Growing healthcare expenditures have been a serious concern, particularly for senior citizens. Seniors are becoming more concerned about their financial stability due to the rising cost of medical care. A good financial plan is essential for achieving a variety of life’s objectives.  A flawless security cover can be made with the proper combination of investments and profits. You can save a lot of financial headaches by anticipating any financial circumstance and making the necessary preparations, such as keeping medical insurance ready.

Did you know? About 30% of the 138 billion people in the world do not have any form of medical insurance, including Indians^[1]. So, what is health insurance, and why do you need it? It is an insurance that pays for medical costs incurred. These costs might be connected to hospitalisation charges, medication, or professional fees.*

According to a new analysis, the cost of procedures like angiography and gallbladder removal increased dramatically between 2007 and 2012, with medical inflation rising at a rate of 15% annually. Their out-of-pocket healthcare expenses in 2011 accounted for 86% of their total spending. According to a survey in India, 38% of older respondents feared their health and financial security the most. Hence, It is essential to plan health insurance for senior citizens. ‘Low Insurance Penetration’ is the term used to describe the fact that many senior individuals in India lack the financial means to pay for medical care.

What is the primary cause of the insecurity in reality? Financial analysts claim that the leading cause is a lack of adequate health insurance, particularly for those who rely on their employer’s group health care plan.

• The first choice, if allowed, is to keep the employer’s group coverage by paying the entire price. 

• The second is to get an individual policy from the same insurer that provides group coverage. 

• Getting a separate policy from any insurer is the third option.

The first alternative is the best one since it will prevent the benefit of the current policy from being wasted. In this case, there won’t be a three- or four-year waiting period for existing disorders.

The second option allows the insured to switch from group insurance to individual coverage with the same insurer under the Insurance Regulatory and Development Authority of India’s (IRDAI) portability standards. The insured must first get coverage from the same insurer, but they can transfer to any other insurer at a later date. If the coverage period under the group policy exceeds the waiting period outlined in the retail product, this choice also saves the advantage of pre-existing conditions coverage.* However, the premiums will be slightly higher than the group insurance plan. The premiums in the first choice may fluctuate because they will be based on the group’s overall history with claims. However, if the insured moves to private coverage, premiums will be more steady.

The insured must be ready for medical checkups, sub-limits, and co-payments if he chooses the third choice. As the insured, you will be responsible for paying more significant premiums and the burden of loading in this choice. In addition to all of this, the application for coverage could be rejected. If a plan asks for a lower premium, there must be restrictions, such as room rent caps, surgeon fee caps, sub-limits on illnesses, and many more. Even with low premiums, the plan can be pricey in case of a claim.

Make prudent decisions to ensure your financial security even after retirement.

* Standard T&C Apply

‘Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.‘