Senior Citizens – Should They Buy a Health Plan?

Insurance companies are less than willing to offer medical insurance to senior citizens, owing to the simple fact that chances of claims increase due to increasing risk of falling ill as you age. An amendment to the IRDA 2009 guidelines enabled Indian citizens up to the age of 65 years to buy a medical insurance policy and get it renewed without any exit age, according to an article published in Money Today in July 2012. Insurers also have to state the reason for rejection in written.

Why Should Senior Citizens Get Health Insurance

Life expectancy has increased due to healthcare advancements but the cost of availing these services have also increased with rising inflation. Medical coverage becomes a necessity in today’s age if you want to avail the best services. If you are a senior citizen living off your pension, then it becomes all the more important to save yourself from future financial crises. However, healthy you may be, diseases can come knocking on anybody’s door. Don’t wait to fall ill to get yourself medically insured.

You might be covered under an employee’s health insurance plan of one your children but taking a personal individual policy can help you reap more benefits. Although premiums may be higher for senior citizens, there is a lot you can do to ensure lower premiums. Medical insurance plans do not cover pre-existing diseases and if they do, they charge an extra premium to cover the additional risk. Some insurers never cover pre-existing illnesses, while for others, the cover starts after a certain period of the policy having been taken.

How to Choose a Policy

You must choose a policy according to your current health and financial condition. You may also undergo a medical test to evaluate your needs. Insurers reward individuals with a healthy lifestyle with lower premiums. You can either take medical coverage that offers protection for specific diseases or you can take a normal medical insurance plan and buy an additional critical illness rider. Generally, the minimum cover that any plan provides is hospitalization and surgery costs. It is essential to read the policy documents carefully and choose a plan according to your needs.

You can also avail tax benefits of up to Rs 15,000 on premium payments under section 80 D of the Income Tax Act. Individuals who are paying premiums for their parents as well can avail tax deduction of up to Rs 35,000 (Rs 15,000 for one’s own policy and Rs 20,000 for parents’ premium payments).