As healthcare costs continue to rise, ensuring your parents have adequate health insurance is more important than ever. While many corporate policies offer coverage for employees and their families, in this day and age, it is prudent to purchase a separate health insurance policy for your parents.
This can provide more comprehensive coverage and is also customisable to your parents’ specific needs. Understanding the nuances of having a dedicated policy is crucial and can help you decide on the best type of insurance to secure their health.
What is Health Insurance for parents?
Health insurance for your parents is a policy specifically designed to cover the hospitalisation of elderly individuals and senior citizens. Given the higher risk associated with age-related health issues, these policies are tailored to address the unique healthcare needs of senior citizens. They can help manage the financial burden of medical treatments, hospital stays, and sometimes, even regular check-ups, ensuring that your parents receive superior healthcare without depleting their (or your) savings.
Why Should You Have a Policy for Your Parents?
While you may think that a policy for elderly people may be expensive and rely on corporate health insurance policies that cover family members, there are several reasons to consider purchasing a separate policy for your parents.
We are not saying that corporate insurance is bad. These policies usually provide extensive coverage for families and usually have no loading charges or waiting periods for PEDs, but they have limitations.
One major drawback is that these policies are often tied to your employment. If you switch jobs or retire, you will lose coverage, leaving yourself and your parents without health insurance.
This is why it is recommended to get a separate policy for your parents (and yourself, too). There are several advantages to getting a separate policy. Here are some advantages:
Purchasing a separate health insurance policy for your parents also provides significant tax benefits under Section 80D of the Income Tax Act. Apart from the ₹ 25k deduction you get for yourself (and your spouse and dependent children), for the premium paid for your parents, an additional deduction of ₹50k is available if they are senior citizens. This helps secure your parents' health and gives you a substantial tax break.
2. Managing Age-Related Health Issues
Generally, our parents are more prone to age-related pre-existing diseases (PEDs) such as diabetes, hypertension, and heart conditions. The earlier you purchase a policy, the better, as it ensures continuous coverage and avoids the hassle of dealing with waiting periods when health issues arise. Moreover, health insurance premiums tend to increase with age, so purchasing a policy early can save money in the long run. This also helps avoid certain loading charges and co-payments imposed by insurers if you purchase a policy for people over a certain age.
3. Safeguarding Your Parents’ Retirement Corpus
Healthcare costs can quickly erode your parents’ retirement savings. By having a dedicated health insurance policy, you ensure that their retirement corpus remains intact for their intended use, such as regular expenses and occasional vacations, rather than being depleted by never-ending medical bills. This financial safety net provides peace of mind and security for both you and your parents.
What Kind of Health Insurance Policy Should You Purchase for Your Parents?
When choosing a health insurance policy for your parents, you generally have two options: a family floater policy or individual policies for each parent. Each option has its own set of benefits and limitations.
Family Floater Policy for Your Parents
A family floater policy provides a shared sum insured for both parents. This means that the entire sum insured can be utilised by any one member or split among both of them. Family floater plans are typically more affordable than individual plans, as the risk is spread across multiple members. For parents, a floater plan can be beneficial if both are in reasonably good health and unlikely to require simultaneous hospitalisation. This type of policy simplifies renewal, as you have only one policy to track and renew.
Two Individual Policies for Your Parents
Opting for individual policies for each parent ensures that both have their own sum insured, which can be especially beneficial if one or both parents have pre-existing conditions or are likely to be hospitalised frequently. Individual policies might be more expensive than a family floater, but they offer better coverage for each parent. This is particularly important for elderly parents who might face higher medical expenses. Individual policies also offer a higher total coverage than a shared sum insured under a floater plan.
When choosing the best combination of policies, consider your parents' health conditions, your financial situation, and the maximum tax benefits available.
What are the best health insurance policies for parents and senior citizens?
Numerous health insurance policies cater specifically to the needs of parents and senior citizens. Here are some of the top policies to consider:
- Aditya Birla Activ One: Aditya Birla Activ One offers comprehensive health insurance tailored to senior citizens' needs. This policy has no copayment, room rent limits, or disease-wise sub-limits, ensuring extensive coverage without unexpected costs. The policy covers pre- and post-hospitalisation expenses for 90 and 180 days, respectively. Additionally, it provides coverage for alternative treatments under AYUSH and offers annual health check-ups. The policy also includes a unique feature where your sum insured increases by 100% each year, up to a maximum of 500% of the initial sum insured. This makes it an excellent choice for those seeking extensive and flexible health insurance coverage for their elderly parents.
- Care Supreme: Care Supreme is another top health insurance policy designed for senior citizens, known for its affordability and extensive coverage. This policy offers high sum insured options and benefits like no disease-wise sub-limits, no room rent capping, and coverage for alternative treatments under AYUSH. It also includes annual health check-ups and maternity cover with add-ons. One of the standout features of Care Supreme is the Super NCB (No Claim Bonus), which increases the sum insured by 100% every year, up to 500% of the base sum insured, regardless of whether a claim is made. This policy is ideal for those looking for comprehensive health insurance that is also budget-friendly.
- Niva Bupa Health Companion: This policy is designed specifically for senior citizens. the policy offers a unique bonus structure where any unused amount from the previous year is carried forward to the next year, providing significant financial benefits. Niva Bupa’s Health Companion policy also covers pre and post-hospitalisation expenses for 60 and 180 days, respectively, ensuring that your parents can access premium healthcare services without financial stress.
Conclusion
Ensuring your parents have adequate health insurance is important for their well-being AND your peace of mind. While corporate health insurance policies provide some coverage, they usually have limitations that make additional insurance necessary.
By understanding the benefits and drawbacks, you can make an informed decision that maximises your insurance coverage and minimises your expenses.
