In a recent notification, the Insurance Regulatory Development Authority of India (IRDAI) scrapped its previous rider for insurers that asked them not to reject life insurance policies for people up to at least the age of 65. The purpose behind the IRDAI’s notification is to allow people in every age group to get access to the benefits of health insurance products. It has also been directed to insurance companies to establish a dedicated channel for claim processing and grievances.

IRDAI’s notification will help senior citizens who couldn’t buy health cover at an appropriate time and those who want to enhance their insurance cover size. IRDAI has also asked insurance companies to develop insurance products for people according to specific age groups. Despite relaxation in the age limit, senior people in the 65 plus age group needs to check every details carefully when they go for a new health insurance policy purchase. Here are some important points that they should be aware of when buying a health policy after the age of 65.

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Premiums Can Be Very High For People Above 65 Age Group

Despite the removal of the maximum entry age for buying a health policy, there won’t be any change in the premium level. For new health insurance buyers, the health insurance companies can now introduce new health policies and levy a higher premium compared to the premium they usually levy on a similar policy for an existing policyholder of same age group.

So, if you are an existing health policy holder, you may continue with it and do not exit for buying a newly launched policy for people above 65 age group. You may compare the policy features and premium if you want to port your existing policy to another policy.

Beware Of Terms And Conditions

Experts believe that though insurance companies will now not put an upper entry age capping on their regular policies but they may now put age-related capping for products which are designed for specific age groups. For example, they may now bring a health policy for young unmarried persons with a maximum entry age restriction of 40 years, for non-retirees they may bring a policy with a maximum entry age of up to 60 years and so on. In their regular policies, they may not have any upper entry age restriction but for policies designed for specific age groups, they may put the maximum entry age capping.

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People who already have a health policy and are above the age of 65 years need not worry about the changes. The new announcement will make way for seniors who missed the opportunity to buy a health policy and they are now above the age of 65 and it will also benefit seniors who want to port their policy after crossing the age of 65.

The author is an independent financial journalist.