Over the years, medicine has made tremendous advancements leading to an increase in life expectancy. The flip side – increase in the cost of medical treatment, and even more so with advancing age, making health insurance for senior citizens a must-have.
While you may already have a health insurance plan, are your parents covered? The older the person, the tougher it is to get a cover. If you’re getting your parents a health insurance cover, here are 5 factors to keep in mind;
Health Insurance for Senior Citizens
1. The Age factor
The biggest difference (and barrier to entry) between health insurance for senior citizens and health insurance for younger people is the age of the person insured. Many insurance companies don’t insure your parent(s) if they are at a certain age, which varies between 70 and 80 years. Some companies may allow entry, but may not allow renewal beyond 85-90 years.
2. Pre-existing diseases and medical check-up
While most insurers have a waiting period of 24-48 months before covering pre-existing diseases, there are some who have either reduced this time to 12 months or even nil. Many insurers also stipulate a medical check-up before approving the policy, while some waive this requirement. The flip side? The premium is likely to be higher and/or insurance coverage amount could be lower.
3. Exclusions and co-payment clauses
Like regular health insurance, every expense item can have an exclusion (not covered by policy) and/or co-payment clause (where expenses are partly borne by the insured person) attached to it. From the room of choice to any specialist care/treatment needed – each line item in the hospital bill is likely to have one of the two clauses attached to it. Co-payment is usually compulsory for senior citizens’ health insurance, though the percentage can vary between 20-40% of the item/bill.
4. Group coverage by employer
It is a good idea to check the coverage offered by your employer – while spouse and children are covered, some allow coverage for parents as well. The advantage? No payment of premium, and several pre-existing conditions would be covered from Day 1. However, irrespective of employer cover, always have a personal secondary cover to avoid issues when you leave that job.
5. Tax Benefit
Premium paid towards health insurance for self and parents are eligible for a tax deduction under Section 80D. If your parents pay the premium, they can claim a deduction according to their age (higher for Senior Citizens). If you pay the premium on their behalf, you are eligible for a tax deduction in addition to that for the premium paid for your own health cover. If your parents are less than 60 years of age, the limit is Rs.25,000 and if they’re more than 60 years old, the limit is Rs.50,000 – this was increased in Budget 2018.
Bottom line: When getting a health insurance cover for your parents, the sooner the better. The more you delay, higher the chances of not getting one at all, or at a very high premium. Even then, the extra cost will be worth the financial relief you get in a medical emergency.