Retirement itself brings various uncertainties, as the person who just retires comes into a phase where he/she will advance into an older age but also sometimes will have various financial or family responsibilities to look for. Thus, in such times individuals need to avail of a Health Insurance for Retirees policy as aging will bring with itself various health complications and you wouldn’t want them to trouble you financially when you are retired.
As people become old they may develop various illnesses which can range from more chronic diseases like Arthritis, Heart Problems, or even glaucoma in various persons. These illnesses require constant medical attention and doctor visits to avoid any further health complications.
So, in these cases, Health Insurance for Retirees essentially provides security so that people would not suffer much financially. This is especially true for retirees who don’t have that much flow of money to back themselves against such complications.
Health Insurance Options for Retirees
Various plans cater to retirees in the insurance market, which depend on various factors like age, health condition of the individual, and type of employment previously involved. Some of the major plans that retirees can opt for, however, the plans range broadly in two categories i.e. Private and Government.
Government Health Insurance Plans for Retirees
There are various schemes launched by the government that specifically target individuals who were mainly employed by the government before their retirement. One of the major schemes among them is the Central Government Health Scheme (CGHS) which is a comprehensive coverage scheme offered by the government providing facilities ranging from surgeries to hospitalization to doctor visits.
This scheme is only available for Central Government Employees who were working in any Central Government agency. Employees typically get CGHS coverage in their job terms but there is a provision through which they can opt for it even after their retirement.
Other than CGHS there is a scheme known as Employee State Insurance (ESI) which is offered by the government through which any individual who works in any private or government organization can enroll in it by giving a nominal monthly fee. The benefits offered through this scheme include prescriptions, Hospital visitations, and Surgeries.
This scheme is mainly designed for working employees and also offers Health insurance for retirees under 65, however, there are provisions through which even a retiree or a former employee can enroll himself in the scheme and reap the benefits.
Private Health Insurance Schemes
Health insurance plans offered by private organizations are plenty in the insurance market, however selecting good insurance for your personal needs as in the case of retirees can be a bit tricky. Thus, individuals need to be aware of all the policies in their domain and only then make a decision.
Most of the private health insurance companies offer Mediclaim health insurance plans which are specifically designed for retirees. These policies are designed by the insurance companies to address the growing demand for health among retirees.
The coverage of these policies typically includes hospitalization coverage, ward rent allowance, nurse charges, doctor visitations, surgeries, and also post-hospitalization expenses. These policies offer such a wide range of facilities as most of the persons availing them are in their latter stages of life and thus require extensive care.
Furthermore, in terms of coverage amount policies can differ amongst themselves which can typically range from 5 Lakhs to 25 Lakhs depending on the premium amount. However, most insurance companies set their insured amount based on various factors like the age of the retiree, his medical history, and even geographical location.
Other than Medical Health Insurance policies individuals have the option to opt for Group Health Insurance for Retirees Policies or Personal Saving Insurance Policy. Where the former covers individuals part of a certain group. For instance, some individuals after retirement join various groups like Alumni Networks, Charitable Organisations, and NGOs which can offer these group insurance policies.
The latter offers health insurance coverage based on the savings accumulated throughout their employment which works by agreeing to pay a certain sum when in employment against health or life insurance offered in the days of retirement.
Benefits of Health insurance for retirees in India
Health insurance is a must-buy for all. There are many benefits of health insurance for people of all age groups. But if we specifically talk about retirees, its importance increases. Here is a list of a few benefits of health insurance for retirees in India.
To tackle the financial burden of unexpected health emergencies without any dependencies
The average annual expense of healthcare services by Indian senior citizens is more than ₹3,40,000 as per reports of 2011. The unexpected medical expense could be a lot of lot on your pocket. So, firstly it is important to introduce yourself to the Health Insurance for Retirees policies. By understanding what are the benefits you get from the policies and the things that are covered in the policy you can make an informed decision.
Once the process of medication is started the hospital will send the bill for your medical expenses to your health insurance provider and then they will approve a certain portion of the bill that would be paid by the insurance provider.
Depending on the policy you will have to pay a certain amount of the total bill but the health insurance policy would cover the major portion of the bill. The time the approval will differ from one health insurance provider to another.
To cope with the rising cost of medical expenses in India
As per reports, the inflation rate in 2021 in the medical sector was 14%. With the increasing prices of medical services, it becomes difficult for the common people to cope with the prices. Having health insurance helps retirees by giving them coverage for their medical expenses.
Health insurance reduces the amount that you have to give from your pocket. This can be very beneficial for people having chronic medical conditions as they require regular medications. Health insurance also provides some preventive care facilities that could help detect health issues in the early stages.
Freedom in Living
Knowing that your all medical expenses could be covered easily in case of any medical emergencies provides policyholders peace of mind. This also gives the policyholder the psychological benefits that now they can focus only on their health rather than worrying about the finances regarding health issues.
Health insurance provides you with a huge network of hospitals, doctors, and other medical facilities. The search for top medical services becomes easier for the policyholder by assuring him the top medical treatment.
Essential Tips for Choosing Retiree Health Insurance
- Cashless Facility
When looking to buy a health insurance policy always ensure that the plan you are going to buy offers cashless facilities and offers cashless claims within hospitals. This is essential to look for as you will not have to always draw the money from your hard-earned savings which will save you financially and mentally too.
Also, do not forget to ensure that the policy you are buying has cashless hospital coverage in your geographical area or not. This will ensure that you save money on travel costs and any medical emergency will be addressed promptly.
- Claim Procedure
Apart from ensuring that your insurance plan has a cashless facility, it is also very essential to ensure that the claim procedure is streamlined and not too document-intensive. Ideally, look for plans where you can file a claim through the agency’s website or app.
Furthermore, many insurance plans also provide tracking of your insurance claim which keeps you up-to-date with developments in your claim, thus you can also look for this feature when buying your policy.
- Bonus and Deductibles
Bonuses and Deductibles are essentially very important parts of a policy as they ensure that your policy has the lowest average cost of Health insurance for retirees or is cost-efficient. Various policies in the market offer claims such as no-claim bonuses and premium bonuses through which individuals can get concessions on their premiums or an increase in their coverage for no claims within 1-2 years.
It is essential also to ensure that the deductibles present in your policy should not make your policy too expensive and should be in such a way that it doesn’t affect you much financially.
Conclusion
Planning for retirement should be started as early as possible. Health insurance must be included in the plans of retirement. As there are a lot of insurance providers in the market here are some best Health insurance for retirees under 65, HDFC ERGO, Tata Aiag, Bajaj Allianz, etc.
