India has the world’s second largest population of elderly people above 60 years and, by 2050, it is projected that approximately 20 per cent or 1.3 billion Indians will be senior citizens. The significant increase in the number of elderly — due to increase in life expectancy — is likely to put immense pressure on healthcare services and impact the country’s socioeconomic development.
Apart from health issues, a majority of elderly people face financial difficulties and are mostly dependent on family. According to a recent survey by Agewell Foundation, an NGO working towards the welfare of the old and the infirm, a majority of the elderly people cite pension as the main source of income, which is barely enough.
Economic insecurity causes mental stress on the aged, who are often reluctant to approach others for funds. In many cases, they are left to fend for themselves, or forced to spend their twilight years in the solitary confines of their homes, or in old-age homes. In most cases, though, all that they need is emotional sanctuary, the care, comfort and companionship of loved ones. And, when they don’t find it, they turn to support groups or others with similar problems.
Among other findings, the survey revealed that health was the most critical risk factor. Four-fifth of the 15,000 urban and rural respondents said most of their financial problems were related to medical and healthcare issues. As age advances, so does vulnerability to sickness and crippling expenses. The best way for the elderly to protect themselves against a medical and financial emergency is to purchase a Senior Citizen Health Insurance Policy of up to Rs 10 lakh. The sum assured can be more depending on the insurance company.
The insurance plan comes with a range of benefits, including absence of pre-insurance medical tests, coverage of pre-existing diseases from the second year onwards, and medical consultations as an outpatient in a network of hospitals, which considerably reduces the financial strain on the elderly and allows them to lead a less stressful life. While many insurers provide senior citizen health insurance cover, the challenge is to look for a policy that offers the best benefits.
Some of the important factors to consider while buying a policy are:
Sum insured: One must buy a policy with a substantial cover, for higher the face value, higher the final coverage provided
Coverage: The plan should cover a broad spectrum of illnesses, particularly critical illnesses, and offer maximum coverage with minimum exceptions
Waiting periods: Many policies have waiting periods for specific diseases and specifically for those that are Pre-Existing. Care should be taken to opt for policies that have the minimum waiting period
Hospital network: Opt for a plan that includes a wide network of hospitals specialising in a range of medical treatments and consultations.
Premiums: Compare the rates of policies offered by various insurers and buy one that not only fits your budget but also provides maximum benefits.
Other factors: Look for pre-insurance medical tests, pre- and post-hospitalisation expenses and lifetime renewal of policy.
To sum up, health insurance is like a roof over one’s head. So, your post-retirement years are without stress about finances. Above all, insurance allows the elderly to lead life with dignity.
Economic insecurity
Economic insecurity causes mental stress on the aged, who are often reluctant to approach others for funds. They are left to fend for themselves, or forced to spend their twilight years alone
(V Jagannathan, CMD, Star Health Insurance)