Health insurance from banks suitable for covering healthcare needs of senior citizens

Business

oi-Roshni

By Roshni Agarwal

Published: Monday, April 21, 2014, 15:46 [IST]

Banks who in tie-up with public sector insurers including New India Assurance, Unite India Insurance, National Insurance offer lost-cost medical or mediclaim policies though not preached for a number of disadvantages seems suitable for meeting the health cover needs of senior population. Know why health insurance products from banks in general should not be betted upon.

High entry age: With working similar to any other group insurance plan, such a product can be purchased for aged population who do not have any health cover as it shall be easy to secure with no requirement for medical check-ups and provision to even enroll in a policy scheme at a high age. For instance, public-sector banks including Indian Bank, Bank of Baroda and OBC all allow purchase of such an exclusive health cover until the age of 79 and 80 years.

In case of 'Baroda Health' plan of Bank of Baroda, if the person secures the product before the age of 65 years then he can continue renewing the policy until he or she wishes to or till 80 years of age so 80 years is the threshold limit for such an offering.

Medical check-up waiver or check-up required only if a person is aged above 65 years of age: The requirement of medical check-up also arises in case you are aged over 65 years. And if you take on such a product before this time, banks generally do not require you to undergo any medical check-ups.

Low cost: Another advantage that these policies comes with is of low cost. Some of the banks charge a flat rate while others charge premium amount based on the age of the prospective individual who is to be insured through the cover. Securing of such a health cover from a bank to cover the health care needs of a senior citizen is any time better owing to the very low cost.

For a sum insured value of Rs. 5 lakh, an annual premium amount of Rs. 6,500-7,000 is payable, which when secured independently from a private sector insurer or even a public sector companies may cost heftly. Not to forget, those in the higher age bracket of above 65 years will be able to secure such an offering at a higher rate of upto Rs. 11,000 on an annual basis.

Provide cover against pre-existing diseases after a waiting period of 2-3 years: In case claim against the cover are not made during the initial years then such plans also reimburse for any health care need in respect of pre-existing diseases. Cashless treatment is provided at the network hospitals of the bank. For instance: ' Baroda Health' plan of BOB offers coverage for pre-existing ailments after 3 continuous claim-free policy years.

So, the above plan can be apt for senior citizens (also in respect of the quantum of cover) who are not covered under any of the health plan

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