Why Do You Need Health Insurance Coverage After Retirement?

Retirement is the best time of your life to enjoy the rewards of all the hard work you have put into your career. 😌 You will make plans for how to spend this stage of your life as retirement draws near.

But alongside the excitement, it’s natural to feel some financial worries, especially about healthcare. The fear of expensive medical treatments eating into your savings is a common concern, making it essential to have a solid financial backup.

That’s why health insurance after retirement is a must for those over 60. It provides peace of mind, ensuring you get the best medical care without the stress of heavy expenses. Read this article to understand how health insurance helps after requirements.

Post-retirement health insurance coverage guarantees full health-related financial coverage, including hospitalisation, in-patient treatment, diagnostic test costs, critical illness coverage, and yearly check-ups.

According to Global Data of Life Expectancy, India's life expectancy rose to 68.2 years in 2024 (1). Thus, it is important to make advance plans to pay for your healthcare needs in the future.

Buying health insurance after retirement is essential as it ensures you have access to quality healthcare without worrying about financial constraints. Here are the top 5 reasons why you should consider purchasing medical insurance after retirement:

Rising Healthcare Costs

Healthcare costs are increasing every year, and it's essential to have insurance that can cover these expenses. A comprehensive health insurance policy saves you money on doctor visits, medications, and hospital stays.

In the retirement stage, it becomes more important to have a financial cushion for covering medical costs since you have a limited income source and more probability of adverse health situations at that stage.

Access to Better Healthcare

With health insurance, you may have access to a broader network of healthcare providers and specialists. This ensures you receive the best possible care and treatment for your health conditions. Also, health insurance plans often provide access to preventive care services and complimentary health check-ups.

Handle Unexpected Medical Emergencies

With health insurance coverage in place and by paying a predetermined premium in a planned manner towards a healthcare policy, retirees can better manage those unplanned medical situations, especially chronic illnesses or injuries, that can otherwise devastate their lifetime savings.

Peace of Mind

For retirees who are often on fixed incomes, health insurance can be a major factor for peace of mind. With health insurance up your sleeve, you are confident of affording necessary medical care if needed. It also provides access to affordable, preventive care with which you can be aware of your body's health.

Financial Security

Given medical inflation and the requirement for routine medical care in old life, your savings will quickly run out if your retirement money is used to pay for hospital costs. You can deal with medical emergencies worry-free if you have health insurance.

Selecting the right health insurance after retirement is crucial for financial security and quality healthcare. Here is a step-by-step guide to selecting the right medical insurance after retirement:

Step 1: Consider Your Healthcare Requirements

Take some time to think about your healthcare needs, both now and in the future. This can help you determine what type of insurance plan is best for you.

For example, if you have chronic conditions that require regular care, you may want a plan with low co-pays to help with out-of-pocket costs. Look for plans that cover regular and chronic conditions that require long-term care.

Step 2: Check if the Pre-Existing Conditions are Covered

As we age, the risk of developing pre-existing medical conditions increases. Waiting for years for your pre-existing conditions to be covered by insurance is not an option at this senior age. Hence, select a plan that covers these pre-existing conditions and does not have any waiting periods for coverage.

Step 3: Check for Domiciliary Care Option

Domiciliary hospitalisation, also known as home care, is a form of care provided to individuals in their own homes by trained caregivers or healthcare professionals.

As a senior citizen, you might require personalised care and attention to maintain your physical and emotional well-being. Hence, it is one of the major features to look for in your health insurance policy.

Step 4: Evaluate Your Cost in All Aspects

Research and compare different kinds of policies from different insurers. Not just the premium, also consider deductibles, co-pay, coinsurance and out-of-pocket maximums to get a better sense of the total cost of the plan.

Knowing what each option covers and what you are eligible for can help you make informed decisions.

Step 5: Choose an Insurer with a Vast Number of Network Hospitals

If you have preferred healthcare providers or specialists, ensuring they are on your health plan's network hospitals list is always a good idea. Out-of-network care can be much more expensive and may not be covered at all.

Also, pay utmost importance to an insurer having many cashless hospitals. During a medical emergency, you do not want to worry about arranging for cash. Choose a health insurance plan that provides cashless hospitalisation facilities to ensure a hassle-free experience.

Step 6: Hassle-Free Claim Process

The importance of a hassle-free experience in a health insurance claim cannot be overstated, especially for senior citizens who are mostly not tech-savvy and may face difficulties in filing claims online.

A good health insurance policy should have a simple and straightforward claim process that is easy to understand and navigate, with clear instructions on how to file a claim. A dedicated team to assist senior citizens in filing claims and provide them with a hassle-free experience would be the icing on the cake.

Step 7: Consider Add-ons and Riders

Other riders can be purchased in addition to health insurance coverage. Riders such as the critical illness rider or consumable cover add-on should be considered essential to prevent excessive costs and receive a lump sum payment upon retirement.

Several senior citizen health insurance plans initiated by the government of India provide retirees with access to health insurance. Some of such government-initiated programmes are listed below:

PMJAY or Pradhan Mantri Jan Arogya Yojana

A government-run health insurance program called the Pradhan Mantri Jan Arogya Yojana (PMJAY) offers free coverage for medical procedures, hospital stays, operations, and prescription drugs. Seniors who are below the poverty line can apply for this.

SCHIS or Senior Citizen Health Insurance Scheme

One government-sponsored health insurance program that covers medical costs involved during hospitalisation is the Senior Citizen Health Insurance Scheme (SCHIS). Seniors who are 60 years of age or older and do not have access to other health insurance coverage are eligible for it.

RSBY or Rashtriya Swasthya Bima Yojana

A government-sponsored health insurance program called the Rashtriya Swasthya Bima Yojana (RSBY) covers hospital stays, domiciliary hospitalisation and medicines. It offers a coverage of Rs. 30,000 per family in a year on a family floater basis by paying a premium of just Rs. 30 per annum.

CGHS or Central Government Health Scheme

High-ranking employees of Indian Railways, Supreme Court judges and other important workers under the central government can benefit from this plan. CGHS is available in 82 Indian cities, covering more than 42 lakh government employees and pensioners.

ESIS or Employees' State Insurance Scheme

A government-run health insurance program called the Employees' State Insurance Scheme (ESIS) covers expenses incurred during hospitalisation. While the plan was initially restricted to Kanpur and Delhi factories only, it has since been upgraded to support more than 7 lakh factories across India.

To Sum Up:

Everyone deserves a stress-free lifestyle post-retirement where you can spend more time with your loved ones, engage in hobbies, and not have to worry about medical expenditures in the case of hospitalisation after working for 35 - 40 years of your life. 😌

Therefore, to eliminate the financial strain in retirement, consider purchasing a health insurance policy in advance.