Factors to Consider in Choosing Senior Citizen Health Insurance Plan
In the recent scenario, medical advancements and high potency drugs have made drastic enhancements in life expectancy. The effect of which has brought an increase in the expenses for medical treatment and considerably more so with growing age, making medical coverage for senior people a necessity. Frequent illness and costly medications are the troubles that can lead to deteriorating your parents’ old age period to the core.
While you may possess a health insurance plan, but what about your parents? Isn’t their health care your responsibility? You need to understand that it will become more and more difficult for your parents to get a health insurance cover, therefore, you should act to make them get a senior citizen health insurance policy. Here are some significant factors you need to remember while going to have an insurance scheme for your parents:
1. The age factor
The greatest distinction (and obstruction related to the section between a medical coverage plan for senior residents and health insurance for youthful individuals is the age of the insured. Numerous insurance agencies don’t allow to insure old age residents after crossing a particular age, which varies somewhere in the range of 70 and 80 years. A few organizations may permit them at that age, but they may not permit their renewal after the age of 85-90 years.
2. Pre-existing illness and medical treatment
While most senior citizen health insurance providing companies hold a waiting time of around 2 to 4 years before covering already existing illness, there are few that offer a reduced waiting term for almost a year to zero days. Numerous insurers additionally expect and required a comprehensive health check-up before affirming the plan, while few of them have the policy to waive this prerequisite. This can affect the policy in two ways where either the premium is probably going to be higher or the protection cover could go lower.
3. Prohibitions and co-payment conditions
When it comes to normal medical coverage, different treatment and medications can have a prohibition, that is not secured by the plan, and additionally co-payment provision, where costs are mostly borne by the insured individual, connected to it. From the room for hospitalization to the consultation fee of a specialist or any special treatment required, each item mentioned in the medical bill is probably going to be covered under either of two provisions appended to it. Co-payment is generally obligatory for senior citizen medical coverage, however, the rate can differ between 20-40% of the bill.
4. Group insurance from the company
It is a smart thought to check the inclusion offered by your employer. Though generally, it includes life partner and kids, but some permit inclusion of parents as well. It can prove to be a highly beneficial point for you due to some factors such as it requires no extra installment of a premium, and a few prior ailments would be covered under the plan from the very first day. However, it is highly recommended to have individual health coverage to avoid any sort of issues at the time of leaving the job.
5. Tax reduction
Premium paid in relation to health insurance coverage for self or parents is qualified for exemption under Section 80D. If the payment is made by your parents, they can claim for a deduction as per their age as the relaxation in tax is higher for Senior Citizens. In another case, if you are paying the premium amount on their behalf, then you qualify for a tax deduction in addition to the premium paid for your own health insurance plan.
When it comes to getting a health insurance policy for your parents, it is always preferred to have it as soon as possible. The more time you take to opt for a plan, higher will be the chances of not able to get it due to age limitation or you will have to pay a high premium for it. Having analyzed all the factors, it can be concluded that a little more cost of a premium for your parents is worth huge financial assistance you get at the time of a medical crisis.