Seniors seeking higher health cover

General insurance companies are seeing a rise in the sum assured in health plans taken by senior citizens. Insurers say from an average of Rs 2-3 lakh, the size of cover has risen to Rs 5-6 lakh.

M Ravichandran, president, insurance, Tata AIG General Insurance, said to keep up with medical inflation there was a corresponding increase in the sum assured.

Ravichandran said since 2013 there had been a five-fold increase in the number of policies purchased by people above the age of 60. He added senior citizens preferred face-to-face interactions with agents and other intermediaries before purchasing health insurance.

India is estimated to have an elderly population of around 80-90 million and by 2050 this number is expected to rise to 315-320 million.

Insurance companies are bringing out specialised plans for policyholders above the age of 60. As long as they do not have any pre-existing condition, they are considered a good risk.

Rakesh Jain, chief executive officer, Reliance General Insurance, said, "There is a rise in the sum assured for indemnity health covers taken by senior citizens and other policyholders. With medical costs going up, the average size of policies is touching Rs 5-6 lakh."

Though insurers do not turn away senior citizens, they say policyholders are encouraged to take health cover early in life because premiums are lower at a younger age.