Medical Insurance for Parents

A 2019 report published by the India Brand Equity Fund estimated that only 1.5-2% of the healthcare expenditure in the country is covered by health insurance providers. Only 18% of the urban population and 14.1% of the country’s rural population has adequate health insurance coverage. These are worrying numbers in such a large country like India.

An age group that is particularly ill-placed, given the statistics, is the senior citizen group. Close to 6% of our population falls in the senior citizen category, which comprises over 78 million people. At this age, minor illnesses can become life-threatening if timely medical assistance is avoided. Besides, treatment and routine medical expenses can start to pile up. If senior citizens are financially dependent on their children or other family members, their medical expenses can become a significant source of financial worry.

This reiterates the significance of buying health insurance for parents. The policy not only covers the treatment and hospitalisation expenses but can be used to avail benefits like routine checkups, diagnosis, and health evaluations. The elderly population will most definitely need constant medical assistance, whose severity can differ from person to person. Therefore, senior citizens must have a health insurance plan that covers their unique medical needs.

Percentage of Insurance Penetration in India

Sources: Firstpost, IRDAI

Why do you need a Health Insurance Cover for your Parents?

As stated earlier, having health insurance coverage for your parents ensures that they have access to top-class healthcare facilities without stressing about its cost. Besides this, the reasons why it is imperative to buy health insurance for parents are as follows.

1. Lifestyle Diseases

When you are above 60 years old, the chances of you acquiring lifestyle diseases are more. For instance, let us assume that unfortunately your parents suddenly need medical attention for a critical illness. Having a bespoke health insurance plan that covers critical health concerns and takes care of the expenses arising from such situations will ensure much-needed peace of mind. Thus, having a senior citizen health insurance plan will take care of the medical expenses due to sudden medical contingencies.

2. Inadequate Health Coverage

Most times, people cover their parents in their basic family health insurance policy. However, do you think a family health coverage will be enough to cover their and everyone else’s medical expenses? Well, think about it this way. Your parents are getting old and they will need medical assistance often. Having a standalone health insurance policy like senior citizen health insurance for your parents will ensure adequate coverage to them in times of need.

3. Significant Savings

Although senior citizen health insurance plans can be expensive due to the age of your parents, the policy has several tax benefits. The table below gives an overview of the tax benefits under health insurance for parents.

 

Tax Benefits

If your parents are below the age of 60 years.

Rs. 25,000

If your parents are above 60 years old.

Rs. 50,000

Benefits of Health Insurance Plans for Parents

Here are some features and benefits of buying medical insurance for parents:

  • Family health insurance plans generally require lower premium payments as opposed to taking out individual plans for each member. This can save a policyholder from unnecessary expenditure.
  • It is also better to purchase a plan when you and your parents are younger as premium amounts may be lower and the primary policyholder must be between the ages of 18 and 80 when first purchasing the policy.
  • It is also better to purchase a plan when you and your parents are younger as premium amounts may be lower and the primary policyholder must be between the ages of 18 and 80 when first purchasing the policy.
  • There is usually no age limit on renewal and policyholders can continue to receive medical insurance for parents, even after they become senior citizens themselves at the age of 65.
  • Additionally, if an individual or couple that already possesses health insurance for parents plans on starting a family in the near future, they would only have to top up health insurance  plan and pay a slightly higher premium to include their children under its coverage.
  • Premiums paid are tax exempt under Section 80D of the Income Tax Act of 1961 as well as the Finance Act of 2018. The deductible amount can range between Rs.50,000 and Rs. 1 lakh depending upon how many members of the family are aged 60 and above, as well as certain specific illnesses they may suffer from.
  • Policies are available within a wide range of coverage amounts from Rs. 1.5 lakhs to Rs. 50 lakhs. The policy term may also be flexible depending upon the service provider with tenures of 1,2 or 3 years.
  • Free health checkups could be availed periodically years even if no claims for parents have been
  • Expenses incurred during organ donation may also be covered subject to terms and conditions.
  • Some pre-existing illnesses are covered under health insurance for parents after an initial waiting period which may vary between 2 or 3 years after first purchasing the plan.
  • Pre- and post-hospitalisation charges would be covered for at least up to 30 and 60 days respectively.

The health insurance plans available on the Finserv MARKETS are a great option. You can benefit from features such as cashless claim settlements at over 6500+ network hospitals, bespoke health insurance plans, reinstatement benefits, maternity and newborn benefits, and so much more.

What is included in Health Insurance for Parents?

Hospitalisation and treatment expenses can burn a hole in your savings. Having a health insurance plan for your parents can help you take care of the rising medical costs. Here’s what the policy usually covers.

1. Hospitalisation Expenses:

As your parents get old, they are prone to fall sick or acquire life-threatening diseases. The cost of availing top-notch healthcare services in India can cut through your and your parent’s savings. A health insurance plan for parents will ensure that the hospitalisation expenses are covered.

2. Pre- and Post-Hospitalisation Cost:

A health insurance plan for parents also covers the medical expenses before and after hospitalisation. Usually, the policy provides 30 days of pre-hospitalisation and 60 days of post-hospitalisation coverage. However, this may vary from insurer to insurer.

3. Daycare Cover:

The policy also covers daycare treatments that do not require hospitalisation. Depending on your insurer, the number of daycare procedures may vary.

4. Pre-Existing Illnesses:

Senior citizen health insurance plans come with extensive coverage for pre-existing illnesses. However, the pre-existing ailments covered under the policy can differ. So, get in touch with the insurer for the information on the same.

5. Major Surgeries:

Most health insurance plans for parents cover a wide range of surgeries. Because of this extensive coverage, you can avail top-class treatments at any of the network hospitals across India without worrying about finances.

6. Reinstatement Benefit:

The policy allows you to reinstate the sum insured if it is exhausted. That way, you can ensure that your parents always have sufficient coverage.

What is not included in Health Insurance for Parents?

Along with the health insurance coverage, it is imperative to know the exclusions of the policy as well. Here are some standard things that are not covered in health insurance plans for parents.

  • Any pre-existing health conditions without the completion of the waiting period
  • Health issues diagnosed within 30 days of buying the health insurance plan for parents
  • Most insurers exclude non-allopathic treatments
  • Any health concerns arising due to substance abuse
  • Dental treatment
  • Injuries due to war-like situations
  • Treatment of sexually transmitted diseases such as HIV/AIDS
  • Cosmetic surgeries

Eligibility of Health Insurance Policies for Parents

The eligibility criteria for the plans and claims under various policies may be as follows:

  • The primary policyholder must ideally be between the ages of 18-65 when first soliciting coverage in order to avoid dealing with copayment clauses.
  • They must be a resident of India.
  • Usually, the maximum entry age for medical insurance for parents is generally 60-80 years of age for most plans.

These criteria are to be considered before buying health insurance for parents. Besides, the health insurance waiting period for certain pre-existing conditions play a vital role in determining the policy cost. You can use the health insurance calculator, a tool that helps calculate the cost of your health insurance plan based on your coverage.

Documents Required for Purchasing a Medical Insurance Plan for your Parents

You need to submit the following documents when buying health insurance for your parents.

1. Proof of Age:

Documents providing proof of age for all those falling under the policy’s coverage would have to be submitted with the any of the following documents meeting this requirement:

  • Birth certificate
  • 10th or 12th mark sheet
  • Passport
  • Aadhaar card
  • Voting ID
  • Driving license
  • PAN card etc.

2. Identity Proof:

You will be required to produce any of the following documents for proof of identity:

  • Aadhaar card
  • Passport
  • Voting ID
  • Driving license
  • PAN card

3. Address Proof:

Documents providing proof of permanent address would have to be submitted and any of these documents would be satisfactory:

  • Electricity bill
  • Telephone bill
  • Ration card
  • Passport
  • Aadhaar card
  • Driving license
  • Voting ID

4. Additional Documents:

  • Passport size photos
  • Certain health insurance policies might require you to undergo a few medical tests following which you would be required to submit the test reports. While this classification has not been determined yet, some policies may not approve claims in pandemic and epidemic situations as well as during waiting periods. The only situations in which claims may be applicable are those of permanent lung damage or related conditions caused by the virus which are also subject to conditions.

How to Select Health Insurance for Parents?

Choosing the right health insurance plan for your parents is essential. Here are a few things to keep in mind when buying health insurance for parents.

1. Plan Coverage:

The health insurance plan for your parents should be extensive. The policy should cover a wide range of pre-existing diseases and daycare treatments. So, ensure that you go through the policy coverage and limitations thoroughly before buying health insurance for your parents.

2. Entry Age of the Policy:

Usually, health insurance for parents has an entry age from 55 years to 80 years. Some plans have an entry age of 60 years. It is advisable to consider an insurer that allows advanced age individuals, has no cap on age limit, and provides lifelong renewability.

3. Waiting Period:

Pre-existing diseases are covered under health insurance after the completion of the waiting period. When you are buying health insurance for your parents, look for a policy with a limited to no waiting period on pre-existing illnesses.

4. Network Hospitals:

The insurer with whom you decide to buy health insurance for your parents should have a wide range of network hospitals under them. That way, in times of emergencies, your parents can conveniently seek a cashless claim settlement at the nearest network hospital.

5. Claim Process:

The insurer you choose should offer hassle-free claim settlements. Make sure that you and your parents understand the process. That way, in times of medical emergencies, someone will be able to raise a successful claim request against the policy.

Conclusion

It is imperative to compare several health insurance plans before settling on the best health insurance for your parents, as some plans may be better suited for their medical needs than others.  The health insurance policies available on the Finserv MARKETS platform could be a good choice for you and your family.  With their 94% claim settlement ratio, rapid disbursal of funds and easy online application process, you can be assured of ample and timely coverage for you and your family.

Best Health Insurance Plans Available at Finserv MARKETS

FAQs On Health Insurance For Parents

  • ✔️Do insurers consider COVID 19 a critical illness?

    While this classification has not been determined yet, some policies may not approve claims in pandemic and epidemic situations as well as during waiting periods. The only situations in which claims may be applicable are those of permanent lung damage or related conditions caused by the virus which are also subject to conditions.
  • ✔️What is meant by a pre existing disease?

    This term refers to diseases that fall under the policy’s coverage have already been diagnosed with and received treatment for. These may include diabetes, some cancers or blood pressure and have to be declared before purchasing the policy.
  • ✔️What is meant by a waiting period?

    This refers to a time period after which a policyholder can register a claim for pre-existing diseases under their plan.
  • ✔️What are the additional benefits of renewing a Health Insurance Policy through the Finserv MARKETS portal?

    If the policy is renewed with no break and no claims have been registered, the sum insured amount will increase by 10% for every renewal for a period of up to 10 years or 100% of the original amount.
  • ✔️What are some things to keep in mind when purchasing health insurance for parents?

    Some of the things to keep in mind are : 1. Coverage 2. Waiting Period 3. Cashless Claims Facility 4. Premiums 5. Claims Settlement Ratio

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