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 checkups, 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.