Best Health Insurance Options for Retired NRIs in India

You've worked hard in Dubai for three decades. Saved well. Built a home in Bangalore. Now retirement is around the corner, and you're thinking about moving back to India.

But here's a question that's keeping you up: What happens when you need medical care in India? Your company insurance ends the day you resign. 

The international plan you're paying for won't cover you once you're a resident. And Indian hospital bills? They've tripled since you left.

At Belong, we have worked with hundreds of NRIs planning their move back to India. The biggest concern we hear isn't about property or investments. 

It's always health insurance. Because let's be honest - at 60 or 65, you can't afford to get this wrong.

In our WhatsApp community of over 12,000 NRIs, this question comes up almost daily: "Which health insurance should I buy for my parents?" or "I'm 62 and returning to India - will anyone even insure me?"

This guide answers all of that. We'll walk through the best health insurance plans for retired NRIs, how pre-existing conditions work, what Section 80D tax benefits you can claim, and the mistakes you must avoid. By the end, you'll know exactly which plan fits your situation.

Why Retired NRIs Need Health Insurance in India - Even If You're "Healthy"

Here's what most people don't realize: health insurance isn't just for when you're sick. It's for when you're not.

At 60-plus, even a routine procedure can cost ₹2-3 lakh. A cardiac stent? ₹5-8 lakh. 

Hip replacement? ₹4-6 lakh. 

These costs have grown significantly as medical inflation continues to rise.

If you're planning to split time between India and the UAE (or US/UK), your international insurance likely has geographical restrictions. Health insurance coverage from your country of residence often has limited or no coverage outside the specified region. So you end up paying out of pocket in India.

Even if you have savings, draining ₹10-15 lakh for a surgery affects your retirement corpus. That's money you wanted for your grandchildren's education or your own travel plans.

👉 Tip: Buy health insurance 2-3 years before you return to India. Waiting periods for pre-existing conditions are typically 2-4 years, so by the time you settle back, you're fully covered.

Health insurance also gives you access to cashless treatment at network hospitals. This feature enables NRIs and their family members to receive cashless treatment at any of the insurer's network hospitals. You don't pay upfront. The insurer settles directly with the hospital.

Most importantly, it protects your dignity. You don't want to be 70 and asking your children for money every time you need medical care.

Also Read - How Much Money Does an NRI in the UAE Need to Retire Comfortably in India?

How Health Insurance for Senior Citizens Is Different from Regular Plans

Senior citizen health plans aren't just regular plans with a higher age limit. They're designed differently because the risk profile changes after 60.

Here's what makes them unique:

Higher premiums but more lenient underwriting
Senior citizen health insurance plans often have higher premiums starting at ₹3,000-₹10,000 per month, but many don't require extensive medical tests upfront. Some insurers like SBI and Star Health allow entry up to age 75 or even no age limit.

Pre-existing disease coverage
Regular plans may exclude conditions you already have. Senior plans cover them after a waiting period. Most plans cover pre-existing diseases after a shorter waiting period of 1 or 2 years.

AYUSH and alternative treatment coverage
HDFC ERGO and other senior citizen plans extend coverage to alternate treatments like Ayurveda, Unani, and Homeopathy, which many senior citizens prefer.

Co-payment clauses
Some plans ask you to pay 10-25% of the claim yourself. For example, New India Assurance has 10% co-payment for pre-existing diabetes and hypertension claims. If you can afford a slightly higher premium, opt for zero co-payment.

Restoration benefits
If your ₹5 lakh cover gets exhausted mid-year, some plans restore it fully. Plans like Care Supreme and HDFC ERGO Optima Secure offer unlimited restoration of the cover amount.

Room rent capping
Watch out for this. Some plans cap room rent at 1% or 2% of the sum insured. If you exceed that limit, the entire claim gets proportionately reduced. Always choose plans with no room rent limits.

The Ayushman Bharat Scheme for Senior Citizens Aged 70+

If you or your parents are 70 or older, the Ayushman Bharat Yojana (Ayushman Vay Vandana Card) is a game-changer.

The scheme provides free treatment benefits of up to ₹5 lakh per family per year for all senior citizens aged 70 and above, irrespective of their socioeconomic status. Yes, even if you're earning well or have private insurance.

The best part? 

Private health insurance holders and Employee State Insurance Scheme members are also eligible. You don't have to give up your private plan.

Over 47.2 lakh Ayushman Vay Vandana cards have been issued as of February 2025, and the scheme has already processed over 1.10 lakh hospital admissions worth ₹202 crore.

To enroll, you need Aadhaar-based e-KYC. The process is fully digital and can be done through empanelled hospitals or online portals.

This is essentially a free backup plan. You can use it for government and empanelled private hospitals, which means even if your private insurance has a co-payment clause or sub-limits, Ayushman Bharat can fill the gap.

Top 6 Health Insurance Plans for Retired NRIs in India (2025)

Based on coverage, claim settlement ratio, and features specific to senior citizens, here are the best plans:

1. HDFC ERGO Optima Secure

Sum Insured: ₹5 lakh to ₹1 crore
Entry Age: Up to 65 years (lifelong renewal)
Claim Settlement Ratio: 99.16% as of 2025Key Features:

  • Immediate 2X coverage and 100% loyalty bonus up to 500%
  • Covers pre-existing diseases from the first year (with conditions)
  • No room rent limit
  • Worldwide emergency coverage

👉 Tip: If you're planning to visit Dubai or the US occasionally post-retirement, the worldwide emergency cover is valuable.

2. Care Supreme

Sum Insured: ₹7 lakh to ₹1 crore
Entry Age: Up to 99 years
Claim Settlement Ratio: 92.17%

Key Features:

  • No loading charges, disease-wise sub-limits, or room rent restrictions
  • Add-on available to reduce pre-existing disease waiting period from 3 years to just 30 days
  • Unlimited restoration benefit
  • AYUSH treatment coverage

Care Supreme is one of the most affordable senior citizen plans. Care Health Insurance operates with 21,700+ healthcare providers.

3. SBI Super Health Insurance

Sum Insured: ₹3 lakh to ₹2 crore
Entry Age: No upper age limit
Claim Settlement Ratio: 98%

Key Features:

  • SBI Super Health Insurance does not come with any entry age limit and provides a health multiplier and reinsure benefit
  • Available in four variants (Elite, Premier, Platinum, Platinum Infinite)
  • Home healthcare coverage
  • Pre-hospitalization: 60 days, Post-hospitalization: 180 days

SBI's brand trust and the fact that there's no age cap make this a solid choice if you're 75+ and struggling to find coverage elsewhere. Now has over 16,625 network hospitals

5. New India Assurance Senior Citizen Mediclaim

Sum Insured: ₹1 lakh to ₹1.5 lakh
Entry Age: 60-80 years
Claim Settlement Ratio: 92.7%

Key Features:

  • Coverage for artificial life maintenance excludes genetic diseases, and mental illness
  • Pre and post-hospitalization expenses covered for up to 30 and 60 days respectively
  • Government and registered Ayurvedic/Homeopathic hospitals covered
  • Affordable premiums

This is a no-frills, reliable plan from a government-backed insurer. Good if you want simplicity over bells and whistles.

6. Aditya Birla Activ One Max

Sum Insured: ₹2 lakh to ₹6 crore
Entry Age: No upper limit for adults
Claim Settlement Ratio: 93%

Key Features:

  • Unlimited restoration of cover amount and loyalty bonus up to 500%
  • Built-in coverage for consumables such as gloves and syringes
  • AYUSH treatments included
  • Pre-existing disease waiting: 3 years

Aditya Birla is relatively new but has managed solid claim settlement ratios. The consumables cover is a nice touch - most plans exclude these small but essential items. 11000+ cashless hospitals.

7. TATA AIG Elder Care

Sum Insured: ₹3 lakh to ₹25 lakh
Entry Age: 65-85 years
Claim Settlement Ratio: 95.43% TATA AIG has one of the highest claim settlement ratios

Key Features:

  • Designed exclusively for seniors
  • Ambulance coverage
  • Sum insured up to ₹3 crore in some variants

TATA AIG Elder Care doesn't offer a lot of essential features compared to other plans but is a good fallback option for seniors struggling to get approval elsewhere.

Also Read -Term Insurance for NRI

Comparison Table: Top Senior Citizen Health Insurance Plans

Plan
Sum Insured
Entry Age
CSR
Pre-existing Waiting
Room Rent Limit
Annual Premium (₹5L cover, 65-yr-old)
₹5L - ₹1Cr
Up to 65
99.16%
1-2 years
None
₹28,000 - ₹35,000
₹7L - ₹1Cr
Up to 99
92.17%
30 days (with rider)
None
₹22,000 - ₹30,000
₹3L - ₹2 Cr
No limit
98%
2-4 years
Varies by variant
₹24,000 - ₹32,000
₹1L - ₹1.5L
60-80
92.7%
2 years
Sub-limits apply
₹15,000 - ₹22,000
₹2L - ₹6Cr
No upper limit for adults
93%
3 years
None
₹20,000 - ₹28,000
₹3L - ₹25L
65-85
95%
2-3 years
Sub-limits apply
₹26,000 - ₹36,000

Pre-Existing Conditions: What's Covered and When?

This is where most people get confused. Lets break it down simply.

What is a pre-existing condition?
Any illness or condition you had before buying the policy. Diabetes, hypertension, thyroid, asthma, arthritis - these are the most common.

Will it be covered?
Yes, but after a waiting period. Most health insurance plans cover pre-existing diseases after a waiting period, which typically ranges from 2-4 years.

How does the waiting period work?
Let's say you buy a policy in January 2026, and it has a 3-year waiting period for pre-existing conditions. You can start using the policy immediately for new illnesses (like dengue, accidents, surgeries unrelated to pre-existing issues). But if you need treatment for your diabetes, that will only be covered from January 2029 onwards.

Can you reduce the waiting period?
Yes. Some plans like Care Supreme offer add-ons that reduce the pre-existing disease waiting period from 3 years to 30 days. You pay a slightly higher premium, but it's worth it.

👉 Tip: If you're 58 and planning to retire at 60, buy your health insurance now. By the time you return to India, your waiting period is already done.

What if you don't declare a pre-existing condition?
Don't. Just don't. When you file a claim, insurers check your medical records. If they find you hid something, they'll reject the entire claim. Always provide accurate and relevant information to avoid claim rejection.

What about conditions diagnosed after buying the policy?
Fully covered from day one. If you buy a policy today and get diagnosed with cancer six months later, that's covered immediately (after any initial waiting period of 30-90 days for the policy itself).

Section 80D Tax Benefits for Retired NRIs

Even in retirement, you want to save on taxes. Health insurance premiums qualify for deductions under Section 80D of the Income Tax Act.

How much can you save?

NRIs can claim deductions up to ₹25,000 for health insurance premiums for themselves, spouse, and dependent children. If you're 60 or older, the limit goes up to ₹50,000.

An additional ₹25,000 can be claimed for parents under 60, or ₹50,000 for senior citizen parents. So the maximum you can save is ₹1 lakh per year if both you and your parents are senior citizens.

Does this apply to NRIs?
Yes. NRIs who pay tax in India can claim tax deductions on health insurance premiums paid to an insurance company in India under Section 80D.

But here's the catch: Senior citizen NRIs aren't eligible for the higher Section 80D deduction available to resident seniors. If you're a non-resident Indian, even if you're 65, you can only claim ₹25,000, not ₹50,000.

What qualifies for deduction?

  • Premiums paid for yourself, spouse, children, parents
  • Preventive health check-ups (up to ₹5,000 within the overall limit)
  • Medical expenses for senior citizen parents (if they don't have insurance)

What doesn't qualify?

  • Cash payments. Deductions are only allowed for digital payments like credit card, debit card, or net banking.
  • Premiums paid for siblings, in-laws, or grandparents.

Old tax regime vs. new tax regime
Section 80D deductions aren't available in the new tax regime. If you opt for the new regime (which has lower tax rates), you lose this benefit. Calculate which regime works better for you based on your total deductions.

Our residential status calculator can help you figure out if you're still an NRI for tax purposes or have become a resident. This matters because it affects your tax slab and deduction eligibility.

Claim Settlement Ratio: Why It Matters and How to Check It

Imagine this: You've been paying ₹30,000 a year for five years. You file a claim for ₹4 lakh. And the insurer rejects it on a technicality.

This is why the Claim Settlement Ratio (CSR) is the single most important metric when choosing an insurer.

What is CSR?
It's the ratio between the number of claims resolved and the total number of claims in a financial year. For example, if 100 claims were filed and 97 were settled, the CSR is 97%.

What's a good CSR?
A claim settlement ratio of 85% or more is considered good. But ideally, you want 90% or higher. Reliance General Insurance has the highest claim settlement ratio of 99.57% as of March 2025.

Why do some claims get rejected?

  • Non-disclosure of pre-existing conditions
  • Treatment not covered under the policy (cosmetic surgery, experimental treatments)
  • Waiting period not completed
  • Wrong or incomplete documentation

You can check CSR on the IRDAI website by downloading their annual report or on insurer websites. We also list CSR data in our NRI Fixed Deposit comparison tool filters (coming soon for health insurance comparisons).

👉 Tip: Don't just look at one year's CSR. Check the trend over 3-5 years. Consistency matters more than a single year's high ratio.

How to Buy Health Insurance for Retired NRIs from Abroad

You're in Dubai or New York, and you want to buy a policy for yourself (or your parents) in India. How do you do this without flying back?

Step 1: Gather documents
You'll need:

  • Passport copy (proof of NRI status)
  • Valid address proof in India (Aadhaar, voter ID, utility bill)
  • Recent ITR or income proof
  • PAN card

For PIOs, a copy of your passport is required.

Step 2: Choose a plan online
Most insurers now allow full online purchase. Go to their website, compare plans, enter details, and buy. Sites like Policybazaar, Renewbuy, and Ditto also aggregate multiple plans.

Step 3: Medical tests (if required)
Some insurers bear the cost of pre-policy medical checkups and arrange tests at their medical facilities. Others ask you to get tests done and submit reports.

If you're abroad, some insurers accept tele-medical assessments. ICICI Prudential offers Video Medical Exams (VMER) where experts interact with you over video and ask questions about your health.

If physical tests are required, you can:

  • Schedule them during your next India visit
  • Have a family member accompany the insured person (if it's your parent)
  • Use ICICI, HDFC, or Care's NRI-specific services

Step 4: Payment
Pay online via international credit/debit card or net banking from your NRE account. Only digital payments qualify for Section 80D deductions, so avoid cash.

Step 5: Policy issuance
You'll get the policy document via email. Keep it saved. Also download the insurer's app for easy claim filing.

Step 6: Nominee and beneficiary details
Make sure you list a trusted family member in India as a point of contact. Claim processing is faster if someone locally can coordinate with hospitals.

Cashless vs. Reimbursement Claims: Which Is Easier?

There are two ways to settle a health insurance claim: cashless and reimbursement.

Cashless Claims
Cashless hospitalisation allows you to receive treatment at a network hospital without paying upfront, as the insurer settles the bill directly.

How it works:

  1. You (or your family) inform the insurer 48 hours before planned hospitalization (or immediately in emergencies).
  2. The hospital's TPA (Third Party Administrator) desk coordinates with the insurer.
  3. The insurer approves the claim in real-time.
  4. You get treated. The hospital bills the insurer directly.
  5. You only pay for non-covered items (like outside medicines you brought, attendant food).

Reimbursement Claims
In reimbursement claims, you pay the hospital bills upfront and then submit the claim to the insurer for repayment.

How it works:

  1. You pay the full hospital bill.
  2. Collect all documents: discharge summary, bills, prescriptions, diagnostic reports.
  3. Fill out the claim form (available on insurer's website or app).
  4. Submit to the insurer.
  5. The insurer reviews and reimburses within 15-30 days.

Which should you choose?
Always go cashless if possible. It's less stressful. You don't need to arrange ₹5 lakh in the middle of a medical emergency.

But here's a pro move: keep both options open. If you're in a non-network hospital (maybe you're visiting a smaller city), you'll have to pay and claim reimbursement. Check the insurer's network hospital list before buying. HDFC ERGO has 15,000+ hospitals. Star Health, Care, and ICICI Lombard also have extensive networks.

Common Mistakes Retired NRIs Make When Buying Health Insurance

Over the years, we've seen these mistakes again and again in our WhatsApp community:

1. Buying insurance only after returning to India
By then, the waiting period clock starts. If you develop a condition in year 1 or 2, you're not covered. Buy 2-3 years in advance.

Also Read - What Happens to Your UAE Health Insurance After Moving Back?

2. Choosing the cheapest plan without reading fine print
Low premium often means high co-payment, room rent caps, and sub-limits. Check for co-payment clauses which will need you to pay a part of your expenses during a claim.

3. Not declaring pre-existing conditions
Any false information could result in rejection of your application and cause problems when filing claims. Disclose everything.

4. Buying only for parents, not for yourself
If you're 55 and healthy, you think "I'll buy later." But at 62, premiums double, and some conditions may become uninsurable. Lock in a policy now.

5. Ignoring claim settlement ratio
A plan that looks great on paper is useless if the insurer has a history of rejecting claims. Always check CSR.

6. Not understanding waiting periods
There are multiple waiting periods: initial (30 days), specific diseases (1-2 years), pre-existing conditions (2-4 years). Understand all of them.

7. Paying in cash
You lose your Section 80D tax benefit. Always pay digitally.

8. Choosing individual plans instead of family floater
If you're insuring yourself and your spouse, a family floater is often cheaper and offers better coverage. A family floater plan allows the sum insured to be shared among all insured members.

9. Not reading exclusions
Most plans exclude cosmetic surgery, dental treatment (unless due to accident), fertility treatments, and experimental therapies. Know what's not covered.

10. Forgetting to renew on time
Policies have a grace period, typically 30 days, to renew after expiry. Miss it, and you lose continuity benefits (like no-claim bonus and accrued waiting periods).

Also Read - Building an Emergency Medical Fund in India for Retirement.

What to Look for When Comparing Senior Citizen Health Insurance Plans

Here's your checklist. Print this out or save it when you're comparing plans:

Coverage Amount
Start with at least ₹5 lakh. Even a brief hospitalization can generate a bill worth lakhs of rupees. If you're in a metro, consider ₹10 lakh. If you have a history of chronic illness, go for ₹15-20 lakh.

Network Hospitals
HDFC ERGO aims to ensure senior citizens don't have to run from pillar to post during a medical emergency with an extensive 15,000+ cashless network across India. Check if good hospitals in your city are covered.

Pre-existing Disease Waiting Period
Shorter is better. Care Supreme's add-on can reduce waiting from 3 years to 30 days.

Room Rent and ICU Limits
No capping is ideal. If there's a cap, it should be at least 2% of sum insured per day. Otherwise, even if a room costs slightly more, your entire claim gets proportionately reduced.

Co-payment Percentage
Zero co-payment is best. If there is co-payment, 10% is acceptable. Anything above 20% is expensive.

Restoration Benefit
HDFC ERGO Optima Secure and Care Supreme offer 100% sum insured restoration after the first claim. This is crucial if you or your spouse need multiple hospitalizations in a year.

Pre and Post Hospitalization Coverage
SBI Super Health covers pre-hospitalization expenses for 60 days and post-hospitalization for 90 days. This includes diagnostic tests before admission and follow-ups after discharge.

Ambulance Cover
Ambulance services can be expensive during medical emergencies; the best plans cover these costs.

Daycare Procedures
Medical procedures such as dialysis and cataract surgeries that don't require 24-hour hospitalization should be covered.

AYUSH Treatment
If you or your family prefers Ayurveda, Homeopathy, or Unani treatments, HDFC ERGO and other plans extend coverage to these alternate treatments.

Annual Health Check-ups
Many plans include annual health check-ups which can catch potential health issues early.

Maternity and Newborn (if relevant)
Not applicable to most retirees, but if you're buying for your children alongside, check if it's included.

Exclusions
Common exclusions include treatments arising from war, nuclear material, rehabilitation, cosmetic surgery, and gender change surgery.

Claim Settlement Ratio
Above 90% is excellent. Between 85-90% is acceptable. Below 85%, think twice.

Customer Reviews
Real user experiences matter. Check Google reviews, Trustpilot, or ask in our community.

How Belong Can Help You Plan Your Financial Transition to India

At Belong, we don't sell health insurance directly. But we help you think through your entire financial transition.

If you're moving back to India, health insurance is just one piece. You also need to think about:

Many of our community members are in the same boat as you. Some are planning their return. Some are helping parents. Some are managing finances for aging relatives.

Join our WhatsApp community and ask your questions. We have members who've been through this journey and can share real advice.

And if you want to explore USD-denominated investments (which protect against rupee depreciation), check out our GIFT City Alternative Investment Funds or download the Belong app to see your options.

Final Thoughts: Buy Early, Choose Wisely, Stay Healthy

If you're 55 or older and reading this, here's the simplest advice I can give you:

Don't wait. Buy health insurance today - even if you're perfectly healthy. Even if you're not sure when you'll return to India. Even if it feels expensive.

Because the day you actually need it, it will feel like the best decision you ever made.

Compare plans based on claim settlement ratio, coverage, network hospitals, and pre-existing disease waiting periods. Don't just go for the cheapest option. Read the fine print.

And once you've bought a policy, pay your premiums on time, renew without gaps, keep your documents organized, and stay on top of waiting periods.

Health insurance isn't the most exciting financial product. It's not like investing in GIFT City FDs where you see your returns grow. But it's the foundation of a secure retirement.

We've helped thousands of NRIs through this transition at Belong. If you have questions, join our WhatsApp community or download the app. We're here to help.

Take care of your health. Take care of your finances. And enjoy your retirement without worry.

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