There are various plans offered by insurance companies specially designed for a senior citizen who are above the age of 60-65 years. Health insurance is a must for a senior citizen as ailments increases with age and it is best if financial things are taken care.

With high medical cost, one should be extra careful when buying a cover for elderly parents. If the policy is bought without serving the main purpose, it has to be paid from the pocket.

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Here are 5 important things to consider:

1. Insurance policy varies with age. Many insurance companies offer insurance up to a certain age. Check with your policy provider and compare the same.
2. Check for the option for pre-existing diseases. Usually, insurance companies will cover for pre-existing disease after 1-2 years of buying the policy. Some companies do not cover pre-existing disease at all. Or check for coverage of specific diseases.
3. If insurance is not claimed in two consecutive years, the policy will be eligible for no claim bonus.
4. Premium of senior citizen policy will be high depending on the age and pre-existing diseases.
5. Some insurance companies ask for co-payment which means one has to pay from the pocket at the time of hospitalization. The percentage of co-payment differs with each insurance companies.

Here are some of the common features of senior citizen plans:

• Most of the policy includes hospitalization including medical bills and room charges.
• One can opt for cashless hospitalization depending on the insurance policy.
• Day Care expenses will be covered.
• Ambulance charges will be taken care.
• Pre and post hospitalization charges are covered up to 30 days.

Tax Benefits

Investment in an insurance policy is eligible for tax benefits. A senior citizen can avail of higher deduction of Rs 30,000 u/s section 80D from A.Y. 2016-17.

In case of expense on medical treatment of specified ailments if the patient is a senior citizen, then deduction of Rs 60,000 is allowable under section 80DDB.

Any payment made on account of medical expenditure in respect of a very senior citizen can be claimed as a tax deduction.

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