Three Options for Retirees to Remain Covered

Spiralling costs of healthcare has been a major concern mainly for senior citizens.  Growing rate of medical inflation is making senior citizens worry about their financial security. There must be a proper financial planning which helps to achieve various small or big goals of life. A right mix of investment and returns can create a perfect security cover. Pre-thinking about any financial situation and pre-preparing for it can take you away from many financial hassles.

Read More

Policybazaar exclusive benefits
  • 30 minutes claim support*
  • 50,000 claims approved in last 15 months*
  • Schedule home visit with our advisors
  • Get a plan based on your medical needs

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

*Tax benefit is subject to changes in tax laws. Standard T&C Apply

Tax benefits up to ₹75,000* under 80D
Back
Find top plans with up to 25% discount
  • 1
  • 2
  • 3
  • 4

Who would you like to insure?

  • Previous step
    Continue
    By clicking on “Continue”, you agree to our Privacy Policy and Terms of use
    Previous step
    Continue

      Popular Cities

      Previous step
      Continue
      Previous step
      Continue

      Do you have an existing illness or medical history?

      This helps us find plans that cover your condition and avoid claim rejection

      Get updates on WhatsApp

      What is your existing illness?

      Select all that apply

      Previous step

      When did you recover from Covid-19?

      Some plans are available only after a certain time

      Previous step
      Advantages of
      entering a valid number
      You save time, money and effort,
      Our experts will help you choose the right plan in less than 20 minutes & save you upto 80% on your premium
       

      According to a latest report released by KPMG and Assocham, the cost of treatments like angiography and gall bladder removal has shot up by 50-60% between 2007 and 2012 with the medical inflation growing at 15% per annum. Indeed, 86% out-of-pocket healthcare expenditure in 2011 has dominated their expenditure. Health and financial insecurity are ranked among the key fears according to the survey in India in which 38% of elder respondents favoured the same. Numerous senior citizens in India lack the resources to finance treatment which is called as Low Insurance Penetration.

      What is actually the main trigger for the insecurity? According to financial experts, the nonexistence of ample health insurance is the main trigger especially for those individuals who are banking on their employers’ group health insurance scheme. The head of general insurance and principal officer of Emkay Insurance Brokers, Divya Gandhi said that senior citizens suddenly find themselves without a security cover on retirement. The reason behind this is that at the time of retirement, it is difficult to have a new cover due to firm medical tests and elevated premiums. The retirees thus are left with three options to make themselves secure from this situation:

      • First option if permitted is to continue with the employer’s group cover by paying off the complete premium.
      • Second is to take an individual cover with the same insurer who is giving the group cover.
      • The third option is to take an individual cover from any insurer.

      The best option among all is the first one as it will not let the benefits of the existing policy go waste. There will be no waiting period of three or four years for pre-existing diseases in this scenario. Gandhi said that if company permits then one must go for this option but you should go through the terms and conditions to know whether all the continuity benefits will accumulate to you or not. In addition, it will help the insured to save money and also claim settlement becomes smoother. But only few organizations allow this option.

      In the second option according to IRDA portability guidelines, the insured can shift from group insurance to individual cover of the same insurer. Initially, the insured needs to take the cover from the same insurer but later on he can switch to any other insurer. The general manager of New India Assurance, Segar Sampath kumar said that the terms and conditions of an individual policy could be different from those of the group insurance. This option also saves the benefit of pre-existing diseases cover if the coverage period under group policy surpasses waiting period stipulated in the retail product. Though, the premiums will be a bit higher than the group insurance policy. According to the CEO of Vantage Insurance Brokers, Arvind Laddha, the premiums in first option could be unstable as they will be determined the experience of claims of the complete group. But premiums will be more stable if the insured switches to individual cover.

      If the insured chooses the third option then he must be prepared for the medical check-ups, sub-limits and co-payments. In this option, you will have to carry the burden of loading as well as higher premiums. Apart from all this, there is a possibility to get a denial of getting coverage. Laddha pointed out that going through the complete policy wordings is must as the insurers keep on introducing minor changes in terms of restrictions & benefits both to make their plans different from others. If a plan demands less premium then there must be some limitations like room rent limits, cap on surgeon charges, sub-limits on ailments and many others. The plan even with low premiums could prove expensive in case of a claim. So, be secured even after retirement by taking wise decisions. 

      Search
      Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.

      Health insurance articles

      Recent Articles
      Popular Articles
      Should You Buy a Super Top-up Health Insurance Policy?

      18 Jan 2023

      India is abuzz with a variety of health insurance plans to cater
      Read more
      6 Reasons Why Your Cashless Health Claims Can Get Denied

      18 Jan 2023

      Cashless claims are one of the most lucrative benefits of buying a
      Read more
      Check Out the Mandatory KYC Documents for Health Insurance

      30 Dec 2022

      The Insurance Regulatory & Development Authority of India
      Read more
      What to Look for in a Health Insurance for Cancer Plan?

      20 Dec 2022

      Cancer is one of the biggest demons that the world faces today
      Read more
      What are the Factors Affecting Health Insurance Premium?

      20 Dec 2022

      Demand for insurance products in India, especially health
      Read more
      What are the Normal Thyroid Stimulating Hormone (TSH) Levels as Per Age?
      The thyroid gland is an important gland responsible to produce the right amount of hormones for normal body
      Read more
      How to Apply for Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (PM-JAY)?
      Ayushman Bharat Yojana is a flagship health insurance scheme launched by the Government of India to offer universal
      Read more
      Income Tax Slab for Women: Guide to Exemptions and Rebates
      In India, every person who earns beyond a certain limit is liable to pay income tax to the government. The tax
      Read more
      Best Health Insurance Plans for Senior Citizens in 2023
      Senior citizens are the most prone to diseases. Considering the medical inflation in India, buying health insurance
      Read more
      10 Major Benefits of Ayushman Bharat Yojana
      Pradhan Mantri Jan Arogya Yojana (PM-JAY) is the second component under Ayushman Bharat Scheme. PM Narendra Modi
      Read more

      top
      Close
      Download the Policybazaar app
      to manage all your insurance needs.
      INSTALL