NEW DELHI: The decision by the insurance regulatory and development authority of India (IRDAI) to remove age restrictions on health insurance policies is a significant move that reflects a more inclusive approach towards insurance coverage in India. Earlier, most insurance companies would not sell health insurance products to persons above 65 years.
This change allows individuals of all age groups to access health insurance without being limited by age-related constraints. It indicates a progressive step towards ensuring that more people, including the elderly population, can avail of essential health coverage and benefits. By eliminating age restrictions, the IRDAI is promoting greater financial security and healthcare access for a broader segment of the population, ultimately enhancing the overall insurance landscape in the country.
Rakesh Jain, chief executive officer (CEO), Reliance General Insurance said, “For senior citizens, this initiative signifies an end to the constraints that previously barred many from securing health insurance past a certain age. This move fosters financial security by allowing older individuals at a vulnerable age to access crucial healthcare without age-based barriers. It will encourage long-term health planning and innovation in insurance products, catering to diverse age groups’ needs.”
“The competitive market dynamics spurred by this change may result in improved offerings and services for consumers. Insurers will now be encouraged to design products that cater specifically to the needs of senior citizens, including those with pre-existing conditions,” Jain stated.
Adapting to the change
With the removal of age restrictions on health insurance policies in India, insurers will need to adapt their underwriting practices to effectively manage the increased risks associated with insuring older demographics. Insurers may need to reevaluate risk assessment methodologies, pricing structures, and coverage options to accommodate a more diverse age range of policyholders.
This shift towards a more inclusive approach ensures that individuals of all ages have the opportunity to obtain adequate protection against medical expenses, promoting financial security and better healthcare access for everyone. By embracing this change, insurers can contribute to creating a more accessible and equitable healthcare ecosystem, where individuals can obtain the necessary coverage regardless of their age, thereby enhancing overall societal well-being.
According to Prasun Sikdar, CEO, ManipalCigna Health Insurance, the removal of the age cap on health insurance policies will provide senior citizens with complete peace of mind, knowing that they have access to quality healthcare when they need it most during the golden years of their life.
ManipalCigna recently launched a ‘Prime Senior’ plan that gives flexibility with lower waiting periods and provides coverage for pre-existing disease conditions from 91st day onwards. Sikdar says understanding the evolving needs of seniors and the rising medical inflation, this pivotal change is an opportunity to extend our unwavering support to the elderly in safeguarding their health and well-being.
Siddharth Singhal, Business Head, Health Insurance at Policybazaar.com, highlighted the significance of removing age restrictions in health insurance policies that opens up access to comprehensive health coverage for senior citizens. He made it clear that while age restrictions are lifted, standard terms and conditions, such as waiting periods, would remain consistent for all policyholders.
Moreover, he recommended that individuals purchasing new policies should precisely examine the policy particulars, such as limitations on room rent, co-payment obligations, and restrictions on certain treatments. This comprehensive assessment ensures that policy buyers understand the extent of their health insurance coverage and can make well-informed choices. He also mentioned that this regulatory move fosters inclusivity, simultaneously it would also encourage insurance companies to innovate and develop insurance products tailored to the diverse needs of different age groups.
How to choose a plan?
According to experts, when choosing a health insurance plan, seniors should consider various factors to strike a balance between comprehensive coverage and affordability. They should opt for plans with shorter waiting periods for pre-existing conditions to ensure timely coverage access. Balance the premium affordability with the level of co-pay, as lower premiums may entail higher co-pay percentages.
They should look for features like no-claim bonuses to combat medical inflation and compare plan features online before making a decision. They should ensure that they have an adequate sum insured and consider a top-up plan for additional coverage. While copayment is now optional for senior citizens, higher premiums can eliminate this requirement.
Some policies also allow for reducing waiting periods for pre-existing conditions by paying a higher premium. Senior citizens should opt for quarterly or monthly premium payment options if annual payments are burdensome. Plans catering to seniors often include features like home treatment and nursing care, with relaxed underwriting norms accommodating pre-existing conditions like diabetes and hypertension.