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.
Here are 5 important things to consider:
- Insurance policy varies with age. Many insurance companies offer insurance up to a certain age. Check with your policy provider and compare the same.
- 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.
- If insurance is not claimed in two consecutive years, the policy will be eligible for no claim bonus.
- Premium of senior citizen policy will be high depending on the age and pre-existing diseases.
- 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.
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.