Q. I have recently completed my MBA from a top college and am employed in a good MNC. Now I want to buy a health insurance policy for my parents who are 55 and 61 respectively. In the last two to three years, my parents have started facing some health problems. So, I thought it would be better to take a health insurance policy that covers such problems. Kindly advise.
Y. S. GANESH
A. Congratulations on landing a good job, more so because your employer is very likely to have a good corporate hospitalisation policy in which you can enrol your parents as well.
Another option is to purchase a hospitalisation policy for them. You would do well to do this as early as possible because it becomes progressively difficult to get a new health insurance policy with age and advancing health conditions. In addition, premium rates get higher.
Coming to the health problems your parents have started facing, they will be covered only after a waiting period of 3 to 4 years. Another reason to buy a policy early! They would have to undergo some standard medical tests before the policy is issued and there could be limits on the sum insured (SI) that the insurance company is willing to give. Incidentally, when more than one person in a family is covered under a policy there is a family discount on the premium.
Do shop around for a company that gives you at least ₹3 to ₹5 lakh coverage as today’s medical treatment costs warrant it. For additional coverage, you can opt for a top-up or super top-up policy which will be more cost-efficient.
Look carefully for exclusions and pre-existing condition clauses whichever option you choose, whether from your employer or directly from an insurer. Also ensure you are clear about the co-payment and deductibles in the options and make a considered decision. If you are paying the premium for them and they are dependent, you can avail applicable additional tax deduction under section 80D of the Income-Tax Act, 1961.
