As senior citizen health insurance premiums continue to rise, opting for a co-pay option can be a practical way to manage costs. Co-payment significantly lowers the insurance premium, making it more affordable for those who may have limited income post-retirement.
The insured agrees to pay a part of the medical expenses, while the insurer covers the rest. For instance, if an insured opts for 20% co-payment and the total hospital expense is Rs 1 lakh, he will have to pay Rs 20,000 and the insurer will pay the rest. This percentage is decided at the time of purchase of the policy.
Choosing a co-pay option can also offer flexibility, allowing seniors to tailor their policy according to their health needs and financial capacity. Sharad Bajaj, chief operating officer, InsuranceDekho, says with reduced premium costs, they can maintain access to essential health coverage without straining their savings. “This option is particularly beneficial for those who do not frequently require hospitalisation or expensive treatments, helping them save money while staying insured against major health risks.”
Rakesh Goyal, director, Probus, an insurance broking company, says opting for a co-pay can reduce the premium for senior citizens’ health insurance policies. “They should check if their preferred hospitals are included in the insurer’s network, as receiving care outside the network could result in higher expenses.”
