Health plans get limited with age. Insure your parents now!

Advancing age brings with it a host of medical conditions. The Longitudinal Ageing Study in India (LASI), published in January 2021, conducted a survey of individuals above 60. The survey pointed out the following –

• 55% of the individuals suffered from a chronic illness
• 40% of them had one or the other form of disability
• 20% suffered mental conditions
• 27% of the study group had multiple morbidities 

The figures are not surprising because, with age, the body starts getting weaker and more prone to illnesses. Coupled with lifestyle choices, different types of illnesses and morbidities set in. As such, there is a frequent need for medical attention for older individuals. Since medical costs are expensive, a health insurance policy becomes the need of the hour.

Health insurance for the elderly

When it comes to buying health insurance for the elderly, like your parents, there are a few challenges that you might face. These include the following –

1. The entry age limit

Except for senior citizen policies, most health insurance plans have a limit on the entry age. This limit is, usually, 65 years. This means that individuals above 65 years of age are not allowed coverage. This limits the choice of plans available for your parents.

Though there are some plans that do not pose restrictions on the entry age, they might charge a higher premium. 

Coverage restrictions

Insurers know that older individuals are more likely to make Insurers know that older individuals are more likely to make a health insurance claim in their policies. As such, they might restrict the scope of coverage. Moreover, there might be sub-limits on the coverage features that might result in out-of-pocket expenses.

Co-payment clause

Under most health plans, if the insured is aged 60 years or above at the time of buying the policy, there is a co-payment clause. Co-payment means that the policyholder would bear a part of the claim whenever the claim is raised. 

This co-payment clause, thus, also converts to out-of-pocket expenses for you.

Pre-existing waiting period

Every indemnity-oriented health insurance plan has a pre-existing waiting period. This waiting period is applicable for pre-existing conditions, i.e., medical conditions that your parents might have when buying the policy. The waiting period can be 12 months to 48 months long.

If your parents do have a pre-existing condition, the waiting period would limit the coverage for such conditions in the initial years.

Higher premiums

Lastly, the premium for your parents’ health insurance plans would be higher as health risks increase with age.

(Find out if you can get health insurance after 55)

How to buy health insurance for your parents?

When it comes to buying health insurance for your parents, remember the saying – the early bird catches the worm. Buy the plan as early as possible, i.e., when your parents are in their early 50s. Buying early would give you the following benefits –

1. The choice of plans would be wider when your parents are relatively younger
2. You might be able to avoid possible coverage limitations that are imposed at higher ages
3. The co-payment clause would not apply if your parents are not in their 60s at the time of purchase
4. They can wait out the pre-existing waiting period easily. This is because, when your parents are younger, they might not have any pre-existing conditions. Even if they do, the condition might not be very severe to require frequent medical attention. (Know more about pre-existing conditions in health insurance)
5. ​​There are specific waiting periods too for illnesses and treatments like cataracts, joint replacement surgeries, etc. When you buy the plan early on, your parents can wait out the specific waiting period and then avail of coverage for their illnesses.
6. The premiums would initially be lower, especially if they do not have any pre-existing ailments.

Senior citizen plans – another alternative 

All is not lost if you have missed the early bird bus and your parents are in their 60s. There are senior citizen health insurance plans too. Senior citizen health plans allow coverage for older individuals, i.e., individuals aged 60 and above. You can, thus, provide health insurance coverage to your parents with senior citizen plans.

Some of the aspects of the senior citizen plan that demand attention are as follows –

• The sum insured is usually restricted. Under most plans, you can avail of coverage of up to Rs.10 lakhs or Rs.15 lakhs. However, some plans also extend coverage up to Rs.25 lakhs.
• The coverage features might have sub-limits given the high-risk nature of the plan.
• Pre-entrance health check-ups of your parents might be needed. Insurers usually issue the policy after ensuring that your parents do not face imminent medical threats.
• Value-added coverage benefits like sum insured restoration, OPD coverage, etc. might be missing 

The verdict

There are no two ways to say it – age plays a spoilsport when buying health insurance. So, if you are looking for health insurance coverage for your parents, the earlier the better. Insure your parents when they are in their 50s so that you can get the benefit of a wider scope of coverage. If your parents have crossed the 60 milestones, look for plans with no entry age restrictions or senior citizen policies. Do not skip health insurance because medical expenses have become unaffordable. And since your parents might need medical attention, securing your finances becomes a must.