There are two aspects that cause concern for individuals when it comes to health insurance. The first is the time period for which they will be covered and the other is the cost that they will pay for this coverage. Both are problem points for senior citizens as they often find themselves without a cover when they most need it. The recent move by the insurance regulator to remove the age limit on new policies is significant as it will change the dynamics of health insurance.
Entry Level Age
Every health insurance policy has a specific age range for those who want to take the policy. For example, this can be something like 91 days to 65 years. This means that anyone who falls into this age bracket can consider taking the policy. Once the various details about the current health and any preexisting conditions are submitted then the health insurance company will decide on the coverage and the premium. The key part here is the entry level age which is the age when the person first takes the policy. Health insurance policies are usually of one to two years in duration so this would have to be renewed after the completion of the time period. The renewal stage isn't considered for entry age restrictions which are implemented only when the policy is bought for the first time.
Removal Of Limit
The removal of the cap of 65 years on health insurance policies means insurers can offer policies to even those who are above this age. Earlier the problem was that even if someone was in good health and if they hadn’t taken a health policy till they were 65 years old or if they had failed to renew their policy in time, then the choices for them became narrow as they could only look at specified senior citizen policies. They didn’t have access to several good policies with relevant features that were offered to other people as their age made them ineligible. The removal of the limit means that there is no problem as far as taking a new policy is concerned because even those who are above this age can make use of the choices that are available in the market. They can take a policy that suits their requirements if they think that this will be beneficial for them.
Tailor-Made Products
Another benefit that the senior citizens will have is there will also be products that meet their specific needs. Those who'd like to access a policy that’s suitable for their age group or demographics can go for such focused products. In this sense, the market regulator has asked insurers to ensure that they have tailor-made products for specific demographics. This includes senior citizens so there would be policies offered by the companies that have features that are more relevant for them. This will help to take care of the exact requirements of the senior citizens that might not be adequately covered in a standard health insurance policy.
Cost Element
The key aspect that senior citizens need to consider is the premiums they end up paying. More companies offering a choice is a good thing as it will have an impact on the premium being charged. However, they have to expect that the premium will be high in the policies that they take at an older age. This, along with the requirement of coverage of pre-existing diseases, will be the crucial factor as it would ensure that there is coverage available for the individual when they actually need it. This has to be balanced with the cost so that there is a reasonable amount that is being paid for the benefit.
