Insurance

How To Ensure That Your Parents Are Insured Right

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Due to the increasing inflation in medical expenses, it has become necessary for individuals to purchase health insurance at an early age. If it is to do with their family, purchasing the right family health insurance becomes more urgent. If you are a salaried individual, you usually have great relief knowing that your health insurance under the employer’s group scheme would cover your family if any unexpected situation occurs. It has been estimated that healthcare inflation has been skyrocketing at 12-18% per year; thereby, the employer’s group scheme’s family healthcare coverage may not be sufficient. Moreover, some of the employers are withdrawing parental coverage. So, there is a growing realization that buying individual family health insurance policies for the entire family is necessary today.

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Since it is clear now that buying individual health insurance for parents is necessary, you are required to do a bit of research work to ensure that your parents are insured right with the best product.

Senior Citizen Health Insurance

There are many senior citizen health insurance policies offered by different insurance players in India. If your parents are in the senior citizens’ category, purchasing such plans would be fruitful indeed. A senior citizen health insurance plan’s primary benefit is that it comes with the shortest possible waiting period of 1-2 years for all pre-existing diseases and illnesses, which is less than other regular health insurance policies. Some senior citizen health insurance policies available come with less than 12 months waiting period for pre-existing diseases.

The only downside of senior citizen health insurance plans is that it comes with a co-payment clause. This means that the policyholder needs to pay a certain amount of the medical bill when making a claim, and the insurer will pay off the remaining.

Coverage from Employers

If you are a salaried individual, check with your employer’s group scheme policy to ensure if there is an option to find your parent’s insurance as a part of the group scheme with additional premiums. If it is available, then it is worth considering the employer’s group scheme plan for your parents. The plus point of the employer group scheme plan is that it is much easier to secure health insurance under the corporate cover route. The insurers also agree to provide coverage under such a scheme. Moreover, the settlement of claims is much faster in group schemes.

The downside of such plans is that the coverage is on the higher side with lesser premiums initially, but the premiums tend to increase with the passing years. Moreover, the employers’ coverage and your parents will cease immediately if you switch jobs or resign. You are required to opt for the same insurer’s retail policy for coverage in such a situation.

Top-Up Policy for Parents

The full-fledged health insurance for parents under the employer’s group scheme may be preferable at times with additional premiums, but the covers offered may not fit your stipulated budget. So, in such a situation, you may opt for top-up covers by paying additional premiums to protect your parents and enhance their coverage. This option may prove to be affordable compared to independent health coverage. If your parents are getting the coverage under the employer’s group health scheme, then it is worthwhile to purchase an additional top-up cover to take care of higher claims whenever required. Few top-up policies provide maximum coverage, which is always higher than senior citizen health insurance plans.

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