Covering the twilight years with health insurance coverage

Growing old is never easy, but it can be made more secure if covers their recurring medical expenses with a well-tailored medical insurance. Finding a suitable policyfor senior citizens can be a tricky as the limited life expectancy added with late date of entry inflates the premium value.

The key question in this regard lies in answering the question, “Can one buy a decent health insurance at the age of 60 or above?”

There answer is certainly positive, but one needs to gauge out some details before going in for senior citizen coverage

1)      Entry age: This is the most important aspect to take into consideration. Some companies limit the entry age of a policy rendering one ineligible, while some others provide provision for entry at maximum age. Normally the age bracket for senior citizens eligible for coverage is set to 60-80 years.

2)     Coverage against pre-existing diseases: This is another vital aspect to take into purview for senior citizens. Normally coverage against pre-existing diseases is offered after 1-2 years after one takes the policy. The timeline can differ from one company to another. It is also advisable to read between the lines to ensure that the pre-existing diseases are taken care of. Some companies do not provide coverage against some critical illness like AIDS.

3)     Amount of premium: If you are looking to acquire coverage for your parents, there is always a chance that the premiums will be on the higher side due to the late date of entry. Additional premiums are levied if the insured person has a pre-existing disease.

4)     Sum assured: Those with limited knowledge about the intricacies of medical coverage often goes wrong in this part. As the premium amount is directly proportional to the sum assured, people tend to thread in the lower margins here. This can be a grave mistake to have a lower sum assured. Taking into purview the ever-increasing medical costs, it is necessary to have a balanced sum assured. Under family-floaters, the math of co-payment in premium comes into play as well.

5)     Bonus if no claim is made: Though the medical policies are taken to cover against diseases and illness, one normally doesn’t want to face the scenario where they have to actually use the provision. It is important to keep a keen eye on the bonuses, which can be accrued if no claim is made during the policy tenure. Normally, the no claim bonuses are levied at a rate of 5% to 30% on sum assured.

Apart from these key facets, one should have a better understanding of the renewal age parameters and the tax benefits available on the premium paid.