10 Mistakes to Avoid When Buying Health Insurance for Senior Citizens

Senior citizens have unique health requirements distinct from those of younger individuals. Additionally, the cost of medical care for senior citizens is notably higher. If you are a senior citizen or considering purchasing a health insurance plan for your elderly parents, you certainly wouldn't want to see years of hard-earned income spent on hospital bills. Many health insurance providers have introduced specialised plans tailored to meet the specific needs of senior citizens.

While it's possible to buy a family floater health insurance policy for the elderly, it is recommended to choose a senior citizen health insurance policy or an individual health insurance policy due to the significant impact on the premium you'll pay. Furthermore, policies designed for senior citizens offer additional benefits that are not typically included in regular health insurance plans.

Here Are 10 Mistakes to Avoid When Buying Health Insurance for Senior Citizens:

1. Overlooking Premium Comparison and Policy Details

A critical mistake to avoid when purchasing health insurance for senior citizens is not to compare premiums charged by different insurers for the same features and benefits. Given the significant cost of senior citizen health insurance policies, there can be a substantial difference in premiums across insurers. Using health insurance premium calculators available on insurance company websites is a practical way to determine the exact premium amount, considering relevant add-ons and riders.

2. Not Choosing the Right Insurer

Ignoring the importance of thoroughly evaluating the claim settlement ratio and claim settlement process of the insurer is another common mistake to steer clear of when purchasing health insurance for senior citizens. While many individuals concentrate on policy features, benefits, and premiums, they often overlook crucial factors like the efficiency of the claim settlement process and the insurer's claim settlement ratio. Failure to prioritise a health insurance company with a quick and easy claim settlement process and a good claim settlement ratio can help in successfully settling your claims when needed.

3. Opting for Inadequate Sum Assured

A prevalent mistake in the purchase of health insurance for senior citizens is opting for the minimum sum insured provided by the insurer to save on premiums. However, this approach may prove insufficient to cover the diverse medical requirements associated with old age. Considering the higher costs of medical treatments for senior citizens due to the intricacies of health conditions, it becomes crucial to calculate the appropriate sum insured based on potential medical needs. Failing to secure a sufficient sum insured undermines the purpose of acquiring health insurance, as you would only receive coverage up to the chosen amount, leaving you to manage additional funds for any exceeding medical expenses.

4. Not Considering the Premium After Retirement

Health insurance companies raise policy premiums based on the age of policyholders. While some companies provide low-premium health policies for those under 60, they may substantially increase premiums after individuals transition into senior citizenship. Continuing a costly policy during retirement can be challenging for seniors. Therefore, the optimal approach is to explore methods to reduce policy premiums before retirement. Additionally, if needed, individuals can use the portability option to switch insurance providers, ensuring flexibility and potential cost savings in managing health coverage during their golden years.

5. Overlooking the Co-payment Clause

Neglecting to carefully review the co-payment clause in the policy is a critical mistake when purchasing health insurance for senior citizens. Co-payment, whether a fixed amount or a percentage of the claim, requires the policyholder to contribute from their own pocket. The insurance company determines the co-payment amount, varying for different medical services. While many senior citizen health insurance plans include a co-payment clause, some insurers offer plans without this provision for a slightly higher premium. It is essential to thoroughly understand all the policy details before purchasing to prevent potential disputes later on.

6. Not Considering the Deductibles

Typically, individuals make the mistake of choosing a plan solely based on its premium. However, they later end up dissatisfied during the claim settlement process, as the coverage only handles a portion of the expenses, leaving the insured responsible for covering the remaining amount personally. When purchasing an insurance plan, it is important to assess your capability to cover deductibles in the event of a health emergency. If covering deductibles is a challenge, opt for a plan with lower deductibles instead.

7. Not Checking the Maximum Age Condition for Policy Renewal

Some health insurance policies may impose an age limit, preventing lifetime renewal. It is crucial to steer clear of such policies, as you might face difficulties obtaining health coverage when needed most, especially as you age. Before choosing a policy for your retirement, be sure to check the maximum renewal age it offers. It is advisable to choose a policy that provides lifetime renewal options and locks in policy premiums after a specific age.

8. Not Including Critical Illness Cover

Daily health challenges and the financial strain caused by high treatment costs can be significant for families. As age increases, the likelihood of encountering critical illnesses such as heart stroke, diabetes, paralysis, kidney failure, and cancer also rises. The expenses associated with treating these conditions are considerably higher than those of regular medical treatments. Although many health insurers don't include critical illness cover in their basic health insurance plans often offer it as an add-on to the base policy. To ensure financial protection against such serious illnesses, it is essential to invest in a critical illness cover by slightly increasing the premium on your basic health plan. This additional coverage is highly valuable and provides crucial financial security. Hence, Not including critical illness cover in the policy can be a mistake when purchasing health insurance for senior citizens.

9. Neglecting Domiciliary Care Cover

Certain medical treatments for seniors may necessitate extended care at home, resembling hospital-like conditions. Doctors might prescribe domiciliary treatment when mobility is limited or if the required facilities are unavailable at a hospital. While some health insurers include domiciliary care in their basic health insurance plans, others offer it as an add-on cover, requiring a separate purchase with a slight increase in the premium. Given the significance of domiciliary care, especially for senior citizens, it is essential to assess your requirements and health conditions before buying a health insurance plan to ensure comprehensive coverage. Overlooking domiciliary care cover can prove to be a mistake in the future.

10. Not Checking Sub-limits on Treatment Claims

A key mistake to avoid when purchasing health insurance for senior citizens is not considering the sub-limits imposed by health insurance companies on the claim amount for specific treatments, such as high-cost procedures like eye or dental surgery. Sub-limits restrict the maximum coverage for certain treatments, and they can significantly impact the out-of-pocket expenses for policyholders.

To mitigate this risk, it is essential to carefully compare the sub-limits of various health insurance plans before making a purchase. Selecting a plan that aligns with your specific requirements and provides adequate coverage for treatments without restrictive sub-limits is crucial to ensuring comprehensive and effective health insurance coverage for senior citizens.

To conclude:

The diversity among health insurance policies necessitates careful decision-making to avoid future regrets. Opting for a dedicated senior citizen health insurance plan ensures maximum coverage at an affordable premium, tailored to the unique needs of elderly individuals. Avoiding the above-mentioned mistakes during the purchase process allows for effective comparison and selection of the most suitable policy. It is crucial to use online resources to check and compare various plans offered by different insurers, enabling individuals to make well-informed decisions that align with their specific health requirements. Choosing wisely now ensures peace of mind and comprehensive coverage for senior citizens in their healthcare journey.

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KETKI JADHAV is a Content Writer at PersonalFN since August 2021. She is an MBA (Finance) and has over seven years of experience in Retail Banking. Ketki specialises in covering articles around banking, insurance, personal finance, and mutual funds and has been doing it for over three years now.

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