cover:

Hospitalization costs are covered if the patient has been in hospital for more than 24 hours. The expenses covered include room rent, physician fees, drug expenses, etc.

• Pre & Post Hospitalization Expenses:

The costs of pre and post hospitalization are covered. The cost heads and the amount of days, however, vary from insurer to insurer.

• Tax Benefits:

The money spent on treating an employee (in this case your parent) is eligible for deduction under the Income Tax Act section 80DDB. A person or HUF (Hindu Undivided Family) may claim this deduction. Please note that this deduction can only be claimed by citizens of India. Rs.40,000 or the actual amount – whichever is less – is deductible for the financial year 2015-16 (i.e., assessment year 2016-17). In the case of senior citizens, Rs.60,000 or the actual amount – whichever is less – is deductible. Up to Rs.80,000 may be claimed for exemption from income tax in the case of very senior citizens (people in the age group of 80 and above).

Clearly, health insurance for seniors offers security for your loved ones, and other advantages from the same can also be used.Before you buy one, it is recommended that you compare the various health plans on the market thoroughly. Compare online and keep your loved ones safe.

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