Deductible works for seniors

IT CAN MAKE HEALTH COVER AFFORDABLE BY REDUCING PREMIUM COST BY UP TO 40%

- SAIKAT NEOGI

AS PREMIUMS FOR senior citizen health insurance premiums continue to rise, a deductible is a smart choice to manage costs. It is a fixed amount that a policyholder has to pay out-of-pocket before the insurer starts to pay and can help bring down the cost of premiums by up to 40%.

For instance, if a policyholder opts for a deductible of ₹50,000 and incurs a medical bill of ₹2 lakh, he will have to first pay ₹50,000, and the insurance company will then cover the remaining ₹1.5 lakh.

With a high-deductible plan, preventive services such as annual wellness visits or annual full-body check-ups, as well as cancer screenings (based on the services provided by the insurer) can be covered before meeting the deductible. "Seniors with chronic illnesses or frequent medical needs should choose a lower deductible to minimise personal expenses," says Amarnath Saxena, chief technical officer, Commercial, Bajaj Allianz General Insurance.