Health Insurance Options for Pre-retirees

Posted on: Dec 14, 2023 | | Written by:

Health Insurance Options for Pre-retirees

Published on December 13, 2023. EST READ TIME: 1 minutes

Health conditions increase as you grow older, and a medical procedure can take away a chunk of your savings. Therefore, if you are a pre-retiree, you must take the necessary steps to plan your pre-retirement and retirement healthcare expenses wisely to avoid financial setbacks. Buying adequate health insurance is one of the best ways to secure your retirement funds against medical expenses.

A comprehensive health insurance policy can cover your hospital bills and associated expenses and help you keep your savings intact. However, before you buy pre-retirement health insurance, it is important to research and select a plan that matches your requirements and pocket. Here, we will share some important factors you must consider while choosing health insurance for your golden years.

Things to consider while buying health insurance for pre-retirees

If you are a pre-retiree looking to secure your health and finances with the right healthcare policy, the following tips can come in handy —

1. Buy health insurance early

If you are covered under an employer-sponsored health insurance policy, buy a personal healthcare plan at least 3 to 4 years before retirement. By the time you retire, the waiting period for pre-existing conditions will be over. This will help ensure continuous health insurance coverage and save you from financial woes.

2. Check your healthcare requirements

Before buying a health plan, consider important factors, such as your lifestyle, pre-existing conditions and family health history. This will help you choose a policy that matches your specific healthcare requirements. For example, if you have a pre-existing condition, choose a health plan covering the same.

3. Check policy coverage

Look for a health plan with wide coverage and multiple benefits. In addition to covering your hospital bills, the health insurance policy must cover pre- and post-hospitalisation expenses, home healthcare, daycare procedures, AYUSH treatments, etc. It is also wise to choose a plan with features designed specifically for senior citizens.

This will ensure better coverage and financial security during medical emergencies.

4. Choose affordable policy premiums

Select a health plan with affordable premiums. High premiums can cause significant financial strain when you have limited funds during your retirement years.

5. Check the list of network hospitals

Choose an insurer with a long list of network hospitals in the city. If there is a medical emergency, you can opt for cashless treatment and keep your retirement funds intact.

6. Buy critical illness cover

If there is a family history of critical illnesses, it is wise to keep critical illness cover handy. If you get diagnosed with a life-threatening condition covered under the policy, the insurer will give you a lump sum to help you manage your medical bills and other day-to-day expenses.

7. Check the co-payment clause

Some health insurance policies for senior citizens come with a co-payment clause. The clause states that you must pay a pre-decided percentage of your medical expenses from your pocket. Therefore, check the co-payment clause and choose a health plan with no or minimum co-payment.

8. Check the sub-limits

Before you zero in on a health plan, check for sub-limits or caps on certain medical services. It is wise to select a health plan with minimal sub-limits.

FAQs about health insurance for pre-retirees

1. Will the employer-sponsored health insurance policy cover my retirement healthcare expenses?

No, a group health plan or employer-sponsored health insurance is valid till the time you remain employed in the company. Once you leave the job or retire, your coverage under the group health insurance policy will cease to exist.

2. Can I take add-on covers with my health insurance policy?

If your insurance provider offers add-on covers, you can buy the ones that may come in handy. Remember that every add-on cover you take will increase the premium of your health plan. So, make sure you choose only the important ones.

3. Can I claim tax benefits on health insurance premiums?

Yes, under Section 80D of the Income Tax Act, senior citizens can claim a rebate of up to INR 50,000 on the premiums paid towards health insurance policies.

4. Can I include my family in my health plan?

If you buy a family health insurance plan or family floater, you can include your spouse and dependent children in the policy. In this case, one health plan will cover your entire family.

Conclusion

While health insurance is a valuable investment for all, it is crucial for pre-retirees and retired individuals with limited financial resources. A pre-retirement health insurance policy can help you cover your healthcare bills, both before and after retirement, and prevent financial woes during medical emergencies. With a health plan handy, you can opt for quality and timely treatment without worrying about paying the bills from your savings.

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

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