Best Health Policies after Retirement In India

Best Health Policies after Retirement In India

For quite a few of us, our employer provides medical cover and often bears the cost of medical insurance.  But once you retire you are on your own. One of the first things that hit you is that you need to find is a health insurance cover.   And to our surprise (really!!), suddenly the premiums for most insurers have taken a sharp turn north after the age of 60.  Your health may not have changed much in a year but insurers are keenly aware you now don’t have the power of a group to negotiate.  

I have collated a list of the Best Health Insurance Policies over the age of 60.  For the purposes of comparison I have taken a 61 year old retiree in Pune looking for a cover of 4 lakhs.    For the purposes of our comparison we take policies that offer guaranteed renewal at least up to the age of 80 (About 10 years beyond the average life expectancy in India).

We compare the policies and insurers on:

1.  Premium

2. Sub limits

3. Co-Pay

4.  Servicing Aspects(like claims payment speed and customer satisfaction)

5.  Hospital Network

Premium:  

This is probably the first criteria that people look at.  So let's look at the five most economical plans for senior citizens.

Health Premiums for 61 yrs old couple in Pune. Source www.policylitmus.com

From the comparison above, you can see the premiums vary quite substantially. The most expensive of the top 5 being 90% higher than the most economical. In terms of benefits there is not a whole lot of difference. Most of offer the basic hospitalization, Pre and Post Hospitalization benefits, Ambulance and health check-up.  All that you seems to get for about Rs 14000 extra in Apollo’s Easy Health – Standard is Ayurvedic treatment up to a maximum of Rs. 25000 and Donor Expenses. In case of Tata AIG, you pay an extra 18000 for the same benefit. You decide if this is worth the extra premium.

United India’s family Medicare and Bajaj’s Health Guard offers renewal up to age 80. The rest have lifelong renewal option. If you happen to live beyond 90 years, Future Generali will actually reduce your premiums.

you should find out  the best health Insurance plan for your specific case.

Sub limits and Co-Pays:

Insurer’s and notorious for hidden terms and conditions that you become aware of once the time comes to make a claim.  Of all the terms and conditions there are two you should pay careful attention to. They are sub limits on hospitalization expenses and Co-Pays. These caps can often leave you out of pocket for a substantial amount. Here is a snapshot of how these plans compare on hospitalization sub limits.

While the comparison is self-explanatory, I would like to point out a few key things.  Among the Plans compared Apollo’s Easy Health – Standard has no sub limits.  Rest of the plans have Rs 4000(1% of sum Insured) as the room rent limit.  This amount may be suitable if you are in tier-II city or if you go for a shared accommodation but may not be enough if you want to go for private room in a high end national chain hospital.

United limits the reimbursement amount for major Surgeries to Rs 2,80,000. This may not be such a things if you go to one of the preferred network hospitals of United India Insurance.  The hospitals is the preferred network agree to charge as per United’s agreed rate list. This allow to save up your sum insured for future needs while not having to pay out of pocket.

 Only United’s Family Medicare and Bajaj’s HealthGuard have the requirement of Co-Pay.

Service Parameters:

Network Hospitals: 

One thing that you must consider is whether the insurer has cashless facility in the hospital of your choice. When you have a medical emergency you cannot worry about arranging cash or run around to get reimbursement from the insurer later. In my opinion if the insurer hasn't bothered to have sufficient cashless facility in your city, the insurer doesn't deserve your business.  Please check to ensure that the Insurer has cashless hospitals in your city.

Other Features:

In conclusion I would say that if you are in a tier –II city, Future’s health Suraksha is a good option. If your preferred hospital is a top end national chain in a tier-I city, Apollo’s Easy Health – Standard offers a plan with no sub limits.

Amit Kumar