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Health insurance for Senior Citizen

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If you are wanting to buy a life insurance for senior citizen then give it a second thought whether really they need it or not if they are 60 years of age or above then they do need an insurance but not life insurance instead they need cover for their health and assets.

You can easily compare all the available policies in market from all top insurance companies in few seconds to choose the best policy as per your needs from here- Senior Citizen Plan

Basically, there are three objectives behind buying a life insurance they are:

  • tax saving
  • living legacy for the heirs
  • ensuring financial security for the dependents.

If your objective of taking life cover is that you want to give financial protection to your dependents in the case of something happened to you in other words basically insurance is needed when you have dependents and responsibilities at different stages of life such as marriage, home loan etc, but till you come to the age of retirement then you have fulfilled your financial responsibilities such as your home loan is paid off and your children are settled, it is in rare cases that your liabilities remains even after your retirement.

Another point is that if you want to buy term insurance at the age of 60 then there is a limited period for which you are covered as most of the companies provide term plans up to the age of 65-70 years, there are few companies that offer insurance at this age. There are only three companies that offer term insurance at the age of 60 for 15 years and even if you get insurance then for it, you have to go through rigorous medical tests.

And if your objective is that you want to leave a legacy behind for your heirs then you might think to buy a whole life plan where you pay premiums for whole life and your nominee gets the sum assured and any additional bonus after your death and there are also some plans which have limited premium paying term.

But if you look it in the real sense that does whole life plans are the best way to leave a legacy behind, then it is not, as it does not provide enough return as they are usually traditional product hence it invests most of its fund in debt products and costs are also not mentioned explicitly.

If your objective is tax saving then you can look at other investment option which will also give you assured return take for instance you can invest in Public Provident Fund (PPF) which will not only give you assured return of 8% annually and it is tax free and you can even get deduction on its contribution under section 80C of income tax Act, another option for you is that you can invest in 80C fix deposits for assured return if you are conservative investor and if you are ready to take risk than you can invest in diversified equity-linked saving schemes which will not only help you in wealth creation but it will also save tax.

Hence, not everyone needs life insurance especially senior citizens but everyone needs Health insurance particularly for senior citizens. According to regulations, insurers can’t refuse you for health insurance till the age of 65 but it is difficult to get health cover after 65 years of age as very few insurers provide health cover after 65 and those who offer they limit sum assured to 3-4 lakhs.

If you willing to buy health cover then take in considerations some points before buying it such as go for the cover which allows life long renewal especially stand-alone companies provide life long renewal and another point is that most of the policies have co-pay clause according to which an insured have to share part of claim with the insurer at prescribed rate hence go for the cover which has less percentage of co-pay.

You can also opt for critical illness cover to bump up your cover critical illness policies are different from basic health insurance policies as they cover only specific diseases and they are even cheaper than basic health policy as senior citizens get less sum assured under basic health insurance cover hence critical illness cover can help to increase your health cover.

You also need cover for your assets such as if you have a house then you must have house holder’s policy which is basically a fire policy that covers house and its contents in the case of fire, earthquake, lightning, flood storm you can also have terrorism cover for your house as add-on cover for which you need to pay 10 paise for sum assured of Rs 10,000.

Third party motor cover is mandatory and it is also necessary for you to take it for your car as it not only covers your liabilities towards the third party but it also pays for damages to your car and passengers in case of death.

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