What is Senior Citizen Health Insurance? – Key Consideration, Features, Tax Benefits

India’s 60+ years old population is booming– from 149 million today to a projected 347 million by 2050! (UNFPA India Ageing report, 2023). The growing health risks associated with old age emphasise the growing need for a senior citizen health insurance policy. This can protect them against unexpected medical costs when retirement resources are low.

What is Senior Citizen Health Insurance?

Senior citizen health insurance plans in India are designed for people over 60 years old. They cover hospitalisation expenses, including room charges, doctor fees, medicines, and other medical bills. Unlike regular health insurance plans, senior citizen plans often don’t require medical tests before purchase, recognising the higher likelihood of pre-existing conditions in older adults.

Features and Benefits of Health Insurance Plans for Senior Citizens

The best health insurance for senior citizens offers unique features such as:

• Tailored coverage: These plans address health concerns more common in seniors, like cataract surgery or joint replacement.
• Pre-existing condition coverage: Most senior citizen health insurance plans cover pre-existing illnesses such as diabetes, hypertension, and heart ailments. However, the waiting period for coverage may vary between insurers.
• Lifetime renewability: Many of these plans offer lifetime renewability. That means you can renew your policy year after year, guaranteeing coverage throughout your entire life.
  

The above features benefit policyholders with:

• Financial security: Tailored coverage and coverage for pre-existing conditions help avoid dipping into savings or relying on family for medical bills.
• Reduced stress: Knowing medical expenses are covered reduces the financial worry associated with illness.
• Improved treatment options: Senior citizen health insurance grants access to quality medical care in your budget. Some plans also encourage preventive care through check-up coverage.
• The freedom to age well: The peace of mind regarding healthcare costs allows you to focus on healthy living and enjoying your golden years. Financial security further empowers you to make choices about your healthcare without financial limitations.

Critical Factors to Consider When Buying a Senior Citizen Mediclaim Policy

Consider the following to buy the best health insurance for senior citizens:

• Entry and exit age: Look for plans that allow coverage up to a higher age, like 85 or 100, ensuring longer protection.
• Sum insured: Prioritise high coverage amounts over lower premiums for comprehensive health cover, especially considering high medical expenses. 
• Network hospitals: Opt for insurers with extensive hospital networks for cashless treatment, easing financial burden during emergencies. 
• Inclusions beyond hospitalisation: Ensure comprehensive health cover, including ambulance, in-patient, and out-patient expenses, modern medical treatments, and medical expenses before and after hospital stays.
• Claim settlement process: Prioritise a hassle-free claim process. Research the insurer’s claim settlement ratio and read reviews for insights into the efficiency of their claims process. Cashless claims ease financial stress by eliminating the need to make upfront payments at the hospital.

Additional benefits:

Evaluate available riders based on specific health insurance needs, such as coverage for critical illnesses or accidental injuries. Consider adding them to enhance policy coverage.

Tax Benefits for Buying Health Insurance for Parents

If you’re exploring senior health insurance plans in India, there’s some good news: you can also enjoy tax benefits.

You get a deduction if you make premium payments for health insurance for parents:

• For parents below 60: up to ₹25,000/year.
• For parents above 60: up to ₹50,000/year.

Challenges in Getting the Best Health Insurance for Senior Citizens

Here’s how you can overcome the significant challenges in getting health insurance for parents:

• Premium: Insuring senior citizens involves higher risk for insurers, hence higher premiums. Choose long-term plans and get insurance early to reduce this risk.
• Waiting period: It can take up to 2-3 years before coverage kicks in for senior citizen health insurance. Compare health insurance online to find plans prioritising immediate coverage and shorter waiting periods (often 30 days or less for pre-existing conditions).
• Medical tests: Traditional senior health insurance often requires medical exams, which can impact premiums or even lead to rejection. Look for plans with guaranteed acceptance or simplified underwriting, which skip medical exams.
• Pre-existing diseases: Insurers may be hesitant to cover individuals with pre-existing medical conditions, potentially leading to policy rejection. Maintain medical records and provide accurate information during the application process to reduce the likelihood of non-issuance. Alternatively, focus on plans that cover pre-existing conditions like diabetes, kidney disease, etc. 

Documents Required for Senior Citizen Mediclaim Policy Claims

You will need to submit any one document under each category to make a claim:

• Age proof for entry age verification:
  • PAN Card
  • Voter ID Card
  • Aadhaar Card
  • Passport
  • Driving License
  • Birth Certificate
    
• Address proof for communication purposes
  • Driving License
  • Ration Card
  • PAN Card
  • Aadhar Card
  • Utility Bills (telephone, electricity, etc.)
  • Rental Agreement (if applicable)
    
• Identity proof:
  • Passport
  • Voter ID Card
  • Driving License
  • Aadhar Card
  • Medical Reports (if requested)
  • Passport-Size Photo
  • Duly filled and signed proposal form

Key Takeaways

Getting health insurance for parents is a wise step towards ensuring their well-being and financial stability. With rising healthcare costs and limited income sources, having the right coverage becomes vital.