Medical Insurance for Senior Citizens with Limited Income: Affordable Options That Work

You may be prone to various illnesses along with your age, leading to a constant need for medical attention. In these cases, medical insurance for senior citizens comes to the rescue, reducing the exhaustion of retirement savings.

Let us read more about health insurance for senior citizens with limited income, along with the benefits.  

What are the Different Medical Insurance Options for Senior Citizens?

For senior citizens with limited income, the government offers health coverage through the Ayushman Bharat scheme and additional state-specific plans. Additionally, several private and public sector insurance companies also provide tailored, budget-friendly policies. These include:

1.      Government Health Insurance Schemes

These are some of the few central and state government health schemes, which senior citizens with limited income can easily avail to get access to high-quality treatment:

• Ayushman Bharat: It is the most impactful and recent option for senior citizens aged 70 or above. This policy provides free annual health coverage up to 5 lakh per family for secondary and tertiary hospitalisation at empanelled hospitals.

• Rashtriya Swasthya Bima Yojana (RSBY): This is an older government scheme that specifically targets families below the poverty line (BPL) and provides health coverage for them and their families. It offers a sum insured of Rs. 30,000 per year for a family of five.

• State-Specific Health Schemes: Many state governments run their own health insurance schemes that offer subsidised or free medical care to eligible senior citizens. They focus on economically weaker sections, including Mukhya Mantri Chiranjeevi Yojana (Rajasthan), Karunya Health Scheme (Kerala), and West Bengal Health Scheme.   

2.      Budget-Friendly Policies from the Public and Private Sectors

Several public and private best health insurance in India offer affordable health insurance for senior citizens that can be an option for those who are not eligible for AB PM-JAY or want additional coverage. These include:

• Senior Citizen Health Insurance: This plan is suitable for individuals aged between 60 and 75 who do not require a pre-insurance medical screening. It covers pre-existing diseases after a reduced waiting period.  

• Arogya Sanjeevani Health Plan: It is a basic health insurance policy mandated by IRDAI and offered by many insurance companies. This is an affordable and standardised coverage, making an effective choice for those who are seeking essential hospital coverage.

• Mediclaim Policy for Senior Citizens: For enhanced protection, a senior citizen can combine a government scheme with a private top-up plan. A senior citizen covered under the AB PM-JAY scheme can purchase a private top-up plan, ensuring higher coverage options. 

How to Choose an Affordable Medical Insurance for Senior Citizens?

If you are comparing low-cost options, then consider these factors:

1.      Co-payment Clause

Understand the co-payment clause carefully, as these can vary greatly between different plans. Although a plan with a co-payment has lower premiums, it can lead to higher out-of-pocket expenses later. Some top-up plans offer a co-payment waiver as an add-on.

2.      Waiting Periods

Many senior citizens have pre-existing medical conditions due to lower immunity. Thus, it is beneficial to look for a plan with the shortest possible waiting period for PEDs, which are typically 1 to 3 years.

3.      Sub-limits

Some policies cap the amount they will pay for specific expenses, such as room rent or certain treatments. Look for plans with no room rent restrictions or disease-specific sub-limits to avoid unexpected costs.

4.      Cashless Network

A large network of hospitals allows for cashless treatment, which can be very convenient during a medical emergency. Ensure that your selected plan has a large network of hospitals in your area for convenient cashless claims.

5.      Lifelong Renewability 

Opt for a policy with lifelong renewability to avoid any coverage issues as you grow older. Additionally, look for insurance companies with a higher claim settlement ratio for a smoother claim process.

6.      Consider a Top-Up Plan

Whether you hold a personal health policy, a corporate plan, or a government scheme like AB-PMJAY, adding a super top-up can expand your coverage substantially at an affordable cost.

Final Words

Choosing the right medical insurance for senior citizensinvolves considering the different terms and conditions of different companies. Try to look for various government schemes to get optimum coverage options during medical emergencies. Additionally, buy health plans from companies with a high claim settlement ratio for a smoother claim process.   

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