Buying Health Insurance for your parents? Here’s what you need to know

Health Insurance

Buying a health insurance policy is necessary as it can help them get the best possible treatment available during medical emergencies. Choosing the right plan involves several factors, including understanding coverage options, exploring affordability, examining the network of hospitals, and managing pre-existing conditions. Let's walk you through the essential things you need to know before purchasing a health insurance plan for your parents.

Introduction

As our parents age, we can notice their health issues rising. With their immunity weakening, they become more vulnerable to the ailments that life throws their way. While it may be a natural part of the ageing process, it's also a good reminder that they must have a health insurance policy backing them. However, just any random healthcare plan won't work. Having the right insurance coverage for them is the key to keeping financial stress away during medical emergencies. Let's understand the crucial considerations and essential knowledge you should have before purchasing a health insurance plan for your ageing parents.

What is Parents' health insurance?

Parents health insurance is a customised health plan that covers the medical needs of the elderly. This healthcare plan provides protection against ailments that may arise due to ageing. These plans have a higher sum insured and comprehensive coverage, including hospitalisation, pre- and post-hospitalisation expenses, domiciliary hospitalisation, day care procedures, AYUSH treatments, etc. As there's a likelihood of filing frequent claims by the elderly, insurers charge a higher premium.

Types of health insurance for parents

1. Individual health insurance: An individual health insurance policy covers only one person. So, you need to buy separate plans for your parents. The advantage of this plan is that the sum insured is meant only for the insured individual.

2. Family health insurance: This policy covers the whole family under a single plan. You can buy a family floater and cover your parents. However, as all the family members share the sum insured, the coverage may be inadequate if your parents make multiple claims in a year due to age-related ailments.

3. Senior citizen health insurance: If your parents are above 60, this is the best option as it is specifically meant to cover the healthcare needs of senior citizens.

Factors to remember when selecting health insurance for parents

Many of us face this question - how do I pick the best healthcare plan for parents, or what are the things that I should look for when buying health insurance? So, let's find out the factors that one must consider -

• Comprehensive coverage: Look for a plan which covers expenses of hospitalisation, pre- and post-hospitalisation, domiciliary treatment, day care procedures, emergency ambulance charges, AYUSH treatment, organ donor expenses, etc. These expenses add up to a significant amount, and having coverage ensures that you do not have to shell out the cost from your pocket.
• Sufficient sum insured: As parents age, they often face medical emergencies. One way of handling the rising medical expenses is having an adequate sum insured; the insurer covers your medical expenditures up to the sum insured. Inadequate sum insured will lead to out-of-pocket expenses.
• Maximum entry age: Most insurance providers have a cap on the maximum entry age, which is usually 70-80 years. So, buy a plan before they reach this age.
• Waiting period: Go for a plan with a smaller waiting period for pre-existing and other ailments, as you cannot raise any claim until the period ends. Most plans have a waiting period of 2-4 years for pre-existing diseases.
• Network hospitals: Always pick an insurance company which has a wide network of hospitals. This will help you avail of cashless treatment, which can be a boon in case of an unplanned hospitalisation.
• Claim settlement ratio: The claim settlement ratio, CSR, indicates the ability of the insurance provider to settle claims successfully. The insurer with a high CSR will ensure you don't face any hassles at the time of settling claims.
• Coverage for critical illness: Parents are at risk of critical illnesses, such as heart problems, cancer, stroke, etc. Check for a health plan which covers critical illnesses, too.
• Trusted brand: Check the reputation of the insurance company in the market. You must check customer reviews, ratings, customer service, and the insurer's claim-paying ability to ensure you don't face any problems while claiming insurance.

Conclusion

It is wise to buy health insurance for parents while they are still young and healthy so that you can save on the premium. If you buy at a later age when they have health conditions, the insurer will charge a high premium to cover the health risks, and some insurers may deny coverage based on the medical conditions. So, the earlier you invest in a healthcare plan for your parents, the better it is.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.