A Crucial Guide to Health Insurance for Parents in India

Health Insurance

Purchasing proper health insurance policies for parents is critical to ensuring that they receive the best medical care without incurring financial burdens. Currently, the Indian insurance business industry is swamped with health insurance plans for those looking to purchase plans for their parents. Furthermore, several of these programmes are specifically tailored for elderly parents and senior individuals over the age of 60. In this post, you will get to know what is essentially covered under health insurance and what to know before getting one.

What is covered by a parent’s health insurance policy?

Let us look at what is included under the health insurance plan for parents.

Hospitalization Expenses: Any eventuality or illness can result in high hospitalization bills. With a comprehensive health insurance plan, the insurer will take care of or ensure the financial burden of hospitalization charges up to the coverage maximum.

Daycare Procedure: The insurer also covers nursery procedures such as cataract surgery and varicose vein surgery, which do not require hospitalization for more than 24 hours. The amount of operations depends on the plan that an individual chooses.

Pre and post-hospitalization Cost: The health insurance plans cover expenses incurred before and after hospitalization. Generally, it is 60 days and 30 days, however, it may differ from insurer to insurer.

Pre-existing illnesses: They are covered by the health insurance company after the waiting time is over. However, one can select a policy with a shorter waiting period and comprehensive coverage for important conditions such as diabetes and heart disease.

The following list will walk you through the numerous aspects to consider when purchasing health insurance coverage for your parents.

  1. The reputation of the insurance companies: When it comes to health insurance for parents, you have to select an insurance company that provides fast claim settlement results. A policyholder may not be present to complete the claim process for his or her parents. Therefore, the insurer’s reputation and promptness are important considerations.
  2. Coverage of the insurance policy: Given their age, parents are more prone to health-related difficulties. Thus, an individual should choose a higher sum assured. Having appropriate coverage ensures that individuals receive the best treatment possible in the event of a medical emergency without having to worry much about finances. While you may have extensive investment plans for your parents, comprehensive health insurance has its own benefits. The coverage should include essential elements such as shorter waiting periods for pre-existing diseases, coverage for mental illnesses, coverage for age-related ailments, preventive healthcare benefits, and so on.
  3. Location of network hospitals: A network hospital under health insurance offers a cashless facility. Thus, you must be aware of the specific location of your insurer’s network hospital. An individual must browse through a list of network hospitals that deal with the insurance carrier they choose. Make sure that the reputable hospitals in your area are specified in the plan so that in the event of an emergency, it is easy to transport them to the hospital. This allows for the best hospital care at the lowest possible cost. Furthermore, cashless claims offer a straightforward and rapid claim settlement process.
  4. Cost of insurance policy: Typically, the cost of health insurance increases with age. Considering the fact that you are buying an insurance plan for your parents, look for an insurance provider that provides the plan at a cheaper cost.
  5. Exclusions: Exclusions are essential expenses that you are required to pay from your pocket and aren’t included in your plan. You are responsible for every medical bill not covered by your parent’s health insurance. Thus, it is critical to grasp the particular exclusions of the health plan. Always review the policy paper thoroughly.
  6. Additional coverage benefits: Before deciding on a plan, it is important to review the benefits and coverage provided by the policy. Some health insurance plans can be tailored with additional coverage. Health insurance add-ons include room rent waiver, critical illness insurance, outpatient department (OPD) coverage, hospital cash coverage, and personal accident coverage. When you are buying health insurance plans for your parents, make sure you check the coverage.
  7. Tax Benefits: Just like PPF, ULIP and other such investment plans offer tax benefits. Similarly, the premium paid for the health insurance coverage is eligible for tax deduction under Section 80D of the Income Tax Act. If an individual pays a premium for himself and his parents, the maximum health insurance premium is Rs. 50,000. If the parents are over the age of 60, the highest premium eligible for tax exemption is Rs. 75,000.
  1. Pre-existing Diseases Coverage: If the policyholder’s parent has a pre-existing disease, it will only be covered after the 2-4-year waiting period. However, the policy’s waiting time may differ from insurer to insurer, depending on the plan chosen. Thus, examine the time period after which pre-existing diseases will be covered by the parent’s health insurance plan.
  1. Value-added Services: In recent years, health insurance value-added services have grown in popularity. Teleconsultations, free health check-ups, health monitoring programmes, and so on can all help you keep your parents healthy.
  2. Claim Process: An insurance company’s claim process should be straightforward and easy to follow. Otherwise, you will devote more time to filing claims rather than focusing on your parents’ health. Choose an insurer that offers a simple, digital, and transparent claim process.
  3. Co-payment Clause: A co-payment clause in a health insurance policy refers to the proportion (%) of the sum that the insured will pay on his own. The health insurance company pays the remaining medical treatment expenses. If a policy contains a 20% co-payment provision, the policyholder will have to pay Rs.2 lakh out of pocket for a claim of Rs.20 lakh, with the insurer covering the remaining Rs.18 lakh. So, while acquiring the coverage, make sure to review the co-payment condition. You can also opt for a no-copay clause.
  1. Renewability: Insurers may limit the insured’s entry age. If you choose an insurance provider with low entry-age requirements, you may be unable to purchase coverage for your parents. Health insurance plans for parents typically include a lifetime renewal option.

At last,

With such a diverse choice of investment plans available in the market, selecting the best plan might be difficult. Thus, to assist our readers in selecting the best health insurance plan for parents, the aforementioned factors might be able to tell them how to select the best insurance policy. Lastly, it is best to compare different health insurance plans. To get the finest health insurance plan for parents, compare quotes from numerous plans online and select the one that provides the most coverage at a cheaper premium rate.

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