Senior Citizens Hit by High Premiums: 5 Ways to Ease Health Insurance Burden

You can consider employing the following strategies to save on your senior citizen health insurance policy premium.

As you enter your golden years post-60, health insurance becomes important to safeguard your savings from unexpected medical expenses. This article outlines practical tips to make health coverage more affordable for seniors. It suggests options such as opting for a floater plan to cover multiple family members under one policy, claiming tax benefits under Section 80D, considering super top-up plans for additional coverage, purchasing insurance early to secure lower premiums, and choosing policies with lifetime renewability for continuous protection.

After 60, often referred to as the golden years, you retire, have decent savings, and are free from many responsibilities. But have you ever considered what would happen if you fell ill and needed hospitalisation? A major portion of your savings could go in vain. This is where having health insurance provides peace of mind. However, obtaining medical coverage at an older age can be costly. With a few tips, though, you can make it more affordable.

Tips to Ease Health Insurance Premium Burden

You can consider employing the following strategies to save on your senior citizen health insurance policy premium.

• Invest in Floater Plan

A floater plan is a single policy that includes multiple family members under one sum insured. Instead of buying separate policies, you pay a single premium for the whole family.

Now, suppose you and your spouse are in your late 60s and want health insurance. If both of you take individual senior citizen plans, the premiums will cost you, say, around ₹30,000 each per year. But your son, who’s in his 30s and already has a floater plan covering himself, his wife, and his child, can choose to include you and your spouse in the same policy.

Now, instead of paying two separate high-premium senior plans, the entire family shares one sum insured of ₹10–15 lakhs. The insurer computes the premium based on the age of the eldest member, which may still be higher due to senior citizens but is often cheaper than two separate policies.

• Claim Section 80D Tax

The Income Tax Act of 1961 offers tax deductions on health insurance premiums under section 80D. As per current rules, individuals aged 60 and above can claim a tax benefit of up to ₹50,000 on premiums paid for their health insurance. If their children or family members are paying for their policy, they too can claim this benefit. Couples can even split policies to claim two deductions, totalling up to ₹1 lakh.

If you incur expenses on preventive health checkups, a deduction of ₹5,000 is available, which can be claimed within the threshold limit. It is important to mention that this tax benefit is available if you file returns under the old regime.

• Super Top-Up Health Plans

You may consider opting for a super top-up plan. The coverage of this plan kicks start only after a specific deductible is exhausted.

For example, if you buy a health insurance super top-up plan with a ₹3 lakh deductible and ₹10 lakh coverage, the insurer covers expenses only after the hospital bills exceed ₹3 lakh in a year. Such plans are beneficial for senior citizens who already have basic insurance coverage, as the super top-up adds a financial cushion at a fraction of the cost.

• Purchase Insurance Early

The earlier you purchase health coverage, the lower your policy premium will be. This is because once you reach the age of 60, your body becomes more susceptible to various ailments. However, during your working years, especially if you maintain an active lifestyle, the risk is relatively lower.

Most insurers increase premiums every five years by 10–20% based on age bands, such as 61–65, 66–70, and so on. Starting early places you in a lower age band, ensuring more affordable renewals. Additionally, buying a policy early helps you complete the waiting period for pre-existing conditions.

• Plans with Lifetime Renewability

Always select a health insurance policy that comes with lifetime renewability. Many older plans stop renewals after 70 or 75 years, forcing you to buy a fresh policy at an older age when premiums are highest, and many conditions are excluded. Lifetime renewable plans ensure that even after 80 or 90, you won’t be left uninsured. These plans continue despite age or health deterioration, and once you are in, insurers cannot deny renewal unless there is fraud.

Conclusion

Buying health insurance in your 70s can be challenging. However, from opting for a floater plan and claiming tax benefits to considering super top-up plans and purchasing insurance early, proactive steps can make coverage more affordable. You can also consider choosing policies with lifetime renewability for continued protection without age-related exclusions.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.