Getting The Best Out of Insurance

In the second of our series on investments for seniors, Chamila Nagendran, Managing Director/CEO of Infinity Trust Wealth Advisors (PVT) Ltd. talks about the need to invest in an insurance policy. The insurance options available to senior citizens reduces with advancing age, it therefore makes sense to acquire cover as early as possible.

What are the Insurance policies available for seniors? For example after 50 is it possible to get medical or life cover. If not at what age would you consider getting insurance in order to reap the best out of the available policies?

Most of insurance companies prefer clients who are less than 60 years since there is a lesser risk of illness compared to seniors. However, many insurance companies do provide an insurance cover for seniors with a higher cost and after a health check up.

We need health insurance because we cannot predict what our medical bills will be. Given the high cost of healthcare, having a health cover protects us financially in the event of an unexpected serious illness or injury.

What should a senior look for in a medical cover?

  • Maximum age limit they could continue a health cover
  • Premium of the health cover compared to the benefits and limitations of the health cover
  • Claim procedures (is it a reimbursement or will they settle the full bill directly to the hospital)
  • Exclusions (such as will it cover dental surgeries)

Can a person integrate different policies together? If yes, then how is it beneficial to get more than one policy?

Yes one can integrate different policies and create a unique cover for oneself. Ever-so-often people integrate a life cover along with health cover. Most of the life covers are include an investment strategy to provide a lump sum amount after a long period of insurance.

Till what age do the medical policies provide cover? Are policies something you renew every year or are they valid for a couple of years? Also can you get lifetime cover?

Normally all medical insurance providers initially grant cover for a period of 12 months. Thereafter, we can renew the policy annually up-to the required number of years.

Does the premium increase with age?     

There are a number of factors that influence the annual increase in premiums. The main reasons though, are medical inflation and the increasing age of the insured person which increases the chance of illnesses or injuries.

How do deductibles normally work?

By having a deductible there will be a reduction in the premium payable by the member. A deductible will be applicable on an annual basis and depends on the claims made by the member.

Many people don’t have medical insurance. What are the best policies available to seniors in Sri Lanka internationally and locally? Is it a good idea to get international cover as opposed to getting only local cover?

When one gets international health cover, usually the member can get medical treatment locally as well as in hospitals located overseas, and the limit of cover is very vast and substantial. Local cover is applicable only for treatment in local hospitals and limits of cover are not very much in comparison. This is because there is a huge difference in the price of medical care in Sri Lanka and abroad.

If you are unable to get a cover due to medical reasons are there any other options available for seniors?

If an insurance provider declines a client’s application for cover there is unfortunately no other option available for a senior citizen to obtain medical cover.

At the time of cashing in your life policy, what are the options for re-investment?

Some prefer to reinvest their money into another insurance cover; however this could depend on person to person.

How does travel insurance work for young seniors and older seniors (75 and above)?

Travel cover can be obtained form the age of 18-70years.  Following options are available to prospective client.

Annual cover – The member can make any number of trips but in each trip minimum stay of 30 or 45 days should be adhere to.

Single trip cover – cover can be obtained only for a stay overseas for a particular number of days required by the member.

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