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Business News/ Brand Stories / The Top Benefits of Senior Citizens' Health Insurance

The Top Benefits of Senior Citizens' Health Insurance

Since people lose their earning potential after retirement, it is essential to have a financial tool to deal with a health problem.

The Top Benefits of Senior Citizens' Health InsurancePremium
The Top Benefits of Senior Citizens' Health Insurance

Maintaining good health is difficult in today's era. Polluted cities, improper nutrition, a stressful lifestyle, and little or no exercise are all risk factors for poor health. The issue becomes significantly worse for retirees after the age of 60. Older persons are more vulnerable to sickness than younger people. Since people lose their earning potential after retirement, it is essential to have a financial tool to deal with a health problem. That is where senior citizen health insurance comes in.

6 Advantages of Senior Citizens Health Insurance

Let’s look at six significant advantages of investing in a senior citizen health insurance plan.

1. Cashless Hospitalisation

Insurers who offer senior citizen coverage for health-related issues have formed partnerships with several healthcare institutions that offer advanced and specialised treatment options. A policyholder can avail of cashless treatment at these healthcare establishments. In the event of a medical emergency, if the insured is admitted to an insurer's network hospital, he/she is not required to pay anything out of pocket for treatment except the deductible.

For example, Mr A, a 65-year-old retiree with 10 lakh of health insurance from XYZ company and a 1 lakh deductible, suffered a heart attack. He was brought to the hospital, and the doctor advised him to have an angioplasty. The total treatment bill here was 5 lakh. In this situation, the insurer will directly settle the expense of 4 lakh with the hospital, leaving Mr A to pay 1 lakh.

2. Pre- and Post-Hospitalisation

Let’s illustrate this with two scenarios. Mr A has had a chronic cough for the past 30 days. To validate his health, the doctor records a series of medical examinations. He was diagnosed with bronchial infection. The doctor put him on medication for 20 days, but his health did not improve, and he was admitted to the hospital on the 21st day after being diagnosed with the ailment.

Under the pre-hospitalisation clause, the insurer will pay for medical screenings required for disease diagnosis, as well as any medications he took before being admitted to the hospital. 

Another scenario arises after being discharged from the hospital: Mr A’s condition necessitates the presence of a nurse at his home for the next 30 days. Additionally, he needs to visit the doctor at the outpatient department (OPD) frequently for health monitoring. The expenses he incurs in this regard will be reimbursed under the post-hospitalisation clause.

3. No Claim Bonus

Insurers compensate senior citizens for staying fit and active with a no-claims bonus. For example, if Mr A purchased a policy for 5 lakh but did not file a claim in the first year, the insurer will increase the total sum insured by 50,000. If he does not file a claim for five consecutive years, the sum insured would rise to 7.5 lakh. However, some insurers offer the option of increasing the sum insured or lowering the policy premium as a no-claim bonus.

It is vital to note that the increased sum insured under the no-claim bonus cannot exceed 50% of the base coverage. 

4. Annual Health Check-up

Most health insurers include free health screenings in their plans. That means if a policyholder experiences chest pain, shortness of breath, or any other minor or severe symptoms indicating a major health issue, the person can receive a free test at a network hospital. However, because this is a complimentary benefit, 1-2 full evaluations are permitted every year. The insured will bear the cost of any further test if it is related to a routine check-up.

5. Pre-Existing Illness

A 60-year-old person is quite likely to have a health concern. Senior citizen health insurance's best feature is that it also covers pre-existing conditions. However, there is one condition: the insured must wait until the 'waiting period' is over before using the healthcare plan to treat such ailments.

6. Tax Benefits

A senior citizen healthcare plan not only offers financial coverage against health conditions but also provides tax benefits. Under Section 80D of the ITA, there is a provision that allows people over the age of 60 to get a deduction on the premium paid up to 50,000 in a year. If the senior citizen has undergone any preventive health check-up, such expenses can also be claimed as up to 5,000. However, the preventive health check-up deduction is included in the upper limit of 50,000.


Senior citizens' health insurance is a must for people above 60. It offers financial protection and peace of mind. It further ensures access to quality healthcare without the burden of high costs, covering pre-existing conditions, providing no-claim bonuses, and even offering tax benefits. The benefits this health insurance offers make it an invaluable asset for older adults in their golden years.

Disclaimer: This article is a paid publication and does not have journalistic/editorial involvement of Hindustan Times. Hindustan Times does not endorse/subscribe to the content(s) of the article/advertisement and/or view(s) expressed herein. Hindustan Times shall not in any manner, be responsible and/or liable in any manner whatsoever for all that is stated in the article and/or also with regard to the view(s), opinion(s), announcement(s), declaration(s), affirmation(s) etc., stated/featured in the same.

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Published: 01 Apr 2024, 08:18 PM IST
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