Senior citizens may see spike in premiums in wake of Covid-19 crisis

Since they are more vulnerable, medical insurers may become more wary

With a lot of medical insurance policies coming up for renewal during the March-April period, senior citizens would be a worried lot. The Covid-19 crisis has hit the elderly quite badly. And there are chances that insurance premiums for them might go up, say industry experts. “Insurers were already planning to increase premium across various age groups. However, since the likelihood of filing claims for Coronavirus by senior citizens is more than the average filed health claims, insurers may increase the premium in anticipation. 

Chances are health premiums may see a hike of 30-50 per cent for senior citizens,” says Rakesh Goyal, director, Probus Insurance Broker. Naval Goel, CEO & Founder, PolicyX.com, however, feels that the premiums for senior citizens may see an overall rise, and not specifically because of the virus because Covid-19 is like any other diseases which are liable to get the coverage under the basic health insurance plan. 

However, one point that has come across clearly from the experience of countries like Spain and Italy is that the elderly, aged 60 and above, are at much greater risk than the young. They have a less robust immune system and already have health conditions like heart or lung disease, diabetes, and others which affects their ability to fight infectious diseases. Since the cost of hospitalisation and treatment for this disease and accompanying complications can be quite high, it is imperative that people in this age group have health insurance.   

 

 

Don’t buy disease-specific policies: Senior citizens should avoid the disease-specific covers being sold for the treatment of just Coronavirus infection. “Disease-specific covers are not advisable for senior citizens as they are susceptible to multiple diseases due to their age. They should opt for a comprehensive health insurance indemnity plan,” says Anand Roy, managing director, Star Health and Allied Insurance.

Try to include in a regular plan: Senior citizens’ plans should not be the first choice for those aged 60 and above. “If an individual is above 60 and is not covered under any health plan, only then should he think of senior citizen health plans,” says Rakesh Goyal, director, Probus Insurance Broker. These plans come with various restrictions. “Senior citizen plans have compulsory co-pay requirement and often have sub-limits. Their premiums are also higher compared to a regular plan,” adds Goyal. He suggests that many regular plans allow entry up to the age of 65. One should try to include an older relative in a regular plan before thinking of a senior citizen’s plan. 

 Go for a minimum sum insured of Rs 10 lakh for senior citizens. Buyers should compare both pricing and features of products from various players at the time of purchase. However, as Goyal explains, a higher sum insured doesn’t always mean that the entire medical expense will be covered. Due to sub-limits and co-pay clause, part of the treatment expenses will have to be borne by the policyholder. Hence, do check for these clauses at the time of purchasing or else you could be in for an unpleasant surprise. 

Buy critical illness cover: Regular health plans cover hospitalisation expenses. They may prove insufficient in case of a major, life-threatening ailment. “Medical treatments for diseases like cancer, multiple sclerosis, kidney failure, bypass surgery and others can be very costly, and the sum insured of a regular health plan may not suffice to cover the cost. That’s when having a critical illness plan proves beneficial,” says Goyal.

Another option for augmenting the sum insured is a super-top-up over and above the base plan. “If a senior citizen is able to get a super top-up, it’s a great idea for increasing the coverage at a low cost. However, for this age segment, not too many choices for top-up or super top-up plans may be available,” says Roy.