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Don’t Make These Blunders When Buying A Health Insurance Policy For Retirement

Take a health policy as early as possible to protect yourself from any unforeseen medical expenses because if you miss out, you may not get many choices after retirement

July 8, 2023
July 8, 2023
Health Insurance Policy

Health Insurance Policy

Before buying a health plan, you must ascertain that the plan being offered is suitable for your individual needs. Sometimes people choose a product that may not fit well with their retirement needs. It’s not easy to get a health policy after retirement due to age-related ailments and a lack of options for senior citizens. So, it’s better to be very careful and avoid mistakes when buying a health policy for your retirement. Here are 3 mistakes that you must avoid when buying a health insurance policy for your retirement plan.

Not Checking The Policy’s Expected Premium After Retirement

Health insurance companies increase the policy premium linked to the age of the policyholders. Some companies may offer a health policy at a low premium for people below the age of 60 but may increase the premium significantly for them after they become senior citizens. It can be a difficult job for senior citizens to find a suitable policy during their retirement period. So, the best option is to find ways to lower the policy premium before your retirement, and if required, you may use the portability option to change your insurance provider.

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“Since you are older, opt for a policy with the lowest waiting period. If the premium looks expensive, you also have the option of choosing a higher waiting period. Premiums for senior citizen policies are typically higher. Another way to bring down your premium is by opting for a co-payment or deductible clause. Under co-payment, a certain percentage of the claim amount is paid by the policyholder, and under the deductible, the absolute amount is paid by the policyholder”, suggests Adarsh Agarwal, Chief Distribution Officer, Digit Insurance.

Not Checking The Maximum Age For Policy Renewal

There can be an age limit in health insurance policies that do not allow lifetime renewal. You must avoid making the mistake of taking such policies because you may not get health coverage when you are after a certain age and when you need the health coverage most. You should check the maximum renewal age applicable to your policy before you get it for your retirement. Prefer a policy that allows lifetime renewal options and that freezes policy premiums after a certain age.

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Ignoring The List Of Inclusions-Exclusions And Terms And Conditions

Imagine you have taken a health policy, but it won’t cover your ailment because it’s on their exclusion list. Will you be able to bear the hospitalization cost when you are retired? You must check the list of inclusions, exclusions, and applicable terms and conditions, such as those related to pre-existing disease and treatment-specific capping, etc.

Even after purchasing a health policy, it’s important to review it periodically. Stay updated with any changes in the policy terms, coverage, or network providers.

 

The author is an Independent Financial Journalist

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