Senior Citizen Insurance: Premiums Up, Coverage Limited—Plan Smart

Health insurance for your parents can get increasingly expensive with age. According to insurance industry underwriting norms, the high risk associated with ageing and associated hospitalisation claims typically leads to higher premiums. As people age, they may require more medical attention, frequent check-ups, and treatments. “The risk of lifestyle diseases, such as heart disease and arthritis, also increases, leading to overall higher medical costs. Additionally, premiums for older individuals are typically higher than those for younger people due to the increased likelihood of claims," said Bhaskar Nerurkar, head-health administration team, Bajaj Allianz General Insurance.

The insurance industry assesses risk based on an individual's age and health history. Consequently, older individuals often fall into a higher risk category and are charged a bit higher premium. In 2025, this trend is further driven by medical inflation (12–15 per cent annually) and advances in expensive modern treatments. The regulator has capped annual premium hikes for senior citizens at 10 per cent to mitigate the impact.

Just like any other health insurance policy, plans for senior citizens include waiting periods for pre-existing illnesses. Insurers may also exclude certain chronic diseases.

What To Keep In Mind When Taking Health Insurance For Elders 

Therefore, it is essential to review waiting periods and exclusions carefully before selecting a policy. In some cases, the waiting period for specific illnesses can be reduced by paying an additional premium. “Many senior citizen plans also include sub-limits, meaning the insurer will only cover expenses up to a certain amount. Thoroughly checking every detail and matching it with personal requirements is crucial to ensure that the insurance plan provides comprehensive financial protection,” adds Narukar.

It is essential to buy insurance for your parents well in advance, before the age bar kicks in. The only way to avoid both premium and coverage shocks is to buy early. ”I would recommend getting health insurance for your parents in their early 50s while they are still able to get regular health insurance plans, not senior plans. This allows them to take advantage of better coverage, lower premiums, and minimal waiting periods. It also allows you to add on top-ups later when you are aware of health changes,” says Kunal Varma, CEO and Founder, Freo.

Ways To Keep Under Control 

Since with age the premiums will get higher, there are ways in which you can reduce the given premium, yet ensure adequate coverage. One is a deductible, where the insurance kicks in after a certain amount. So, if you have a deductible of Rs 5 lakh, your insurance will kick in only after your bill crosses Rs 5 lakh. The first Rs 5 lakh has to be paid from your own pocket.

The other is co-pay. For a co-pay of 20 per cent, you need to pay 20 per cent of the bill amount, while the remaining 80 per cent is paid by the insurance company. In both these cases, the premium reduces substantially, and you can still have adequate coverage for your elderly parents.