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Health Insurance After Retirement: Key Benefits & Tips

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Planning your life post-retirement is extremely crucial for your physical, psychological, and financial health. Working for almost four decades, you will suddenly find yourself with a lot of time. To ensure that you are engaged, you would need to pick up hobbies, and to keep your savings safe, you would have to keep ailments and injuries away. But this is life; it knows how to throw in a few surprises. Having health insurance after retirement with a wide scope of coverage is quite important, and so is knowing what schemes the government has in place for senior citizens. Read on to learn more about them.

Importance of health insurance in old age

Old age is not a smooth ride, especially when it comes to health. Our weak immunity makes us vulnerable to ailments and injuries, increasing our medical needs and expenses. With fixed monthly incomes (like pension) and savings, healthcare expenses will be difficult to afford out-of-pocket. That’s where a health insurance policy acts as a walking stick – easing your financial burden by covering the medical costs. It not only makes healthcare affordable but also lets you access quality medical care and treatment without worrying much about costs. In addition, health insurance offers regular screenings and check-ups, which can help in early diagnosis and treatment of potential health issues. Having critical illness insurance comes in handy since elderly people are at risk of critical ailments like cancer, stroke, kidney failure, paralysis, etc.

Top 3 reasons to have health insurance after retirement

The top 3 reasons to have health insurance after retirement are –

1. Rising Medical Costs:

Health insurance can help combat rising healthcare expenses. How? By covering your hospitalisation expenses and reducing your financial burden. With age, medical expenses increase due to chronic conditions, regular screenings, and hospitalisations. Health insurance helps cover all of these, reducing your out-of-pocket expenses.

2. Financial Security:

If retirement funds are spent on hospital bills, your savings will soon deplete, considering medical inflation and the need for regular medical attention during old age. With health insurance, you can handle medical emergencies without any worry. You don’t have to depend on family or friends for footing the bills as insurance provides financial protection for a range of medical services. It will also ensure you receive the necessary medical treatment and that your retirement funds are meant for daily living expenses and not unexpected medical bills.

3. Peace of Mind:

Let’s say you meet with an accident and require emergency hospitalisation. Can you focus on recovery if you start thinking about the medical bills? Well, health insurance can give you peace of mind by taking away your financial worries. All your family needs to do is inform the insurer about hospitalisation, and the rest will be taken care of.

Tips for buying customised health insurance for old age in India

While buying health insurance for old age, there are certain things that you must consider –

• First, assess your health requirements. Then, explore the plans available and compare them based on coverage, cost, waiting periods, network hospitals, inclusions, and exclusions. This will help you buy the plan that suits your needs and budget.

• Ensure the policy has an adequate sum insured to cover age-related ailments, as you may require regular medical care.

• Check if the policy covers chronic diseases and age-related health issues.

• Look for plans which have shorter waiting periods or waiting period waivers. Pre-existing conditions and specific diseases are covered after a waiting period.

• Senior citizen plans come with a copay clause, which means the policyholder has to pay a certain percentage of the claim amount while the insurer pays the rest. Check the copay before buying the policy.

• Before buying the policy, read and understand the policy’s terms and conditions. In case of any doubt, contact the insurance provider.

• You may need to undergo a medical screening to determine the premium amount based on the reports.

Which government schemes offer health insurance to senior citizens in India?

The government schemes offering health insurance to senior citizens in India are –

1. Pradhan Mantri Jan Arogya Yojana (PMJAY):

Senior citizens (aged 70 and above) not covered under any health insurance policy are eligible for PMJAY. This is the largest government health insurance scheme providing medical coverage of up to Rs 5 lakhs per family per year. The beneficiaries of PMJAY are the bottom 40% of the population, i.e., families below the poverty line.

2. Senior Citizen Health Insurance Scheme (SCHIS):

This scheme covers hospitalisation expenses for people above 60 years of age. Coverage includes hospitalisation, pre- and post-hospitalisation, surgeries, medications, doctor consultations, etc. Senior citizens who don’t have access to any other health insurance coverage can apply for SCHIS. The policy offers a sum insured of up to Rs 5 lakhs per individual.

3. Central Government Health Scheme (CGHS):

The CGHS is available to current and former central government employees and their dependents. The coverage benefits include hospitalisation expenses, including medications and surgeries, daycare procedures, domiciliary care, AYUSH treatments, consultation fees, etc.

4. Rashtriya Swasthya Bima Yojana (RSBY):

Senior citizens below the poverty line are eligible for RSBY. The scheme provides coverage of Rs 30,000 per year per family by paying an annual premium of Rs 30.

5. Employees' State Insurance Scheme (ESIS):

This scheme is available to senior citizens who are employees in the organised sector and their dependents. The beneficiaries’ wages should not exceed Rs 21,000 per month, but for people with disabilities, this ceiling is Rs 25,000 per month. Benefits include medical coverage for the insured and his/her family, death and disability benefits, and sickness benefit of 2 years if the insured suffers from any malignant and long-term ailment.

Conclusion

Don’t let medical expenses eat away your retirement funds. When health insurance can take away this financial burden from you, why not invest in it and keep your savings intact? Research and compare plans to find the one that meets your specific needs and preferences.

FAQs

1. What is the premium amount of senior citizen health insurance?

The cost of senior citizen health insurance depends on several factors, such as the age of the insured, medical history, type of plan, etc. Generally, senior citizen plans cost more than regular health plans as senior citizens are vulnerable to health issues, and the probability of filing claims is high.

2. Do senior citizen health plans have any tax benefits?

Yes. As per the Income Tax Act, senior citizens are eligible for a tax deduction of up to Rs 50,000 on the premium paid towards health insurance.

3. Are there any government health insurance schemes for senior citizens?

Several health insurance schemes by the government are meant for senior citizens. While some are specially meant for the underprivileged, others are available for those above the poverty line.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

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How to Manage Medical Expenses after Retirement

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