12 Tips for Buying A Health Insurance Plan for Senior Citizen

November 13, 2021 Mutual Fund

The COVID-19 pandemic has become an eye-opener for many of us, reminding us of the importance of having a good Health Insurance Plan for ourselves and for our families. With the constantly increasing cost of medical expenses, having a Health Insurance Policy has become a necessity of life.

With the passage of time, ageing comes with different complications. Senior citizens who are 60 years and above are more prone to health disorders. With increased age, the chances of getting serious health issues that require expensive medical treatment also increaseSenior . In most of the cases, as the income of the senior citizens cuts down or completely stops, it can become challenging for them to manage these heavy medical expenses. Therefore, a good health insurance plan is required for elderly people. It will not only help our parents to age gracefully but also will save their and our hard-earned money.

Senior citizens have different requirements from their Health Insurance Plan as their health issues are completely different from young people. Moreover, the cost of medical treatment for senior citizens is comparatively higher. If you are a senior citizen or planning to buy a Health Insurance Plan for your elderly parents, then you definitely do not want your or your parents’ hard-earned income of many years to spend on hospital bills. Many health insurance providers have launched special Health Insurance plans that cater the needs of senior citizens.

Although you can buy a Family Floater Health Insurance Policy for elderly people, it is advisable to opt for a senior citizen health insurance policy or individual health insurance policy as it makes a considerable difference in the premium that you will pay. Moreover, senior citizens specific policies have added benefits that you would otherwise not get with a normal health insurance policy.

But, before you do a few clicks on your phone and buy a senior citizen health insurance policy, here are a few tips that can help you to choose the right Health Insurance Policy:

1. Do not delay:

Many individuals tend to delay the purchase of a Health Insurance Policy because they think that they cannot afford the premium. However, the health insurance premium increases in accordance with your age. Furthermore, many insurers do not offer health insurance after a certain age or after the diagnosis of certain health conditions. Therefore, it is vital to buy a Health Insurance Policy as soon as possible to avoid paying high premiums and get covered before you become ineligible. Moreover, it is essential that you timely renew your Health Insurance Policy to get uninterrupted coverage. To avoid missing the due date of the premium payment, an auto-payment facility is recommended.

2. Choose the right insurer:

Apart from the offerings by the insurer, you should consider the customer reviews, claim settlement ratio and claim settlement process of the insurer. Many of us focus mainly on the features, benefits and premium of the policy and completely ignore the claim settlement ratio and claim settlement process of the health insurance company. However, if the health insurance company does not have a quick and easy claim settlement process and a good claim settlement ratio, then the chances of the settlement of your claim are lower.

3. Get the sufficient sum insured:

Many individuals buy the minimum sum insured which the insurer offers in order to save the premium. However, the minimum amount might not be sufficient to meet the medical requirements that arise with old age. Moreover, as we already discussed, the costs of medical treatments are higher for senior citizens due to the complexities of the health conditions. Therefore, it is important to calculate how much sum insured you need based on the possible medical assistance you would require. If you do not get sufficient sum insured, then it will not serve the purpose of buying a health insurance plan as you will get the sum insured only up to the amount of sum insured and you will have to manage for funds to pay the excess medical expenses.

4. Get the critical illness cover:

Every day is a health challenging and family has to undergo financial hardship because of high treatment expenditures. Due to the complexities in health conditions with increased age, the possibility of getting critical illnesses like heart stroke, diabetes, paralysis, kidney failure, cancer, etc. also increase. Furthermore, medical expenses for the treatment of such illnesses are substantially higher than normal treatments. Although most health insurers do not offer the critical illness cover in their basic health insurance, they offer it as an add-on to their basic plan. So, to be financially protected against such illnesses, you can buy a critical illness cover for a slightly increased premium with your basic plan as it is extremely valuable and provides financial security.

5. Opt for domiciliary care:

Some medical treatments for senior citizens require hospital-like prolonged care at the patient’s home. Doctors may prescribe domiciliary treatment if the patient is unable to move or if the required facility is not available at the hospital. Some health insurers offer domiciliary care within their basic health insurance plan, whereas others offer it as an add-on cover, which needs to be purchased separately for a small increase in the premium. Domiciliary care cover is essential, especially when you are buying health insurance for senior citizens. So, before buying a health insurance plan assess your requirements and health conditions.

6. Check for the network hospitals:

Arranging for the funds, making reimbursement claims and claim settlement can be a hassle for elderly people. However, when you visit the insurer’s network hospital for treatment, you get the benefit of a cashless claim, where the insurance company directly settles the claim with the hospital and you do not have to pay anything from your pocket. Therefore, you should always choose an insurer that has a wide network of hospitals within your nearby area. Furthermore, you should also check whether your preferred hospitals are on the insurer’s list of network hospitals.

7. Check for co-payment:

Many senior citizens health insurance plans come with a co-payment clause. Co-payment or co-pay is a fixed portion of a claim amount that a policyholder has to pay out of their pocket. It can be either a fixed amount or a percentage of the claim. The insurance company decides the co-pay amount, which is different for different medical services. However, some insurance companies offer senior citizen health insurance plans without the co-payment clause for a slightly higher premium. Therefore, make sure that you know all the details of your policy before purchasing it to avoid any disputes later.

8. Cover for pre-existing diseases/illnesses:

Many senior citizens already have some underlying health conditions. The health issues you have before purchasing the health insurance policy are treated as pre-existing diseases/illnesses that require a waiting period to be covered under the Health Insurance Policy. The waiting period varies from insurer to insurer, which is generally 1 year to 4 years, depending upon the illnesses. However, not all insurers cover all pre-existing diseases. Therefore, before purchasing the policy, it is essential to check the list of pre-existing diseases that are covered under the plan and the waiting period for it.

9. Check the sub-limits for specific diseases:

Health insurance companies put sub-limits on the claim amount of certain treatments, like cataract surgery, that require high-cost medical treatments. Therefore, before buying the health insurance policy, it is advisable to compare the sub-limits of various plans and choose the one that matches your requirements.

10. Deductibles:

Health Insurance Deductible is a claim amount that a policyholder has to pay before the insurance company begins to pay for your healthcare expenses. The deductible amount is always specified in the policy document, and the insurance company does not pay/reimburse your claims unless you have paid the deductible. The higher the amount of deductible, the lower the premium you pay. Although the deductible lowers your premium, it can become difficult to pay the deductible at an elderly age. Hence, it makes sense that the senior citizen should opt for low or no deductible insurance plans.

11. Compare the premiums:

As senior citizen health insurance policies are quite expensive, there can be a substantial difference between the premiums charged by different insurers for the same features and benefits. Most health insurance companies have easy-to-use premium calculators on their websites, which can be used to calculate the exact premium amount that you will have to pay. You can also add the relevant add-ons and riders while calculating the premium. Apart from the premium, it is also advisable to check and compare the different features, benefits, terms and conditions, list of inclusions, list of exclusions, etc. of several insurance companies to get the best deal.

12. Check for other requirements:

If you have any specific requirements from the health insurance plan, you should check before buying the policy whether the plan offers those benefits or not. Some of the common covers that senior citizens should look for are:

• AYUSH treatment that covers the medical treatments done under Ayurveda, Yoga, Unani, Siddha, and Homeopathy. The elderly population are more likely to get advised of these treatments.

• Cover for psychiatric treatments as the cost of medical care for depression and other psychiatric disorders, which is common after you hit a certain age, can be very high.

• Cover for day-care procedures that do not need hospitalisation of more than 24 hours but can go out-of-budget. For example, cataract surgery, foreign body removal, dislocation surgery of bones, etc.

• Cover for bariatric surgery which is popularly known as obesity surgery.

• Health insurance plans that offer complimentary full health check-up as periodic health check-up is necessary for senior citizens.

• Zone upgrade facility that lets you change the zone if you change the location. Since the insurance company categorises zones based on the medical cost in that region, you can get the benefit from a lower premium when you change your location.

• Health Insurance Plan that does not have a Cap on room rent and ICU room rent are recommended to all, and not just elderly people.

• Health Insurance Plan that offers cumulative bonus can benefit you with discount in future premiums or increased sum insured.

To Conclude:

Health Insurance Policies are different so, make your decision wisely which will prevent you from later regrets. It is advisable to buy a specific senior citizen health insurance plan for elderly people as you get maximum coverage at an affordable premium. While buying health insurance for senior citizens, ensure that you use the tips discussed above which will help you to compare and choose the right policy. Also, make sure you check and compare the different plans of different insurers online and choose the best-suited policy.

This article first appeared on PersonalFN here