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Insurance For Senior Citizens: Always A Smart Choice

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Insurance For Senior Citizens: Always A Smart Choice
Subhash Nagpal - 01 July 2019

“Aging is not lost youth, but a new stage of opportunity and strength” ~ Betty Friedan

Seniority is not the point where life stops, rather, it ensures that you become much more responsible. We generally look up to our seniors as the ones with experience and who possess a strong sense of discretion. However, we have to understand that old age comes with its fair share of uncertainties and of course health issues. Medical emergencies can happen any time and hence on needs to be prepared for such unforeseen events.

To deal with this uncertainty of tomorrow, it is important for one to get insured in every possible manner. Insurance does not only help in securing the future, but it also allows the person insured to stay away from stress in terms of money. Needless to say, senior citizens need to get themselves insured.

Why Opt For Senior Citizen Insurance?

There are several reasons as to why should senior citizens opt for insurance. While ensuring that you protect your health you can also end up saving a lot of money. If we analyse, we will see that such insurance plans offer coverage for senior citizens aged between 60 and 80 years.

Also, it is a necessity to get insured at this age as this is the time when you are about to retire and would start living on pension or interest. Unforeseen expenses could add a significant dent to your savings. Moreover, one always has to take into account, the aspect of inflation. For instance, you need Rs. 54,183 to maintain the current expenses of Rs 40,000 at the inflation rate of 3%, 20 years from now. Similarly, you need Rs.18,06,111 to maintain the current expenses Rs 10,00,000 at the inflation rate of 3%, 20 years from now.

In such times, if you encounter a medical emergency it might become very difficult to finance it. Having an insurance on such occasions can be very helpful as it is a great help not just monetarily, but also mentally, since it reduces the burden on your family in case of death.

Types of Insurance for Senior Citizens

There are different types of insurance available for senior citizens and these can be segmented into Health Insurance, Travel Insurance and Life Insurance. Let’s discuss them with specific details and their advantages.

Health Insurance

The senior citizen health insurance is exclusively designed for individuals who plan to meet high medical costs by paying a small premium every year. So, if you are a 65-year-old man, and have a 62-year-old wife, for a medical insurance of Rs. 5 lakh, the premium would cost you just Rs 3,000 monthly. For a Rs. 10 lakh medical cover, the premium would be Rs. 4,100. In case of any medical emergency, this health insurance can come to their aid and rescue them at the time of utmost need.

Benefits of Senior Citizen Health Insurance

With proper health insurance, you can get engaged in stress-free planning. We all understand that illness is obvious with aging and one needs to accept fate. But with senior citizen health insurance, you can ensure all the urgent medical expenses that you might incur are taken care of.

Senior citizen health insurance can also be of great help as the breadwinner of the family does not have to worry about the medical expenses and can focus solely on household expenses. In short, with health insurance, you can stay away from incurring any additional debt.

If you are indulged in chemotherapy and dialysis, then health insurance can be of great use as it can cover the daily care cost that you might have to incur. Cancer treatments typically range from Rs. 5-10 lakh, at least. A liver transplant may cost up to Rs 25 lakh. For treatment of a cardiac disease, you may have to shell out Rs 6-10 lakh in a metro hospital. Hence, it is prudent to plan ahead for peace of mind.

Life Insurance

Seniority is the point in life where everybody wants to be cared for, while also ensuring that your near and dear ones are taken care of after you are gone. With senior citizen life insurance policies, you can offer protection to your family.

Types of Life Insurance

1. Term Life Insurance

It is the insurance that provides coverage for a specific period of time. Once the policy period ends, the coverage ends as well. In this plan, the death benefits are paid out at the event of death during the policy period. You have the right to choose the tenure, the sum assured, and payment frequency depending on your needs. For a 40-year-old man, Rs. 1.5 crore term insurance just costs Rs 12,000- Rs 15,000, and is available from lot of insurers like HDFC life, Max life, ICICI Pru, Canara HSBC, and Aegon. However, it is important to check and compare the rates before buying.

2. Whole Life Insurance

It is a comprehensive form of insurance which provides insurance coverage for the entire life. There is no fixed period involved, and in case of death of the contract holder, the payout gets transferred to the designated nominees. Whole Life Insurance Policy also brings some attractive features such as consistent premium payments, tax redemption, cash value growth, and permanent protection. If someone invests Rs 5000 per month from the age of 25, for the next 25 years, they will get Rs 60 lakh life cover, and tax rebate under section 80D. All the maturity pay-outs are also tax free.

The other benefits of a Senior Citizen Life Insurance policy include reduction of future financial worries, and the choice to avail Income Tax Redemption. There are friendly tax slab rates, and special concessions for citizens above the age of 60, which the government has clearly defined. Moreover, it also offers a source of fund for funeral or death expenses, medical expenses, and other unpaid debts.

Travel Insurance Policy

Every child thinks of sending their parents on tour after retirement. It is a gentle gesture that must be brought into action by everyone. But, as it is known that uncertainties can happen anytime and it is always considered smart to take precautions before anything wrong happens.

Travel Insurance is the key to that smartness. With a Travel Insurance Policy, you can get covered for several events that might happen during your trip.

Travel Insurance Policy Covers

It helps you with claim during accidental bodily injury

You get coverage for the loss of your baggage by a common carrier

In case of any medical evacuation

Emergency Cash in case of loss of the travel funds

Expenses that are incurred when you miss a connecting flight

Emergency medical expenses incurred while you are abroad

Expenses incurred while transporting the mortal remains of the insured back home

Whichever insurance policy you opt for, but understand that having a wholesome life insurance policy during your sunset years. It is always a smart choice to get insured during your older days as the world is full of uncertainties. With proper insurance, you can not only get help in monetary terms but you can also help your family in times of crisis.

The writer is the Founder and CEO, ComparePolicy.com

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