Insuring Your Senior Days Adequately

We are always reminiscing about our past... how we could cover that five kilometer jogger’s stretch without breaking into a pant. But time as we know waits for none, and one will age. Although ageing brings forth its own beauty, it also brings in many health problems. But if sufficiently covered, one has nothing to worry about. However, there are certain factors to consider before opting for a senior citizen health plan.

Similar to all investment procedure, it is a fact that you will have to choose a plan as per your need and requirements. The myth that a family floater plan is sufficient to cover all the family members continues to prevail.. well, it is not. With age, our body needs more medical attention than a 25 year-old’s and a single family floater will be completely drained in case of the medical attention meted out to our aged parents. Therefore, a separate healthplan for our parents is a must. It is understandable that the policy terms are pretty hard, but it  is necessary to understand the  policy in its entirety for a smooth claiming process.

Anurag Rastogi, member of Executive Management, HDFC ERGO General Insurance, said, “It is prudent to choose a comprehensive health insurance policy for senior citizens, with a sum insured that is sufficient to cover their hospitalisation expenses in case of any medical emergency. The policy should also cover expenses that may arise due to any critical illnesses and, more importantly, cover any pre-existing diseases with minimum or no sub-limits. Moreover, the health plan should offer the policy to be renewed throughout life.”

Many insurers have introduced the benefits of a comprehensive health insurance policy at an affordable price for senior citizen with no capping on the hospital room rent, no co-payments and no sub-limits on diseases. Also, the plan has no restrictions on the entry age limit and can be renewed throughout life. It is advisable to choose those plans, which provide maximum entry-level age.

The policies come in a wide variety, but as a standard, a minimum cover of `5 lakh and a super top-up plan is a must to ensure the adequacy of the cover. An ideal sum insured is one, which would provide an adequate cover irrespective of the disease. Ravi Vishwanath, Executive Director and CEO, Reliance Health Insurance said, “The thumb rule of health insurance is one should buy as much cover as one can afford. Everyone should buy a health policy before they reach the age of 60, however after 60, there are only a few specialised plans that are available for senior citizens. While buying a health plan for senior citizen parents, always look out for adequate sum-insured, waiting period in case your parents suffer from pre-existing diseases, exclusions if any, deductibles, sub-limits and co-payment terms under the policy.”

Healthcare is expected to be one of the largest expenses after retirement and is likely to consume large portion of one’s retirement corpus. We all know that health care inflation continues to outpace the rate of general inflation and one needs to plan for that. Most of the policyholders assume that all the health care related cost will be covered under the health insurance plan. It is advisable to go through  the policy wordings and make sure that the cover offered is worth  the premium.

The premium is high for higher age brackets and in certain cases, may vary subject to lifestyle diseases suffered by the consumer. According to industry experts, senior citizens are more prone to illnesses with increasing age, thus having an adequate health cover is a must for them. Senior citizens pay higher premium depending on the types of policy, cover and sum insured. If parents suffer from a pre-existing disease, one should definitely look at exclusions and waiting periods, and opt for a cover that comes with no sub-limits. In case of higher sum insured, most insurers ask to undergo a pre-policy medical checkup, based on which premium is charged. However, including parents in a family floater plan can also push up the overall premium for the family as they are linked to the age of the eldest member of the family. Hence, a separate family floater plan for parents should be opted. Vishwanath said, “It is recommended to purchase two separate policies, one for yourself, spouse and children while the other policy can include your parents. Both the policies can be separate floater plans. Additionally, buying two plans also enables one to get the maximum benefits available under the Section 80D of the Income Tax Act.”

To sum it up, while health insurance plans act as a cover, for a family, against unforeseen medical emergencies and financial crisis, lack of attention to details could make a family vulnerable despite the availability of a health cover. Senior citizens require a separate style of care owing to age-related health issues. Similarly, they also need tailormade plans to cover health  risks and for a stress-free future.

nirmala@outlookindia.com