Guide To Choosing Health Insurance Plan For Parents

Our parents mean the world to us. We all want to protect them from any health uncertainties. Though we can’t control medical emergencies, we can ensure that we provide them with the best healthcare whenever needed without the burden of expensive hospitals, treatment, or other medical services. This is why health insurance is critical, especially if our parents are aged. 

However, figuring out health insurance for parents can be confusing, especially if they already have pre-existing diseases or are senior citizens. 

This article will help make things simpler for you. Let’s evaluate :

1. Factors to check while shortlisting health insurance plans for your parents.
2. Individual plans for parents vs. including them in your family floater plan.

Key Factors To Look For In Health Insurance For Parents

• Pre-existing disease coverage: Some plans cover pre-existing conditions only after a waiting period, and sometimes, they may be excluded altogether. This can impact crucial coverage for your parents. So, look for policies with shorter waiting periods and no exclusions for pre-existing medical conditions. 
• Chronic disease or critical illness coverage: Chronic conditions like hypertension, heart disease, diabetes, etc, need recurring treatments. Ensure that your parent’s health insurance plan provides access to specialists and covers these expenses. 
• Age limit and coverage: Ensure your parent’s health insurance is renewable. Also, check whether the premium and coverage will change as they age. 
• Consider copayment and deductibles: While copayments and deductibles can lower premiums, they can result in higher out-of-pocket expenses during hospitalisation and emergencies. Strike a balance between affordability and the ability of your parents to meet these out-of-pocket expenses. 
• Telemedicine and remote consultation coverage: Check whether the insurance plan covers telemedicine consultation or medical bills after the same. Many insurers also provide apps for senior citizens to call a specialist for remote consultation. Your parents can use remote consultation services for non-emergency medical needs.
• Explore add-ons to expand coverage: A few critical add-ons to look for while buying plans for parents are- room rent waiver, OPD treatment cover, restoration add-on, etc. While these add-ons increase insurance costs, they can benefit parents and senior citizens. 

Adding Your Parents To Existing Health Cover: Pros & Cons

Adding your parents to your health insurance plan has its pros and cons. Let’s break it down:

Pros –

●      Convenience: Covering your parents under your health insurance gives you peace of mind. They might need more assistance managing premiums, renewals,  claims settlement, and reducing paperwork as they age. Having them in your plan will ensure all of these are handled.

• Umbrella cover: If you have multiple family members, especially your parents, covered together, you will most likely utilise the cover amount since risk factors would be high for parents. Additionally, rather than taking a separate cover amount, an umbrella cover will shield all of you together. 

Cons –

●      Higher premiums:  Family health insurance plans often depend on the age of the oldest member and the members’ medical conditions included in the plan. Hence, adding your parents to the same plan can increase your insurance premium amount.

●       Limitation on coverage: The medical needs of senior citizens and younger members are different. Plans may fall short or be over-covered for others if taken for members with higher age differences.

●        Frequent claims: You may have to make frequent insurance claims for your parents’ medical expenses. You might not be able to accrue a no-claim bonus with a family floater plan.

Separate Plans For Parents And Younger Family Members: Pros & Cons

Pros –

●  Tailored coverage: Choose custom health insurance plans for young members and parents. With the flexibility to select the provider and attain personalised deductibles and copayments tailored to your parent’s financial situation, you can get the right plan to meet their need as per age and health conditions.

●    No bonus blues: Having separate policies means any claims your parents make won’t impact the no-claim bonus you’ve been racking up on your family floater policy.

●    Tax benefits: Separate policies aren’t just good for health – they’re a tax-saver too! A deduction of ₹25,000 can be claimed under Section 80D of the Income Tax Act. You can still claim a tax deduction of up to ₹50,000 for a premium paid for your parents if they are senior citizens.^[1]

Cons –

●      Cash crunch: The extra cost is the not-so-great part. Separate policies mean shelling out more in premiums. It’s like paying another bill, especially if you already have a family floater plan.

●      Limited pooling of benefits: Additionally, separate policies do not allow for the pooling of benefits among family members, which means that unused benefits from one policy cannot be utilised by another family member who may need them.

●       Paperwork hassle: Handling multiple policies can be a hassle. You need a tab for renewal dates, claim processes, and paperwork. 

Key Takeaways

Ultimately, the ideal choice depends on your family’s unique needs. Consider the health requirements, budget constraints, and your preferences. Whether you go for joint or separate health insurance for your parents, the goal is to optimise healthcare coverage for everyone involved. So, weigh the options and choose the best for you and your family. Additionally, make the process of purchasing insurance and claim settlement easy and hassle-free with platforms such as PhonePe.