Health Insurance for Retirees: A Complete Guide

That is why, it is of utmost importance that we have a strong health insurance policy in place, both for the elderly in our family: like parents and grandparents, and ourselves when we grow older. Doing this ensures that a lifetime of savings are not drained rapidly in treatment costs just when we’re relaxing and enjoying life.There are many health insurance policies available for retirees, and you must choose wisely. Read on to find out everything there is to know about health insurance options for retirees.

First, let us dispense with the myths that are usually associated with health insurance policies for elderly people.

Your employer’s group insurance is sufficient

If you’re an employee working in an organization, then it is likely that they have provided you with a group health insurance policy that covers your entire family, parents included. But these group insurance policies are not very robust when it comes to comprehensively securing your parent’s health. A standalone old age health policy is a must if you want to have excellent health coverage for your elderly.

Pre-existing health conditions

Yes, it may be true that most health insurance policies do not cover pre-existing diseases or there is a long waiting period for the same. But it is also true that there are still many insurance policies on the market that are specially designed for senior citizens and have waiting periods as low as 1 year for pre-existing diseases.

Health insurance for the elderly is expensive

This may not be a myth, because health insurance for older people is costlier than that for younger persons, because older people are more likely to fall ill. But what everyone fails to see is that the higher premium paid is still lesser than the out of pocket expenses that one will have to pay for treatment costs if there is no policy at all. So, it is always better to pay for health insurance, even when it is slightly expensive, than to pay for costly treatment.

Medical History

Your medical history and pre-existing conditions must be disclosed truthfully and completely when you’re buying health insurance, especially for senior citizens. Failure to do so will eventually lead to your claim being rejected when you need financial assistance the most.

Filling the proposal form accurately

Again, it is very important not to withhold any information while filling the proposal form. Sometimes, people unknowingly omit certain key information when applying for insurance and this can lead to rejection of your application. Fill the form carefully and do not skip on any details.

Pre-policy medical check-up

Retirees are especially subjected to a pre-policy checkup when they apply for insurance. Tests like Liver Function tests, Kidney Tests, Lipid Profile etc. are done to rule out pre-existing conditions.

What to do if your proposal form is rejected?

You followed our guide, were honest and forthcoming in your application, but still, your proposal was rejected. Don’t worry, this happens sometimes. You have two options:1) You can approach the insurance company and ask their panel of doctors to re-evaluate your medical tests. If they feel that they can reconsider the decision in your favour, they’ll accept your application and you will be happily insured.2) However, if the above doesn’t work, you can immediately approach a different health insurance company. You can submit your test results from the previous application within 30 days if you don’t want to go through all the tests again.

Advantages of old age health insurance

• Access to high quality treatment at hospitals across the country.
• Cashless payment facility
• Annual health checkups
• Tax benefits on premiums

Exclusions in health insurance plans for retirees

What is not covered in health insurance for the elderly? Let us take a look.

• Treatment costs for pre-existing diseases or conditions within the waiting period cannot be claimed.
• Any disease contracted within 30 days of signing the policy.
• Only allopathic treatment is covered, alternative treatment like homeopathy and ayurveda are not covered in health insurance.
• Self-inflicted injuries are not covered.
• Ailments arising out of alcohol or drug abuse are not covered.
• Expenses incurred for lenses, spectacles and dental implants cannot be claimed, except if required after an accident.
• Joint replacement surgery will have a waiting period of at least 2 years.
• Injuries due to catastrophe like war won’t be covered.
• Plastic surgery expenses won’t be covered.

Health insurance for the elderly is one of the best things that you buy for the elderly in your house, or yourself when you’re older. It is a worthy investment because it safeguards the people you love from falling into a financial slump due to costly medical treatment. The fact that older people will, some day or the other, contract certain systemic conditions only cements the belief that a good health insurance policy is a must for them.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.