As people age, their bodies degrade and become more prone to ailments. Your parents may experience financial hardship throughout their golden years due to the steadily growing cost of healthcare and restricted or missing scope of regular income. It is crucial to get suitable health insurance coverage for them. Fortunately, several insurance providers in India offer the option to cover dependent parents in a floater plan.
What is Health Insurance for Parents?
Health insurance is a kind of medical coverage that provides financial assistance to protect your medical expenses. Health insurance for parents’ coverage is a customized plan to assist parents’ medical coverage. It offers comprehensive protection against age-related medical conditions that might cause high medical costs and result in various diseases. It comes with a more significant insured amount and offers valuable features, such as yearly health exams, cashless treatment, etc., to effectively manage medical costs.
Types of Health Insurance for Parents
Three different health insurance coverage options are available to pay for the medical expenses of your whole family, including your parents.
1. Individual health insurance
As the name implies, these health plans provide medical care to insured people. Only those who have purchased insurance under this coverage are covered. You may include your parents and other family members in this coverage. It is more beneficial since the covered person may profit from a fixed amount guaranteed rather than a variable value.
2. Family Floater Health Insurance
These policies provide complete family health insurance coverage. All family members, including your parents, may be insured under one family floater policy. It is probably not a wise option. This is because the insured individual making future claims must do with the reduced amount promised under the plan if you submit several claims under this cover in a year. Parents in India have access to several supplemental health insurance plans that cover a variety of ailments that primarily affect persons over the age of 50.
3. Senior Citizen Health Insurance Plan
Regardless of the primary illness, this insurance plan accommodates all older adults’ medical needs. This plan is advantageous since it satisfies the needs of everyone falling into this group by making a sizable claim distribution. The inclusion of advantages like home hospitalization and AYUSH coverage, among others, makes this insurance policy ideal for anyone over 60 who must bear the expense of their medical care.
Which Health Insurance Plan for Parents is Best?
Get to know below which type of health insurance for parents will be best for your parents:
- For Parents of Age Above 60 Years
If you need healthcare insurance for parents older than 60, you might consider buying a senior citizen insurance policy. This plan is considered the best option for seniors since most traditional health insurance policies do not cover those over 60 or often demand pre-screening medical exams. The advantages of medical insurance for parents include high insurance coverage, pre-, and post-hospitalization costs, pre-existing illness coverage, lifetime renewable facility, and cashless hospitalization, which are ideal for paying for the medical expenses of older adults.
The co-payment requirement for these parent medical insurance plans ranges from 20% to 30%, depending on the plan and insurer, even though pre-medical exams are waived. The portion of a claim that must be covered by the insured is a co-payment. In the ideal scenario, individuals choose a co-payment-free plan, but if none are available, they may choose a smaller co-payment.
2. For Parents of Age Below 60 Years
You may choose a typical family floater plan in this situation. These policies provide the coverage of family members under the same insurance. Under a single parent’s medical insurance policy, you may cover both of your parents. It is possible to get a plan that protects you, your spouse, your children, and your parents under one policy, but we typically don’t advise it for the following reasons:
- Plan availability: Very few businesses sell policies that cover more than two people per policy. Policy options are limited in such a situation.
- Needs may differ: Your requirements will vary significantly from those of your parents, given your enormous age difference. For this reason, you should choose a more considerable amount promised to your parents while choosing a smaller sum for yourself and your family.
Choosing a different family floater plan for you, your spouse, and your children, as well as separate medical insurance for your parents, is a wise move.
Advantages of Buying Health Insurance for Parents
Some advantages of getting your parent’s health insurance include the following:
- Lifetime Medical Protection
Health insurance plans for parents often include a renewal option for a lifetime. This coverage implies that you may guarantee your parents continued medical protection up to their passing by purchasing such plans.
- High Insured Amount
Health insurance plans for parents often have a large amount insured because of older individuals’ higher healthcare demands. Thus, it enables you to get enough coverage for your parents and guarantees that financial constraints never prevent you from receiving the finest care.
- Critical Illness Insurance
Elderly adults have substantially greater rates of severe diseases, including cancer, heart attacks, strokes, etc. Parents’ health insurance protects them financially from the cost of life-threatening conditions and pre-existing illnesses.
- Tax advantages on Parent’s Health Insurance Policy
The health insurance premium for a multi-year plan paid in one lump sum is qualified for a tax credit under Section 80D as per income tax regulations. This tax saving is subject to a cap of either Rs. 25,000 or Rs. 50,000, depending on the situation. In addition, you may deduct up to Rs. 1 lac in taxes for costs associated with certain conditions that affect senior persons. Tax advantages are also available for expenses related to routine health examinations.
Your parents will get the highest quality medical care due to adequate health insurance. It offers protection from unforeseen medical expenses. It will be easier to cover any potential medical costs if you have the top health insurance plans for parents. You have various health insurance plans to pick from, offered by multiple insurance providers.
At the time of renewal, you may choose a different insurer to improve your parent’s health insurance coverage. The advantages of your coverage might be increased even more by purchasing a critical illness rider. Several businesses give the option to pay a small additional fee and increase the claim amount in the insurance policy.
Disclaimer: The above information is for illustrative purposes only. For more details, please refer to policy wordings and prospectus before concluding the sales