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75 Years Old with Expensive Med Insurance - What's a Better Option?

Ramalingam

Ramalingam Kalirajan  |6991 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Aug 08, 2024

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more
SUBHAS Question by SUBHAS on Aug 02, 2024Hindi
Money

I am 75 yrs and my wife 64.We are having Med insurance from National Ins.The premium is going leaps and bounds and it is very difficult to continue now( I am paying now maybe for 20/25 years. What is the best scheme to switch over

Ans: You have been diligently paying for medical insurance for the past 20 to 25 years. The increasing premiums have made it challenging to continue with the current policy. This situation is common among senior citizens, as health insurance premiums tend to rise significantly with age. Here are some actionable steps to consider in finding a more affordable and sustainable solution.

Evaluate Current Coverage

Before making any changes, it’s essential to evaluate your current medical insurance coverage. Consider the following:

Coverage amount: Is the sum insured adequate for your and your wife’s healthcare needs?

Benefits: Are there specific benefits or features in your current policy that are crucial?

Network hospitals: Are the hospitals you prefer included in the insurer’s network?

Understanding these details will help you compare your current policy with potential alternatives effectively.

Consider Portability

Health insurance portability allows you to switch your existing policy to a new insurer without losing the continuity benefits. When considering portability:

Compare policies: Look for policies with similar or better coverage at a lower premium.

Continuity benefits: Ensure that the new insurer honors the waiting periods already served under your current policy.

No-claim bonus: Check if the new insurer will carry forward any no-claim bonus you have accumulated.

Portability can be a viable option to maintain your benefits while potentially reducing premium costs.

Look for Senior Citizen Policies

Many insurance companies offer policies specifically designed for senior citizens. These policies often have:

Higher entry age limits: Policies that accept new customers even in their 70s or 80s.

Specific benefits: Coverage tailored to common health issues among seniors, such as critical illness cover.

Lower premiums: Some senior citizen policies might have more affordable premiums compared to standard policies.

Evaluate these policies to see if they provide a better balance between cost and coverage.

Explore Family Floater Policies

Given your wife’s age, you might explore family floater policies. These policies cover the entire family under a single sum insured. Advantages include:

Combined coverage: One policy can cover both you and your wife.

Cost-effective: Often more affordable than individual policies for each member.

Simplicity: Managing one policy is easier than handling multiple policies.

Family floater policies can simplify your insurance management while potentially reducing costs.

Consider Deductibles

Policies with higher deductibles usually have lower premiums. A deductible is the amount you pay out-of-pocket before the insurance coverage kicks in. Consider:

Your financial ability: Ensure you can comfortably pay the deductible amount in case of a claim.

Premium savings: Evaluate how much you save on premiums with higher deductibles.

A higher deductible can be a strategic choice to lower your premium while still having substantial coverage for major medical expenses.

Review Co-Payment Options

Some policies offer co-payment options where you agree to pay a portion of the medical expenses. This arrangement can lower your premium. When considering co-payment:

Co-payment percentage: Understand how much you are expected to pay (e.g., 10%, 20%).

Impact on costs: Evaluate the overall impact on your medical expenses.

Co-payment can be a good way to balance premium costs and coverage, especially if you do not expect frequent high medical expenses.

Check for Wellness Programs and Discounts

Many insurers offer wellness programs that include preventive health check-ups, fitness memberships, and other health-related benefits. These programs often come with premium discounts for active participation. Look for:

Wellness benefits: Programs that encourage and reward healthy living.

Premium discounts: Savings on your premium for participating in wellness activities.

Taking advantage of wellness programs can help reduce your premium costs while promoting a healthier lifestyle.

Consult a Certified Financial Planner

Making an informed decision about switching your health insurance requires a thorough understanding of your financial situation and healthcare needs. A Certified Financial Planner (CFP) can:

Provide personalized advice: Tailored recommendations based on your specific needs and financial goals.

Help with comparisons: Assist in comparing different policies and insurers.

Ensure continuity benefits: Guide you through the process of maintaining continuity benefits during portability.

A CFP can offer valuable insights and help you navigate the complexities of choosing the right health insurance policy.

Finally

Switching your medical insurance policy at this stage of life requires careful consideration. By evaluating your current coverage, exploring portability, and considering policies tailored for seniors, you can find a solution that balances cost and coverage. Consulting a Certified Financial Planner can further enhance your decision-making process, ensuring that you and your wife have adequate and affordable health coverage.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Ramalingam

Ramalingam Kalirajan  |6991 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 20, 2024

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Im 62 year old and retired person. I am looking for health insurance policy for me and my wife who is 52 year old and housewife. I am suffering from high BP, Cervical and Lumber spondylitis, knee osteoarthritis, IBS and taking medicines for last 10-12 years. My wife has hypothyroidism, spondylitis and diabetes Please suggest better health insurance policy. Also suggest whether individual or family policy will be better Regards
Ans: I understand you're looking for a good health insurance plan for you and your wife. That's a smart decision, especially considering your health conditions. Let's break it down to help you choose the best option:

Understanding Pre-existing Conditions:

Your existing health conditions (BP, spondylitis, etc.) are called pre-existing conditions. These might affect your policy options and premiums.
Individual vs. Family Plan:

Family plan: Covers you and your wife together under one plan. It can be cheaper, but coverage limits get shared.
Individual plans: Separate plans for each of you. More flexibility, but might cost slightly more overall.
Considering Your Needs:

Pre-existing condition coverage: Look for plans that cover pre-existing conditions after a waiting period (if any).
Hospitalization coverage: Choose a plan with sufficient coverage for hospitalization expenses.
Medicines: Check if the plan covers medicines you take regularly.
Finding the Right Plan:

Talk to a CFP professional: A Certified Financial Planner can assess your needs and recommend suitable plans from different insurers.
Compare plans online: Many insurance companies offer online plan comparisons. Look for plans that cover pre-existing conditions and have good network hospitals in your area.
Here's a quick tip: Since your wife is younger and has a different health profile, individual plans might be better. This allows you to get customized coverage based on your specific needs.

Remember: Don't hesitate to ask questions! Choosing the right health insurance is important, and a CFP professional can guide you through the process.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |6991 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 06, 2024

Asked by Anonymous - May 30, 2024Hindi
Money
Hi Sanjib, I took health insurance for my parents (father 64 and mother 61 and its renewed continuously for 6 years but now the insurance provider has increased the premium by 40%. My father has diabetes for the past 6 years and mother has BP for 10 years. I checked in the market, other insurance providers premiums are significantly lower than my current provider. Is it good to port my current plan to another service provider or stay with the current provider? please advise
Ans: Sanjib, I understand your concern about the significant increase in the health insurance premium for your parents. A 40% hike is substantial, especially when managing finances for retired or aging parents. Your father, aged 64, has diabetes, and your mother, aged 61, has been managing high blood pressure for a decade. Health insurance is crucial for them, and choosing the right provider is essential.

Evaluating Your Current Health Insurance

Long-term Relationship

You have maintained the current health insurance for six years, which is commendable. This continuity provides benefits like reduced waiting periods for pre-existing conditions.

Health Conditions

Considering your parents' medical history, including diabetes and hypertension, it's crucial to have a comprehensive policy that covers these conditions without excessive restrictions or exclusions.

Increased Premium

The 40% increase in premium can strain your budget. Evaluating the reasons behind this hike is necessary. Insurers often raise premiums due to increased claims or changes in their underwriting policy.

Exploring the Option to Port Insurance

Portability Rules

Health insurance portability allows you to switch insurers without losing benefits like waiting periods for pre-existing conditions. This is regulated by the Insurance Regulatory and Development Authority of India (IRDAI).

Comparing New Providers

While other insurers offer lower premiums, it's essential to compare the coverage, benefits, and exclusions. A lower premium might come with reduced benefits or higher co-payments.

Pre-existing Conditions

Ensure the new provider covers diabetes and hypertension without new waiting periods. Confirm this before making any switch.

Benefits of Staying with the Current Provider

Accumulated Benefits

Staying with the current insurer means continuing to benefit from the accumulated waiting period, which might be fully exhausted for some conditions by now.

Policy Continuity

Continuity ensures your parents do not face new waiting periods or exclusions, which can be a risk when switching insurers.

Trusted Provider

If you are satisfied with the current insurer’s claim settlement process and customer service, it might be worth staying despite the higher premium.

Benefits of Porting to a New Provider

Cost Savings

Lower premiums with a new provider can offer immediate financial relief. This is particularly important if the premium hike strains your budget.

Potential Better Benefits

Some new policies might offer better or more comprehensive coverage, even at a lower premium. Evaluate the policy details carefully.

Healthy Competition

Porting can help you take advantage of competitive offers in the market. New insurers might offer attractive features to gain new customers.

Important Factors to Consider

Coverage and Benefits

Compare the coverage limits, room rent caps, and critical illness coverage of the current and new policies. Ensure the new policy matches or exceeds your current coverage.

Exclusions and Waiting Periods

Check the exclusions and waiting periods for pre-existing conditions with the new insurer. Ensure there are no hidden clauses that can affect future claims.

Network Hospitals

Ensure the new insurer has a robust network of hospitals in your area. Cashless treatment at preferred hospitals is a significant advantage.

Claim Settlement Ratio

Evaluate the claim settlement ratio of the new insurer. A higher ratio indicates better reliability and a smoother claims process.

Steps to Port Health Insurance

Research and Compare

Use online comparison tools to evaluate different health insurance policies. Look for reviews and ratings from existing policyholders.

Apply for Portability

Initiate the portability process at least 45 days before your current policy renewal date. This gives enough time to complete the process without a coverage lapse.

Submit Documents

Provide the necessary documents, including the previous policy details, claim history, and medical records. Complete all required forms accurately.

Wait for Approval

The new insurer will review your application and may request a medical check-up. Approval can take a few weeks, so plan accordingly.

Renew and Pay Premium

Once approved, pay the premium for the new policy. Ensure there is no coverage gap during the transition period.

Case Study: Porting vs. Staying

Let's consider a hypothetical example to illustrate the decision-making process.

Case Study: Staying with the Current Provider

Mr. Kumar, aged 65, with diabetes, and Mrs. Kumar, aged 62, with hypertension, have been with their current insurer for eight years. Their annual premium increased by 35%. They decided to stay because:

The current insurer covers their pre-existing conditions with no waiting period.
Claim settlements have been smooth, with timely reimbursements.
They value the peace of mind and continuity of coverage.
Case Study: Porting to a New Provider

Mr. Reddy, aged 63, with heart disease, and Mrs. Reddy, aged 60, with diabetes, faced a 40% premium hike. They decided to port because:

The new insurer offered a 25% lower premium with similar coverage.
The new policy had a lower co-payment for chronic conditions.
The new provider had a better hospital network in their city.
Long-term Considerations

Health Deterioration

As your parents age, their health may decline, leading to more frequent claims. Ensure the insurer has a good track record with senior citizens.

Financial Planning

Consider the long-term affordability of the premium. Opt for a policy that provides sustainable coverage without becoming a financial burden.

Emergency Coverage

Ensure the policy covers emergencies and offers cashless hospitalization in reputed hospitals. This reduces out-of-pocket expenses during critical times.

Conclusion

Porting your health insurance can offer financial benefits, but it requires careful evaluation. Compare the benefits, exclusions, and waiting periods of both current and new policies. Consider the long-term implications for your parents' health coverage. Staying with a trusted provider has its advantages, especially with pre-existing conditions. However, porting can provide cost savings and better benefits if chosen wisely. Regularly reviewing your policy and staying informed about market options ensures the best coverage for your parents.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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Anu

Anu Krishna  |1287 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Nov 08, 2024

Asked by Anonymous - Nov 07, 2024Hindi
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Hi Anu Mam Im 27 yrs old ( married) and 10 yrs old daughter. Im seperated from my husband since 2 yrs due to several reasons like he is drinking and Totally addicted to it. And he is totally dependent and now today also roaming on the roads of some streets of hyd. I belongs to an orthdox family. Now the question is one backward caste man who is married age : 33 he is interested in me and proposed me to a marriage after knowing all my past and saying that he accepts my child too. And the thing is he said a lie to me at first that he is unmarried and even though i had a good impression on him about the way he behaves with me he even treat me in a very polite manner. He says he loves me even though i too had a good impression but the things are the castes and can we both settle down with a marriage can we be happy or he is only trying to convince me to get him a wife to care care of him or only for his parents, he always talks about his own sister and also the office colleagues calls them sister and get emotional about them those who left the office. And he cries a lot which i dont trust on him and the face i see him that was not an real cry that looks like an act which i dont like in him. May he is acting ? Or really loving me, ge cares alot i feel like he is over reacting
Ans: Dear Anonymous,
If you are in doubt, then it's highly likely that he is putting on an act. Go with your intuition and hey hey, you said that he is married and so are you...You do realize that you just can't go ahead and marry while you are already to other people, right?
Focus on what's happening in your life; you obviously have to do something about it...Other relationships can wait!

All the best!
Anu Krishna
Mind Coach|NLP Trainer|Author
Drop in: www.unfear.io
Reach me: Facebook: anukrish07/ AND LinkedIn: anukrishna-joyofserving/

...Read more

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Anu Krishna  |1287 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Nov 08, 2024

Asked by Anonymous - Nov 06, 2024Hindi
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Hello Ms Anu, I am a 42yr female..married since 14 yrs and have 10yr old son . I am highly qualified and financially independent. My marriage was a arranged one.. but in these 14 yrs.. I never experienced love or and attachment from my husband's side. He is a family man.. there is no other woman involved..He loves his parents and his two sisters immensely... but always treats me as a option. I feel humiliated and lonely and he has short temper when i talk about this issue... so basically I don't discuss... but that is no solution... I am suffering and unhappy. What should I do?
Ans: Dear Anonymous,
A few married men can be more focused on the women on their side of the family; it becomes easy to express love, care and attention to them as he has grown with them.
A wife happens to be someone that he is yet to understand. It requires effort to make a marriage work; your husband finds it convenient to take the easy way out and 'hang out' with his family.
So, here you take the lead and start. Start not by bringing forth your complaints as this is going to push him further to them which is going to annoy you BUT by inviting him to be with you. A lot of work, I get it...but the bottom line: that's what you want, right?
Plan dates evenings, take short vacations together, work-out together...the key is to establish a connection which never had its chance in the first place...So, give your best shot! Most times actions speak louder than words ever can...

All the best!
Anu Krishna
Mind Coach|NLP Trainer|Author
Drop in: www.unfear.io
Reach me: Facebook: anukrish07/ AND LinkedIn: anukrishna-joyofserving/

...Read more

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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