Health Insurance 287 views June 15, 2021

Regular vs Senior Citizen Health Insurance – Which Should People Aged Above 60 Choose?

The importance of health insurance cannot be undermined at any stage of life; be it when you are young or are living your golden period i.e. retirement days. The surging medical expenses can consume your savings drastically when faced with a health emergency. As health concerns mostly mount when you are above 60, relying solely on the retirement corpus for the same is not advisable. Instead, go for a health insurance plan that covers such expenses and keeps your financial harmony intact.

While health insurance is important to have at such times, it’s also vital to choose the right one to have the desired comfort. Yes, you need to choose from regular vs senior citizen health insurance. Choosing between the two will require understanding the basics of these plans and the edge one has over the other. We will help you know the same through this post. So, keep reading and make the right choice!

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Basics of Regular vs Senior Citizen Health Insurance Plans

A regular health insurance plan is available on both an individual and family floater basis. While an individual plan will cover an individual, a family floater plan will cover an individual along with his/her family under the same policy. Whereas a senior citizen health insurance plan is solely for people aged above 60 years.

Let’s Compare Regular vs Senior Citizen Health Insurance Plans Based on Different Aspects

The comparison between regular and senior citizen health insurance plans on different aspects will give a fair idea of the better alternative. Let’s compare these two on the sum insured, premium, flexibility and other factors and see which scores the maximum on these.

Which Comes with the Maximum Sum Insured to Cover Your Healthcare Expenses?

When choosing a health insurance plan, the focus should also be on the growing inflation that decreases the value of money sharply over time. For instance, if an operation today costs INR 1 lakh, you will need to pay 4 lakh for the same a few years later, thanks to inflation. So to counter inflation better, the sum insured i.e. the coverage amount should be adequate. While regular health insurance plans come with a sum insured of INR 5 lakh-1 Crore, senior citizen dedicated plans have around INR 5-20 lakh. So, a regular plan is an outright winner on this count.

Which of the Two Has a Lower Premium Amount?

In exchange for the health insurance cover, insurers charge a premium from you annually. The premium amount depends on the sum insured, age and gender of the policyholder, existing health conditions, etc. A regular health insurance plan will have a greater premium compared to a senior citizen plan for obvious reasons. Firstly, regular plans have a greater cover amount. So, the extra premium chargeable towards the same only serves you better when requiring a costly medical treatment later.

The second reason for a lower premium in the case of a senior citizen health insurance plan is the mandatory co-payment clause it comes with. The clause will lead to a shared claim burden on both the insurer and the insured.

In case the plan comes with a 10% co-payment clause and the sum insured is INR 6 lakh, you will first need to pay INR 60,000 (6,00,000 x 10%) if a health emergency occurs. Thereafter, the insurer will pay the remaining amount up to the sum insured. So, if the total treatment cost is INR 2 lakh, the insurer is liable to pay INR 1,40,000 after you make a payment of INR 60,000. No such clause exists in a regular health insurance plan. But if you want, you can get that added to your regular plan.

Which is the Right Plan for Senior Citizens Having Pre-existing Illnesses?

Senior citizens when plagued with pre-existing illnesses will most likely get a dedicated plan for people of their ages only. Illnesses at such times can lead to the cancellation of a regular plan more often than not. Or if gets approved, the premium may be too high.

Regular vs Senior Citizen Health Plans – Which Come with Lower Sub-limits?

Sub-limits, which are common with health insurance plans, mean a restriction of coverage for illnesses or diseases. These limits also apply to the rent of the room where your treatment will take place. While some regular plans have no such limits on room rent, some of them will have. Whereas senior citizen plans will most likely come with limits on room rent plus illnesses. When carrying a limit, the coverage will be provided to the said extent only. In case the actual cost exceeds the limit, you will need to bear the extra amount.

Conclusion

On most counts, regular plans have won over senior citizen plans. But being a senior citizen, It depends totally on you to choose the right plan for yourself. As retirement corpus and the overall financial responsibilities can differ from one individual to another, it is advised to select the plan accordingly. The bottom line is – Get insured adequately without having to pay too much through the premium.

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