Buying health insurance for senior citizens: How to lower your premium?

Seniors should note to check and compare the current premium rates of different insurance providers. This review will help them understand if their insurance provider levies unreasonable premiums

As healthcare costs continue to rise, senior citizens in India face significant challenges in affording health insurance premiums. Though the Irdai has capped annual premium hikes for senior citizens at 10 per cent, the constant hikes could affect their limited savings. However, seniors can effectively lower their insurance premiums by employing smart strategies.

 

“To begin with, they can explore the higher deductibles option. This measure can help slash premiums by around 10-20 per cent. However, I would remind seniors that choosing higher deductibles means paying a fixed amount out-of-pocket before the coverage actually comes into force,” said Shilpa Arora COO and Co-founder of Insurance Samadhan.

 

 

“They can also consider the copayment option, where they will pay 10-50 per cent of treatment costs. So, for instance, if you opt for a 10 per cent copay on an Rs 2 lakh hospital bill, you will pay Rs 20,000, while the insurer will cover the remainder. Besides these strategies, seniors can combine their base plan with a top-up to avail themselves of extended coverage at relatively lower costs than purchasing a new policy,” Arora said.

 

Additionally, senior citizens can use government schemes like Ayushman Bharat Pradhan Mantri Jan Arogya Yojana to boost their financial protection. PM-JAY offers health insurance coverage of Rs 5 lakh to senior citizens aged 70 and above, helping them to avail of quality treatment without worrying about costs. Some insurers also offer discounts to policyholders with a no-claim bonus record and good health. This benefit can help lower premiums or increase the sum insured.  READ: With health insurance premiums rising, here's how policyholders can save

 

“Rising premiums often lead to difficult decisions about whether to retain or reduce coverage.

A practical and effective solution to this dilemma lies in financing health insurance premiums. By opting for financing, senior citizens can ensure uninterrupted access to high-quality healthcare without bearing the immediate burden of paying hefty premiums upfront. This approach not only alleviates financial stress but also provides the flexibility to manage expenses more efficiently, enabling seniors to focus on their health and well-being without compromising their financial stability,” said Hanut Mehta- CEO and co-founder at Bimapay Finsure.

 

Points to keep in mind while buying health for senior citizens

 

Coverage and benefits: Ensure the policy covers a wide range of medical expenses, including hospitalisation, surgeries, and day-care procedures.

 

Waiting periods: Understand the waiting period for pre-existing conditions, which can vary from 2 to 4 years depending on the plan. Some plans have a general waiting period before coverage begins.

 

Pre-policy medical check-ups: Some plans require medical check-ups before policy issuance, especially for older applicants.

 

Compare premiums: Evaluate premiums from different insurers to find the best value.

 

No-claim bonus: Look for policies offering a no-claim bonus, which can reduce premiums upon renewal.

 

Claim settlement ratio: Always check the claim settlement ratio of insurance companies to ensure the right policy. One with more than 95 per cent of CSR rate is highly recommended.

 

Network hospitals: Ensure the policy includes a broad network of hospitals for cashless treatment.