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What is the Right Time to Buy a Senior Citizen Health Plan?

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Remember how you waited till a certain age to get your driving license or cast your first vote? Well, fortunately when it comes to health insurance, you don’t have to wait. Imagine you are 55 and waiting another five years to buy the Senior Citizen Health Insurance plan. What will happen if you get hospitalised at 57 with a condition you have been suffering from for the last three years? It will mean substantial financial losses, that too, at the time when you are approaching your retirement phase. Let’s learn about when to buy health insurance and why buying the health plan that covers your needs at the right time is extremely crucial.

What is Senior Citizen health insurance?

After the age of 60, we become more vulnerable to ailments and infections because of low immunity. As a result, our medical needs increase. Considering the high costs of medical procedures and treatments, it becomes crucial for senior citizens to have a health insurance policy specially designed to cater to their age-related ailments. Such a plan is called senior citizen health insurance. It provides comprehensive coverage and keeps them financially protected during a medical emergency.

Should You wait till 60 years of age to Buy a Senior Citizen Health Insurance Plan?

Not at all. The earlier you buy health insurance, the better. Here are the reasons why buying a health insurance plan early makes sense —

• Lower premium:

Age and health status are important factors when deciding the premium of a health plan. If you buy at an early age with no medical conditions, the insurer will consider you a low liability and, hence, charge a lower premium. As you age and your health status might not look great, you are more likely to file claims. So, the premium is more.

• Completion of waiting period:

Health plans have an initial waiting period of 30 days from the date of policy purchase and for pre-existing and other specific diseases. When you buy a healthcare plan early, you are less likely to file claims and can easily complete the waiting periods. However, in the case of older people, you can’t predict their health conditions and expenses for any medical emergencies during the waiting period, which has to be borne by the policyholder.

• No pre-policy medical check-up:

For younger people, there’s no mandatory medical check-up before buying the policy. However, people above the age of 40-45 have to undergo medical check-ups, and the premium is calculated based on the medical report.

• Earn cumulative bonus:

Insurance providers offer cumulative bonus for each claim-free year. As younger persons are less likely to raise claims, they can accumulate the no-claim bonus over the years. This cumulative bonus can be used to either enhance the sum insured at no extra cost or get a discount on the premium.

• Financial security:

The sooner you buy insurance, the more you can save on medical expenditures. A health plan provides financial security against medical emergencies and keeps your savings intact.

What to Consider While Buying a Senior Citizen Health Insurance Plan

While purchasing a health insurance plan for senior citizens, here are some things you must remember —

1. Sum insured:

When you raise a claim, the sum insured is the maximum amount you will receive from your insurer. While choosing the sum insured, consider your health status and age to ensure you have complete financial protection and don’t have to pay much from your pocket.

2. Comprehensive and specific coverage:

The plan must cover expenses of hospitalisation, pre- and post-hospitalisation, daycare procedures like cataract surgery, dialysis, chemotherapy, domiciliary care, emergency ambulance, AYUSH treatments, etc. It should also cover the specific and typical medical needs of the elderly.

3. Waiting period for pre-existing conditions:

Look for a plan that covers pre-existing diseases or has a minimum waiting period. Treating pre-existing conditions can be expensive, and you cannot make any claim during the waiting period.

4. Network hospitals:

Availing cashless treatment in emergencies will save you from financial burden because you don’t have to pay upfront for getting treated in a network hospital. So, choose an insurance company that has a strong network of hospitals.

5. Entry age:

Look for plans that have no restrictions on entry age and also offer lifetime renewability. The need for health insurance is more for senior citizens than younger people because of their vulnerability to falling sick.

6. Co-payments and sub-limits:

Most senior citizen health plans come with a co-payment clause, where you have to pay a certain percentage of the claim amount, and the insurer will cover the rest. The sub-limit is a cap on specific procedures or expenses. For instance, cataract surgery may have a sub-limit per eye, or there may be a capping on the room rent up to which the insurer will pay. Check all these conditions before buying a senior citizen healthcare plan.

Conclusion

If you are wondering when to buy health insurance, the right time is as early as possible. Staying financially prepared against medical exigencies can save you from financial and emotional woes. Choosing a comprehensive health insurance plan for senior citizens can give them peace of mind in their golden years.

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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