Importance of Health Insurance for Seniors Citizens

BHASKAR NERURKAR Head – Health Administration Team Bajaj Allianz General Insurance

Head – Health Administration Team, Bajaj Allianz General Insurance

As we age our healthcare needs alter and increase, and a single medical emergency can quickly use up major portion of our retirement savings. The uncertainty of unexpected health issues can be especially tough in our later years when our bodies and minds need extra care. This is where health insurance becomes really important. One of the biggest advantages of having health insurance is the peace of mind it brings. Knowing that our medical expenses are covered lets us focus on what truly matters: health and well-being without the constant worry of money. It gives us the security to get quality healthcare when we need it most, ensuring we receive the right treatment and care without hesitation. This peace of mind is invaluable, especially in the later years of life.

There are many reasons why having a health plan for senior citizens is so important:

1. Rising Healthcare Costs: Healthcare expenses have been going up over time, and this can be especially tough for senior citizens. As we age, the chances of getting lifestyle related long-term health issues like diabetes, high blood pressure, heart problems, and arthritis increase. Treating these conditions often means regular doctor visits, ongoing medication, and treatments, which can be costly. For example, an older person with diabetes might need to buy expensive medicines every month and visit the doctor often to manage their condition. Research suggests that a person detected with Type II diabetes between 45-50 may need to spend INR 20 Lakhs over lifetime on medications to maintain healthy life. Many seniors live on a fixed income, like a pension or retirement savings. Unexpected medical costs can quickly drain their savings, putting them in financial trouble. Without health insurance, they would have to pay for all of this out of their own pocket. With health insurance it can easily cover these costs, making sure that seniors don't have to spend their savings or rely on their family for medical expenses.

2. Comprehensive Coverage: These comprehensive health insurance policies usually cover various expenses, including hospital stays, medical tests before a hospital visit, and follow-up visits after surgery. For example, if a senior citizen has cataract surgery, then their health insurance policy will cover the cost of surgery and pre and post medication up to certain specified time limit. Such plans also pay for ambulance fees and treatment for serious illnesses like heart attacks or cancer. Additionally, the plan covers home treatment if the person can’t go to the hospital. For instance, if a senior citizen needs ongoing treatment and can't be moved to the hospital, the policy can even cover home visits by a healthcare professional. This comprehensive coverage helps seniors manage their health without worrying about paying for their care.

3. Pre-existing Diseases: Senior citizens are more likely to experience diseases such as diabetes, high blood pressure, and arthritis, which can lead to significant medical expenses. Therefore, having health insurance for these conditions is crucial. It helps you prepare for potential health problems and alleviates worries about unexpected medical costs. However, these plans often come with a waiting period, means coverage for pre-existing conditions will only begin after a certain duration. Recently, the Insurance Regulatory and Development Authority of India (IRDAI) has improved access to health insurance by asking insurers to offer products that cater to the needs of various categories, including all age groups and all types of existing medical conditions. Additionally, the waiting period for claims has been reduced from 48 months to 36 months. This makes health insurance more accessible and beneficial for everyone, especially for senior citizens.

4. Cashless Treatment: Cashless claims provide major benefits for senior citizens by making hospital visits easier and more convenient. With cashless, seniors can get medical treatment without paying any money upfront. The insurance company directly covers the hospital bill, which simplifies the process and avoids cumbersome reimbursement claims steps. Insurers now offer cashless claims at hospitals, even those which are not in their network. This means seniors can use cashless facilities at almost all the hospitals, getting timely care without upfront costs. This service makes healthcare more accessible and convenient, reducing financial stress and ensuring quick medical help. For seniors, this means less worry about money and a better healthcare experience, allowing them to focus on their recovery.

5. Tax Benefit: Investing in a health insurance policy can be additionally helpful for senior citizens due to tax benefits. Under Section 80D of the Income Tax Act, you can reduce your taxes by getting a deduction for the health insurance premiums you pay for yourself, your spouse, children, and parents. For senior citizens, premiums might be higher because of more medical needs, but the tax deduction can help lower the cost. This means you can reduce your taxable income by the premium amount, which lowers your tax bill and gives you extra financial relief.

Having a Health Insurance Scheme for senior citizens is not just crucial, it's a financial lifeline. It offers robust financial protection, helps access good healthcare, and brings peace of mind to both the insured and their families. With rising healthcare costs and longer life expectancies, such insurance is more important than ever. Investing in Health Insurance is a smart move to ensure a healthy, stress-free, and financially secure future for senior citizens. It’s an investment that supports health, well-being, and peace of mind during retirement.