Senior Citizen Insurance

The next type of health insurance plan targeted towards old-age people is the 'Senior Citizen Health Insurance Plan.' 

Insurance is bought to secure against the risk of death, disability and disease. While old age is synonymous with memories and life long experiences, increasing vulnerability to diseases cannot be ruled out. This explains the need for having a senior citizen health insurance policy that ensures financial security to all those aged 60 years and above. 

Following are the names of the senior citizen health insurance plans corresponding to the insurance companies that sell them. 

Some may argue about how ensuring enough savings can defer the need for buying a Senior Citizen Health Insurance Plan. However, the essential features and benefits of these plans help to understand why buying them can be beneficial in the long run. Some of them include:

• The benefit of a greater amount of sum insured
• Premiums paid towards these plans are eligible for tax deduction under Section 80D of the Income Tax Act 1961
• Daycare costs on the use of special equipment during treatment of critical illnesses like kidney disorders or cancer are covered
• Expenses on yearly health check ups covered
• Cashless treatment facility in hospital network
• Policy renewability option available
• Ambulance expenses to carry the insured also covered under the policy
• Treatment of pre-existing disorders subject to the terms and conditions of the policy are also covered
• Claim settlement is quick and seamless, unlike most other plans

Senior Citizen Health Insurance Policy Exclusions

• Policyholders cannot seek a claim for diseases diagnosed within a month of buying the policy
• Any kind of treatment that is non-allopathic in nature
• Injuries sustained during a suicidal attempt
• Pre-existing disorders before buying the policy. However, these exclusions are subject to the terms and conditions of the policy bought
• Claims on the treatment of addiction problems
• Treatment of sexually transmitted diseases
• Treatment of old-age problems like joint replacement can be availed after two years of buying the policy
• Amount spent on dental treatment
• Cosmetic surgery procedures
• Treatment of injuries sustained during war or terrorist attacks

Since these plans are best suited for retired individuals or aged customers, they can be bought by either the senior citizens themselves or young people for their aged parents. 

Note that lifestyle habits are major determinants of premium rates, which means that policyholders who do not smoke cigarettes or drink alcohol would be charged lower than those who drink or smoke. Later in this module, we will discuss the major factors that determine the premium rates. Also, there are many important aspects that a health insurance policy may include or exclude from the cover, which we will discuss next.