Health insurance is a primary need in today’s trying times. Pandemics, accidents, ill-effects of global warming, and all manners of health hazards are constantly plaguing society, leaving everyone doubtful about the future.
In such dilapidated times, you need to have proper medical coverage for everyone in the family. While adding your parents to the health insurance plans for family may seem like the go-to move, it is not as beneficial in reality. Let us understand why you shouldn’t add your parents to health insurance plans for family and how you can cover their medical expenses with alternative means.
Why is it a bad idea to add your parents to the family health insurance plans?
Age has a funny way of affecting your health no matter how healthy a lifestyle you lead. Your parents may be very active, and showing no symptoms of chronic illnesses, but that doesn’t mean that they might not succumb to them.
With age, the natural immunity weakens and your parents become vulnerable to common illnesses that may lead to more severe consequences. They require better medical coverage, and adding them to Health insurance plans for family can become counterproductive, and here’s why:
1. It affects your premium rate - Health insurance premiums are determined based on the medical history of each family member. If your parents’ medical history indicates that they have underlying health issues, the premium for your family health insurance plans will become much higher. It would be much cheaper to purchase individual policies for the members of your family than including your parents in the family floater plan.
2. Your parents require more nuanced medical care - As their medical costs increase with age, your parents need to have adequate coverage that takes care of health issues beyond the standard problems. They will succumb to pains in their joints, loosening muscle capacities, hearing impairment, vision impairment, gum problems, etc. They may need heightened dental and optical care, and they will certainly need frequent checkups to keep up with excellent health.
3. You can’t reap the benefits of No Claim bonuses on your family health insurance plans - One way or another, your parents will require medical care during the tenure of your health insurance policy. You cannot deprive them of treatments when you need to renew your policy and claim NCB when they have a medical emergency.
These situations cause frustration and your parents may end up feeling unnecessarily guilty for claiming health insurance. Instead, having them on separate plans will ensure that they get the required treatment while you reap the benefits of No-claim bonuses on your family health insurance plans.
4. Your family health insurance may become redundant sooner - There are maximum age limits which will be met much earlier if your parents are on the same health insurance plan as the rest of the family. You will inadvertently end up having to purchase different health insurance plans after a point to ascertain that every family member receives adequate healthcare.
It can become stressful to plan your finances as the rates of premiums will suddenly change. Instead, opt for individual health insurance for family members with fewer health issues and individual plans for your parents.
5. Other members of your family may not have the option for coverage - Parents are more likely to succumb to health issues. Ever since the COVID-19 pandemic, the immune systems of all individuals have drastically reduced. When they claim health insurance for their medical emergencies, the rest of the family may not have sufficient funds available from the sum insured to cover their medical expenses.
How to cover your parents’ health insurance needs apart from family plans?
Just because family health insurance does not benefit medical coverage for your parents does not mean that they have to live without one. You simply need a different financial plan to cover your parents’ health insurance needs.
A viable alternative is to purchase health insurance plans for family at a lower premium rate that covers the younger members. You can then opt for individual health insurance plans for each of your parents.
The benefits are as follows:
- Your parents have abundant coverage for their medical requirements. They can seek healthcare anytime they face a medical issue without worrying about burdening their financial plans.
- You can opt for health insurance riders that are targeted to provide relief for senior members of the family.
- The rest of your family can also enjoy the benefits of your health insurance plans without running out of the funds coming from the sum insured.
- Individual health insurance plans for your parents can take care of the costs of hospitalisation, diagnosis, and treatments, as well as pre and post hospitalisation care. Their medicines and special vaccinations or homecare will be covered and you can still claim NCB on your family health insurance policy.
In their golden years, or even before they retire, your parents deserve the best healthcare. They spent their lives taking care of their children, and you can repay their generosity and love with individual policies that cater to their specific needs.
Conclusion
If you want to enjoy the benefits of family health insurance plans, don’t lump your parents in the mix. You can provide them with adequate coverage to take care of their special circumstances and take care of yourself as well as the younger members of your family. All you need is a little financial planning.
FAQ
1. Will premiums be higher if I opt for individual health insurance plans for my parents?
Actually no. With a little financial planning, you may be able to reduce the load of premiums for your health insurance plans. If the family floater plans include family members with fewer chronic illnesses and health risks, the premium will also be lower. The individual plans for your parents will subsequently be balancing the difference.
However, adding your parents to a family health insurance policy may result in a much higher rate of premium than you find comfortable. Additionally, the premiums are also tax deductible up to INR 1.5 lacs under Section 80D of the Indian Income Tax Act.
2. Are there specific health insurance plans for parents?
Yes, there are health insurance plans designed to cater to the needs of the elderly. The health insurance plans for senior citizens will also provide adequate coverage for diagnostics and treatments as well as pre and post-hospitalisation care.
3. Should I add riders to both family health insurance plans and individual plans for my parents?
You can add No Claim bonus riders to your health insurance plans for family. That way, you get a substantial break on premiums in the next tenure or reap other advantages if you do not make any claims.
For your parents’ health insurance plans, you can add riders for chronic illnesses as well as added coverage. You can also choose certain riders that are specifically applicable to your parents’ medical history. In the long run, you end up paying less in medical bills even if the premiums seem slightly higher.
Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.
Published - September 16, 2024 06:22 pm IST
