What is Senior Citizen Health Plan?
Old age comes with more chances of contracting diseases and falling sick that may cost huge medical expenses that you have to pay from your pocket. Going for medical treatment is quite distressing, especially in the advanced ages when one does not have a regular or limited source of income.
The senior citizen health plan is a customized health plan catering to the health-related needs of elderly people. Such plans are somewhat costly compared to regular health plans basis the plan benefits, features, inclusions, etc. You have the option to buy an individual senior citizen health plan or choose an umbrella plan that covers you and your spouse if you fall in the category of senior citizens or can take for your parents as well. It is thus a wise move to buy a Senior Citizen Health Insurance Plan for older people that covers expenses incurred due to unforeseen medical emergencies.
What kinds of Senior Citizen Health Plans can I opt from?
Senior Citizen Health Plans are basically of two types.
Indemnity Plans
Under Indemnity based health plans, the claim or payout is paid as per the actual expenses sustained by the insured for getting the treatment done subject to the health cover taken. Indemnity plans don't pay you the total sum assured under the single event of hospitalization, and the insured is indemnified to the extent of the actual payout.
Fixed Benefit Plans
Fixed benefit health plans are the plans which offer you a fixed amount of benefits and are paid as lump-sum benefits under your health plan. Fixed benefit health plans pay you the complete policy sum assured on the occurrence of the insured event without taking into account the actual hospitalization or treatment expenses. Examples of such plans are Critical Illness Plans.
What are the Benefits of Buying a Senior Citizen Health Plan?
The benefits of buying a senior citizen health insurance plan offer you extensive coverage under your health plan, which are:
Hospitalization Expenses
Senior citizen health insurance plan safeguards the insured by paying the hospitalization expenses, which include
- In-patient Hospitalization Expenses
Your senior citizen health plan will cover the medical expenses for a minimum period of 24 hours of hospitalization. Typically, your health insurer will pay for room rent, nursing, medical practitioner, anesthesia, blood, oxygen, surgical appliances, operation theater charges, medicines, drugs, consumables, and other devices required during a surgical procedure.
- Pre Hospitalization Expenses
Related expenses which are covered 30 days (may vary from insurer to insurer) prior to the actual hospitalization which is related to your medical treatment under the scope of the plan which may include follow up visit charges of a doctor, medicine expenses, laboratory tests, etc.
- Post Hospitalization Expenses
Related expenses for your medical treatment for 60 days post discharge from the hospital are also covered under the scope of senior citizen health plan like fees for a follow up with doctor post discharge, expenses done for diagnostic tests to ascertain the recovery of the treated medical illness, etc.
Daycare Procedures
Certain treatments that do not require a minimum of 24 hours of hospitalization and are treated in less time because of technological innovation are also part of the senior citizen health policy. Every insurer has a list of daycare treatments covered under the plan's scope.
Domiciliary Treatment
Expenses pertaining to the medical treatment done at home are also paid under the senior citizen health policy, which otherwise requires hospitalization for the same. This treatment can be undertaken by the undertaking given by the medical practitioner for getting it done at home due to unavailability of space in the hospital or due to the critical condition of the insured patient, etc.
Hospital Cash Benefit
A hospital cash allowance is payable on a day-to-day basis. The hospital cash benefit depends on the terms of the policy. A specified minimum stay in the hospital is required to avail of this facility.
Organ Donor
Expenses related to the treatment of the organ donor are also paid under your senior citizen health plan in the need of an organ transplant.
Cashless Treatment
By taking a senior citizen health plan, the insured may avail cashless medical treatment for his/her illness or disease if the insured chooses to get it done under the listed framework of the network hospitals of the insurer.
No Claim Bonus
You are entitled to a no-claim bonus for your senior citizen health policy, which is a benefit accrued in the event of a claim-free policy year. Your insurer will reduce your premium by the bonus amount or may enhance your health cover by the same.
Health Check-ups
Some insurers offer free health checkups on an annual basis and claim-free years. With a senior citizen health plan, you can avail of basic medical checkups subject to the terms specified by the insurer and plan you have opted for.
Tax Benefits
Senior Citizens can avail of tax benefits of up to Rs. 30,000 each year towards the premium paid for their health policy. If you are paying the premium for the health policy of your parents, you become eligible to avail of this benefit. These benefits are applicable under section 80D of the Income Tax Act 1961, subject to changes in tax laws.