Medical insurance for people aged 60 and above; what you should know

A senior citizen insurance policy is a cover that is packaged for people aged above 60 years. Health conditions inevitably crop up as parents age. Some can be long-term and costly to treat or manage directly from your pocket. The heavy medical expenses that come with chronic health conditions at old age can leave the entire family bankrupt. This is avoidable if you enlist your elderly parents for health cover.

The do’s

Coverage: Pick a health insurance policy that offers the broadest coverage of illnesses, including critical diseases. According to Rhina Namsia, a financial advisor and the founder of The Acemt Consulting, old age can attract a myriad of diseases that had not been previously anticipated despite regular checkups. “Be prepared for medical surprises by picking a cover with the widest range of coverage for your parents,” she says.

Exclusions: In the policy details, make sure you check for exclusions of any pre-existing diseases. Policies for elderly people are more likely to have multiple exclusions in comparison to policies for younger people. They are also bound to be costlier due to the likelihood of frequent claims.

Age restrictions: Age is an important factor when buying or renewing insurance policies. While some insurers will restrict the purchase of senior citizen policy once the insured has crossed the age of 80, some policies will not have a maximum age. There are also policies that will have their minimum age at below age 60.

Waiting periods: Health insurance policies usually have a waiting period for certain pre-existing diseases. With waiting periods, the policyholder must wait for the stipulated time before they become eligible to make a claim for pre-existing medical conditions. “As the chances of hospitalisation increase among senior citizens, it becomes crucial to compare various policies so that you’re able to pick the one with the shortest waiting period,” says Namsia. “You should also check for the sub-limit clause and pick a policy that offers the maximum in-patient hospitalisation coverage.”

The don’ts

Hospital network: Senior citizen health insurance policy should have a broad network of hospital coverage, especially within an area where your parents can access without a lot of traveling difficulties. Easier access will come in handy in the event of an emergency.

It is also important that the hospital network includes specialised hospitals where special care can be accessed in the event of an emergency.

Signing: Don’t just sign away, review the policy, and ask questions. “For a policy to be issued, you will need to sign all the pages of the application and any subsequent forms,” says Namsia. “Make sure you fully comprehend what you’re signing. Don’t be afraid to ask questions if you don’t understand something. Don’t sign simply because you like the insurer’s demeanor.”

The funeral cover

Due to cultural attitudes, not many people are willing to take a funeral or last expenses cover. Everyone fears death, and in the African setting, taking a funeral cover on behalf of your elderly parents might draw the wrong interpretations. But funerals are among the costliest expenditures that families undertake. A survey by the Association of Kenya Insurers in 2018 revealed that only 3 percent of Kenyans have taken funeral insurance. The same survey revealed that funeral expenses in Kenya cost families between Sh. 50,000 and Sh. 2.5 million. Taking a funeral policy is not a call up for death. Arrange for one that is easy to pay for and has a wide range of coverage. All leading insurers in Kenya provide a form of funeral plan that caters to expenses such as mortuary fees, cost of a casket, hearse, flowers, funeral programs, and the refreshments taken during burials.