Senior-citizen and PED considerations

Senior citizen (60+) considerations: • Premium 3-5× higher than for younger adults • Co-pay typically 10-20% • Some insurers refuse new policies above 65 or 70 • Pre-existing condition disclosure crucial • Lifetime renewability essential Senior-specific policies are different from regular family floaters. Designed for older age, with explicit handling of common geriatric conditions. Key features to verify: • Lifetime renewability (renew till death, regardless of claims) • Cashless network strength in residence city • PED inclusion timeline (some claim post-waiting-period; others exclude permanently) • Specific exclusions (often pre-existing chronic conditions)

PED structure: Standard PED waiting period: 2-4 years. During this period: pre-existing conditions excluded. After waiting: included if disclosed at start. If not disclosed: exclusion permanent + risk of policy void. For seniors: • Most have multiple PEDs (BP, diabetes, etc.) • These are excluded for 2-4 years from purchase • Other illnesses (e.g., new cancer, accident) covered immediately • Smart approach: get policy at 55-58 (before retirement), waiting period passes, lifetime renewability secured Buying late (post-65) is harder: • Premium very high • PED waiting still applies • Some insurers refuse new policies • Top-up policies sometimes work but with limitations For parents: • Best to enroll early in their 50s • If not, get whatever's available now even if expensive • PED waiting passes; future protection secured • Without policy: uncapped exposure to medical bills

Three observations from the field: 1. Buying a separate senior-citizen-specific plan often gives better terms than including parents in a family floater. Different insurer, different rules. 2. Some insurers refuse new policies above certain ages (typically 65 or 70). The window to enroll parents is narrower than people realise. 3. Lifetime renewability is a non-negotiable feature. A policy that the insurer can refuse to renew after a major claim is not really insurance. For parents of CFP's clients: • Audit existing senior coverage • Top-up senior policy with super top-up if affordable • Critical illness for parents separately if budget allows • Educate adult children: senior-care planning isn't optional Family floater limitation: • Combined sum across family • If senior parent has major claim: depletes pool for younger members same year • Better to have separate senior-specific policy + younger family floater Long-term care (LTC) products: • Limited in India currently • Some life insurers offer LTC riders • Pension + LTC structure emerging • Plan for LTC funding in retirement corpus separately

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