Sunday, 18 October 2020

Senior Citizens Health Insurance Policy in India - Explained

"Health Insurance Policy for Senior Citizens in India"

If we are buying a policy for our parents. "What is the Process? What are the Main Precautions in it?" and What are the steps in buying? First of all, Focus on your main objective of buying this policy? What is the reason?
Senior Citizens Health Insurance Policy in India - Explained

In Financial Planning, Mainly we buy Health Insurance to protect our SAVINGS in a medical emergency.

Why do we need Health Insurance?

Every family plan for their monthly expenses. Annual Expenses for Children education are nearly fixed Cashflow for House EMIs is planned, Future Savings are planned, Your Retirement is planned. Only an emergency or contingency can derail this financial planning. Such an emergency can damage our SAVINGS Due to this main reason, we buy tools like Health Insurance or Term Insurance.

We buy motor insurance so that in case of any damage, we need not pay out of our pocket. In this event, My savings are protected and loss is taken care of by the insurance company.

If we treat the Human body as a Vehicle / Car Over a period of time, the Human body weakens due to age and attrition. This vehicle is getting depreciated in strength with age. Suspension, Bushings, ball joints, and struts are common failures in older cars. As people age, there are numerous health issues like Cataract, Knee pain, Prostate, BP, Diabetes, etc.

As a family, first of all, it's our parents who need health insurance. If someone's parents are Govt Employee or have some sort of medical reimbursement facility, They can still ignore the necessity. They can buy a small policy for cashless facility. If there is no such backup plan, then we must immediately plan health insurance for parents.

Health insurance for Senior Citizen

Now, Let's discuss the health insurance plans available for Senior Citizens in India. Here, we will share a secret/misconception with you There is no such word like Senior Citizen, which exists in Health Insurance in India. Technically, there is no presence/usage of the word "SENIOR CITIZEN" in policy terms and conditions.

As an example, Let's take the case of popular adhesives like Fevicol or FeviStick. As a marketing strategy, Let's assume Fevicol launches a product for Art Students. The promote that product among Art Students showing benefits of use. There is a different product range for Carpenters Different campaigns of products for professional artists. Basic product or ingredient (adhesive) remains the same in all.

Similar, Health Insurance Policy for 18 years old or 35 years old or 45 years old or 75 years old, technically remains the same for all ages. Due to adverse health, Practically Companies try to avoid Senior Citizens. Biggest example is, So called Govt sector companies have minimal options for people above 60 Normally People compare a strong or weak company as per brand value, Turnover or Claim Settlement ratio. Best company is the one, which follow a fair business practice to give a full fledged policy to all age groups without any conditions.

A good company must be brave enough to give a similar policy for age 19, 29. 50, 60, or 70. That means this company wants to give the policy to a healthy group till 60 and avoid a bit unhealthy group above 60. This is not a win situation for the company and end-user. If you start planning today, then you will immediately focus on buying policy for parents. Because the probability of their illness is highest in the family.

It's normal for most companies to avoid policy for senior citizen as the chances of claim is high at their age. What is fair business practice? The company can issue a full-fledged policy by taking a little extra premium from them. So change your mindset of looking for a special senior citizen policy. There is no such thing. For people above 60-65, their policies may have some conditions in few companies. It's tough to clear medical checkup at this age Special products are available for 60 to 75 group without any medical checkup For age 55, 59, 65, 74.

Today, Policies are easily available without any pre-insurance medical checkup. One should avoid such policies, Still, if you are buying, Kindly declare all pre-existing disease or previous medical history for sure. If you declare every past medical history, you will face the least problem in claims in the future. Even the company will honor the claim by respecting these declarations.

There are excellent products available for senior citizens at any age. Few companies are avoiding policies, that maybe their business philosophy or vision. They may have underwriting risks.

There are five different types of policies in India

Normal Policy

With full benefits without any sub-limits etc. A compulsory medical check is required. Premium will be a little expensive.

Little cheaper than Normal Policy
It won't ask for a medical checkup. There will be a co-payment of 20% in each claim. So in case of a claim, you will get an 80% claim amount only. Rest, you have to pay. But such policies are issued quickly within 2 days. Such policies can be given to people with BP or Diabetes problems. Pre Existing disease waiting period will be different.

Normal policy, as premium, is high
At this age, so company will co-payment after age 65 in instead of a normal premium hike. If a person bought a policy at the age of 55, then co-payment will be applicable as he turns 65. But, you have two options here. Either you accept the co-payment or you can waive off co-payment by paying some extra premium.

So, it’s a business proportion. Either pay extra and take a 100% claim or reduce your premium by taking 20% co-payment.

Such benefit shows the excellent attitude of the company. It is your decision to choose either of them. There is no compulsion. The decision to opt for co-payment or not is totally yours.

20% co-payment policy
With medical checkup if your age is more than 65

When Your Policy is after age 60

After age 61 and the sum insured is more than 5 lac, there will be a co-payment of 20%. In this option, if you choose 2 or 3 or 4 lac insured, there will be no co-payment, but room rent limits will be applicable

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