With rising healthcare costs health insurance is a must for everyone. However, it is even more crucial for senior citizens, who are more likely to have health issues. In a recent ruling, the Insurance Regulatory and Development Authority of India (Irdai) ruled that health insurance premiums for senior citizens cannot be increased by more than 10 per cent per year.
Even then, premiums for senior citizens can be quite high, especially if they already have pre-existing diseases. However, there are certain ways for seniors to reduce their health insurance premiums.
Start Early: When one starts early, the premiums will be low. Taking a health insurance policy at 30 will be significantly cheaper than taking one at 60. Policies also offer a no-claim bonus which could be five to 10 per cent every year of no claims. You can also save on premiums with a multi-year policy with a discount of up to 15 per cent on three-year premiums.
Opt For Deductible And Co-Pay: Another way to keep premiums in check is to opt for deductibles and co-pay. Deductible means that the insurer will pay your claim after you pay a certain amount from your own pocket. Deductible means that the insurer will pay your claim after you pay a certain amount from your own pocket. So, if there is a deductible of Rs 5 lakh, and your claim is Rs 3 lakh, you have to pay it on your own. However, for a claim of Rs 8 lakh, you will pay Rs 5 lakh and the insurer will pay Rs 3 lakh.
Co-pay works in a similar way but on a percentage basis. For example, with a co-pay of 20 per cent, if the bill is Rs 2 lakh, you pay Rs 40,000 and the rest is paid by the insurer.
Since both these options reduce the liability of the insurer, this can substantially reduce premiums for senior citizens.
“To suit the budget and requirements of the policyholders can now reduce or increase their limit of co-payment or voluntary deductions,” says Siddharth Singhal, business head, health insurance, Policybazaar.com.
Get a Base Plan With A Super Top-Up: A similar way to reduce premiums is to get a super top-up plan. Super top-up insurance is a type of health insurance policy that provides additional coverage beyond the threshold limit of an existing base health insurance plan.
