8 Smart Ways for Senior Citizens in India to Reduce Health Insurance Premiums
As healthcare expenses continue to rise in India, senior citizens often find it challenging to manage medical bills, especially with the growing incidence of age-related health issues. Having a Mediclaim policy or senior citizen health insurance plan has become a necessity, but for many, the premiums can be burdensome. Thankfully, there are several strategies that senior citizens can adopt to reduce their health insurance costs without compromising on the quality of care.
8 Ways to Lower Healthcare Policy Premiums for Senior Citizens
The following are tips to reduce healthcare policy premiums for those aged over 60 —
- Opt for a Senior Citizen Health Insurance Policy
Many insurance companies in India offer senior citizen health insurance policies specifically designed for people over 60. These policies generally provide comprehensive coverage but can come at a higher premium due to age and pre-existing conditions. However, these specialised policies often come with added benefits like preventive health check-ups, cashless hospitalisations, and specialised care for common age-related ailments.
By choosing a policy tailored to the specific needs of senior citizens, you can often find better value compared to regular health plans. Compare various policies to find one that provides maximum coverage at an affordable premium.
- Higher Deductibles for Lower Premiums
One effective way to reduce the cost of a Mediclaim policy is to opt for a higher deductible. A deductible is the amount you are required to pay out of pocket before the insurance company begins to cover your medical expenses. While a higher deductible means you will have to bear a larger portion of the initial costs, it also results in lower premium payments.
For senior citizens in relatively good health or those with adequate savings for minor treatments, opting for a higher deductible could be a practical way to cut premium costs without sacrificing significant coverage.
- Consider Family Floater Policies
If you live with your family, a family floater policy could be a cost-effective solution. These policies cover the entire family, including senior citizens, under a single sum insured. Although family floater policies may charge higher premiums when senior citizens are included, they can still work out to be more affordable than individual health insurance policies for each family member.
However, it’s crucial to ensure that the sum insured is high enough to cover the medical expenses of all family members, especially when a senior citizen is included in the policy.
- Porting to a More Affordable Policy
If you are already enrolled in a health insurance plan but find that the premiums have become too high, you can consider porting your policy. The Insurance Regulatory and Development Authority of India (IRDAI) allows policyholders to switch from one insurer to another without losing benefits like waiting periods for pre-existing conditions.
Porting to a different insurer can give you the chance to find a policy with lower premiums or better features. Make sure to compare policies thoroughly before making the switch, keeping in mind that some insurers offer specific plans tailored for senior citizens.
- Tax Benefits
One of the hidden ways to save on health insurance costs is by taking advantage of tax benefits. Under Section 80D of the Income Tax Act, senior citizens can claim a deduction of up to INR 50,000 on premiums paid for a Mediclaim policy or health insurance. If the taxpayer is also paying for the health insurance of their senior citizen parents, an additional deduction of INR 50,000 is allowed.
These tax benefits help in reducing the overall cost of health insurance, providing financial relief.
- Look for Policies with Preventive Health Check-ups
Many insurers offer health policies that include free or discounted preventive health check-ups for senior citizens. Regular check-ups can help detect potential health issues early, reducing the need for future expensive treatments. It also allows you to keep track of your health and avoid making claims for minor ailments, which, in turn, helps you maintain your No-Claim Bonus.
Choosing a policy that includes preventive health services is not only a better way to manage health risks but also helps you save on long-term medical expenses.
- Choose Co-Payment Options
Many insurance providers offer policies with a co-payment clause where you agree to pay a portion of the medical bills. Co-payment options usually result in lower premiums. For instance, a co-payment agreement may require you to pay 10-20% of the medical expenses, with the insurer covering the rest. This option works well for senior citizens who can afford minor out-of-pocket expenses but want to secure coverage for major hospitalisations.
However, it’s essential to understand the co-payment terms before choosing this option. A higher co-payment can significantly reduce premiums but could also result in higher out-of-pocket expenses during treatment.
- Leverage No-Claim Bonus (NCB)
One of the most significant advantages of maintaining a Mediclaim policy is the No-Claim Bonus. If you do not make any claims during the policy period, the insurer typically offers a discount on the premium for the next year. For senior citizens who maintain good health and make minimal claims, the NCB can help reduce insurance costs substantially over time.
Additionally, many insurers offer the option of increasing the sum insured for every claim-free policy year, providing enhanced coverage at no additional cost.
Conclusion
With careful planning and informed decisions, senior citizens can enjoy affordable health coverage without compromising on essential healthcare benefits. Senior citizens can significantly reduce their health insurance costs by selecting the right Mediclaim policy, opting for higher deductibles, and leveraging tools like the No-Claim Bonus. Furthermore, tax benefits and regular policy comparisons can go a long way in ensuring affordable healthcare during one’s golden years.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.
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