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What are the financial benefits that senior citizens can avail?

  • Highlights

  • Enjoy a host of benefits provided by the government

  • Choose the right health insurance for senior citizens

  • Make use of tax benefits for senior citizens

  • Enjoy 0.25% higher interest on investments

As a senior citizen, you may have already retired or may be close to retiring. When it comes to living your golden years, it is essential that you secure your finances. This will allow you to enjoy your life post retirement to the fullest, without any worry. To help you achieve this goal, the government and financial institutions offer senior citizens special financial benefits. Take a look at what these benefits are.

Insurance benefits

While most people believe that it is difficult to get insurance as you get older, you can benefit by opting for health insurance for senior citizens or mediclaim for senior citizens. For instance, many reputed insurance providers offer health insurance for senior citizens between the ages of 60 and 80 years. With such a scheme you can enjoy a maximum coverage of Rs.1 lakh if you are a healthy senior citizen, and up to Rs.2 lakh if you have a critical illness. You can also claim Rs.2 lakh coverage without getting hospitalised.

These schemes usually also include the cost of blood transfusion, oxygen, day care, diagnosis, medicines and more, and can be renewed until you are 90 years old. So, in order to avail such diverse Health Insurance for Senior Citizens check your pre-approved offer from reputed insurance aggregators such as Bajaj Finserv. Select your customised insurance offer and apply online to secure your health by paying nominal premiums.

Income tax benefits

If you are aged between 60 and 80 years then you belong to the senior citizen group. If you are 81 years of age or older, you belong to the super senior citizen category. Based on the category you fall under, you can claim tax benefits under the various section of the Income Tax Act. To start with, unlike normal citizens who are exempted from tax payments provided their yearly income is within Rs.2.5 lakh, the limit for senior citizens is Rs.3 lakh and for super senior citizens is Rs.5 lakh. You can also claim a deduction of up to Rs.1,00,000 for the treatment of certain medical diseases like AIDS, neurological diseases, haematological disorders and malignant cancer, under Section 80DDB of the Income Tax Act. Additionally, you can enjoy tax-free interest via bank fixed deposits, post office deposits, savings account and recurring deposit. The maximum limit for this is Rs.50,000 per year as per Section 80TTB.

Investment benefits

As per RBI guidelines, financial institutions have to offer at least 0.25% higher interest on various investment options for senior citizens. So, with an interest of around 8.3%, you can benefit from secure investment options such as Senior Citizen Savings Scheme, fixed deposits, pension plans, and much more. Moreover, you can also tailor your investments as per your financial needs and earn regular interest income, or opt for returns on maturity depending on what is more convenient.

So, make the most of these benefits as a senior citizen and be sure to maximise your financial gains.

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