Growing older comes with many life changes, and one of the biggest is retirement. While it can be a wonderful time to enjoy life and relax, this phase also means you might lose the coverage from the health insurance plan you had through your job. As you age, health problems can become more common. So, having proper health coverage even after retirement is important.
Top reasons to have health insurance after retirement
There are several strong reasons why having health insurance plans in retirement is so important. Here are the top ones:
- Rising medical costs: Medical expenses are steadily on the rise, and they can exhaust your retirement savings in no time. Inflation in the healthcare sector is projected to hover around the 15% mark every year, and this is only expected to rise further. Additionally, if you want to get treated at a private healthcare facility, then it would entail a bigger outlay, draining your retirement corpus. However, a health insurance policy can prevent this from happening. It offers you adequate coverage for medical interventions.
- Higher risk of illness with age: Even if you have been healthy all your life, you may face new health conditions when you get older. Elderly people are more likely to get illnesses such as diabetes, high blood pressure, heart problems, joint pain or even certain cancers. Treatments for these conditions can be very expensive, especially if you need surgery or long-term medicine. Without health insurance, paying for these medical bills from your savings can quickly use up your retirement money.
- Limited income in retirement: Many older people live on a fixed income from their pension or savings, and a major illness could ruin their financial stability. Here, health insurance provides a safety net. It helps in covering the expenses for doctor visits, hospital stays, medicines and other treatments. This means you will not have to worry about huge costs if you get sick.
- Better treatment options: With insurance, you can choose better hospitals or get modern treatments which might otherwise be too costly. This means you can focus on your health rather than your finances.
Tips for buying health insurance for seniors
Buying health insurance as a senior is different from buying it when you are younger. Here are some helpful tips to choose the right plan:
- Check the age limits: Some insurers have an upper age limit for new policies. Always check if you are eligible before applying.
- Look for pre-existing disease cover: Many seniors already have conditions like diabetes or high blood pressure. Check if these are covered, and how long the waiting period is before you can claim for them.
- Check co-payment rules: Some plans for seniors have a “co-payment” rule, meaning you must pay a small part of the treatment cost. Understand this clearly so you are not surprised later.
- Go for lifelong renewability: Make sure your policy can be renewed for life. You do not want to lose your insurance when you are older and need it most.
- Check network hospitals: Insurance companies often have tie-ups with certain hospitals. Look at their list to make sure there is a good hospital near you, so you can get cashless treatment easily.
- Look at what is excluded: Every policy has things it does not cover, known as “exclusions”. Read the policy wording carefully so you know what is not included.
- Consider add-on covers: Some plans let you add benefits like critical illness cover, personal accident cover, or daily cash benefits during hospital stay. These can give you even more protection. If you live with your spouse or other family members, you might also look at family health insurance plans. These cover more than one person under a single policy, which can make it easier to manage premiums and protect the whole household.
- Compare policies: Do not rush into the first policy you see. Compare benefits, premiums, and features of different policies to get the best value for money.
Which government schemes offer health insurance to senior citizens?
In India, there are several government health insurance schemes designed to help senior citizens manage their medical expenses. These aim to support people who have limited income after retirement and cannot afford expensive private insurance. Here are some of the main options:
1. Pradhan Mantri Jan Arogya Yojana (PMJAY)
Often known as Ayushman Bharat, this scheme provides health insurance cover to economically weaker sections. It offers cashless treatment for hospitalisation up to a certain amount per year, covering a wide range of diseases and surgeries in government and empanelled private hospitals.
2. Central Government Health Scheme (CGHS)
Retired employees of the central government and their dependents can get health benefits under CGHS. This scheme provides treatment through government wellness centres and empanelled hospitals, covering a range of illnesses and surgeries.
3. Employees’ State Insurance Scheme (ESIS)
If you were an employee covered under ESIS, you and your spouse may continue to receive certain medical benefits after retirement, depending on your contribution history and eligibility rules.
Conclusion
Retirement should be a time to enjoy life, spend time with family, and pursue hobbies. However, health worries can spoil that happiness. Medical costs can be a serious burden if you do not have a proper health insurance plan in place. The policy protects you from any unexpected medical expenses and allows you to get the best possible treatment without worrying about bills.
If you feel unsure about which health insurance is best for you, help is available. Our experts can guide you to find the right cover for your needs. Just fill out the form on this page, and get the right advice to choose an ideal policy.
FAQs
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Do I need health insurance if I am healthy at retirement?
Yes. Even healthy people can get sudden illnesses or accidents. Medical treatment is expensive, so insurance gives you security.
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What if I already have a disease?
Many insurers cover pre-existing diseases after a waiting period. Check the policy rules before you buy.
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Is health insurance very expensive for seniors?
Premiums for seniors can be higher, but it is still better than paying huge bills during a medical emergency. Government schemes can also help lower the cost.
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Can I get insurance after turning 65?
Some insurers allow new policies up to 70 or even 75 years old, while others have no maximum age. Always ask about age limits.
Co-payment means you pay part of the bill yourself, while the insurer pays the rest. Many senior citizen policies include this, so check carefully.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It is not intended as a substitute for professional advice, diagnosis or treatment. Please consult a certified medical and/or nutrition professional for any questions. Relying on any information provided in this blog is solely at your own risk, and ICICI Lombard is not responsible for any effects or consequences resulting from the use of the information shared.