Senior Citizen Health Insurance
Senior citizen health insurance plan is a necessity, especially when you are planning to retire and live on pension or interest income from savings. A sudden medical emergency can result in a financial crisis. To avoid this, it is prudent to take a comprehensive senior citizen medi-claim insurance policy. These senior citizen health insurance policies are for people who are between 65 years and 80 years of age.
6 Factors to Consider While Comparing Mediclaim Policies for Senior Citizens
The amount of sum assured is generally lesser in the case of the public insurance companies that cater to policies of Rs. 1 to Rs. 2 lakhs. You can receive a cover of Rs. 15 lakhs to Rs. 20 lakhs from private insurance companies, but the premiums would be higher and also they may ask to make co-payments.
Co-payments decree that the pre-defined percentage of the amount of claim will be bored by the policyholder and the remaining sum will be settled by the insurer, a usual clause with many group health insurance plans. Despite the fact you might find an insurance policy to be affordable, it might not provide you with a complete coverage if it contains a co-payment clause.
Maximum Age to Renew:
A lot of insurance companies offer mediclaim policy for your elderly parents falling in the age bracket between 60 to 80 years; however, a few companies restrict the age of the policyholder to 69 years of age only. So, after you celebrate your 69th birthday, it will be harder for you to buy a health insurance plan for yourself. While some insurance companies such as Max Bupa and Apollo offer health insurance for senior citizens deprived of any age limit. The plan is usually issued for a period of one year and has to be renewed by making a payment of premium at the year end. The limits of age for renewal differ from insurer to insurer. Generally, it is 90 years.
Coverage of Certain Diseases:
If the senior citizen, who is to be insured, is suffering from any of the pre-existing illness, the disease will be covered by the insurance company after the completion of the period of one year or two years of the policy. There are a few companies that do not cover these pre-existing illnesses at all; so it is better to assess before you buy.
Certainly, in this case specifically, the insured will be comparatively older, hence it is significant that the plan you purchase has a low waiting period. This is in the case they have any current conditions that might not fall under the policy until the waiting period gets over.
Free look period is the time frame where the policy holder is allowed to terminate their insurance contract, if they do not agree with the terms and conditions of the policy or do not wish to proceed with the intended policy, without being penalized with surrender charges. Policy holders can exercise this option within 15 days of receiving the policy documents.
Benefits of a mediclaim policy for senior citizens:
- Hospital Expense Cover: Expenses incurred on a patient if the hospitalization (cashless treatment) is more than 24 hrs, including room charges, doctor fees, nursing fees, cost of medicine and drugs, etc.
- Day care costs which arise from use of special equipment or procedures like chemotherapy, dialysis, etc.
- Medical costs prior and post hospitalization provided the number of days is variable
- Ambulance charges for transporting the insured, subject to maximum limit
- Existing diseases are also covered, subject to terms and conditions of the policy
Tax Benefits of Senior Citizen Health Insurance
This health policy not only provides you with an assurance for health benefits when you might actually need them but also entitles you to avail tax exemption under section 80D of the Income Tax Act, 1961. You are eligible for an income tax rebate of Rs. 30,000 if you hold a mediclaim policy for senior citizens for your elderly parents. You can also avail am additional rebate of Rs. 5,000 for preventive health checkups annually.
If you’re still earning and also paying health insurance premium on behalf of your son or daughter, then you can avail an additional income tax rebate of Rs. 25,000. This means that you can avail tax deduction of max up to Rs. 60,000 under section 80D.