Find Out About The Best Health Insurance Plans For Senior Citizens

It’s no secret that senior citizens usually spend a lion’s share of their money on health expenses. Appropriate health insurance can reduce these health expenses considerably. However, it is essential to know about the features of a good insurance plan for seniors before you choose a health insurance policy. Here’s what you need to know about the best health insurance plans for senior citizens. 

With worries about coronavirus and healthcare systems, it’s natural for senior citizens to be thinking about health insurance. Here’s how to go about it the right way.

Importance of Health Insurance for Senior Citizens

Healthcare is one of the largest expenses post-retirement. The older we get, the harder it is to reverse health complications and recover from illnesses. Once you’re retired your financial resources are limited. Quite simply, the less you pay out of pocket, the more money you have to live off of. Health insurance is a way of minimizing out of pocket expenses.

Features of A Good Health Insurance Plan

Top 6 Health Insurance Plans For Senior Citizens

From our study of health insurance policies in the industry, we’ve identified the following policies:

The advantages of these policies are that they have low waiting periods and offer lifelong renewability. Some of them have no co-payment while others offer good no claim bonuses. The policies address a range of insurance cover needs.

Reasons You May Not Be Eligible For Health Insurance?

Insurance Regulatory and Development Authority of India (IRDAI) mandates that anybody below 65 years of age should be eligible for insurance. However, companies can reject applications on certain grounds. One reason could be severe pre-existing conditions where the underwriter is not comfortable with the risks. The second would be the diagnosis of critical illnesses (either in the past or present).

What Can You Do Instead?

For senior citizens who are not eligible for a regular health insurance policy two options remain. The first option is to create a medical reserve from their retirement corpus. Large medical expenses can be supported by drawing down from the corpus. The limitation of a medical reserve is that it is difficult to replenish with limited income and if it’s exhausted you would have to dip into the retirement corpus. The second option is to be covered in a group insurance policy that their children’s employers offer. Many corporates offer health insurance policies that cover an employee’s family (including parents) with an additional premium.

Health insurance is a crucial safety net post-retirement. To know more about what policy is appropriate for you, talk to an insurance expert. If you are not eligible for a health insurance plan a financial planner could guide you on how to manage healthcare risks.

About the author

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Samyuktha Vibhu

Samyuktha Vibhu is a Certified Financial Planner (CFP) at ithought Financial Consulting LLP. She is passionate about personal finance, loves playing bridge, and is learning to become a yoga instructor.

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26 May, 2014

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