Securing life insurance is a crucial step in ensuring financial stability in the long term. However, due to the rising costs of healthcare, it’s equally important to consider health insurance for parents. This insurance policy is tailored to their medical needs, offering a safety net against age-related conditions and unexpected health concerns.
Hence, choosing a well-known and reliable health insurance for parents’ medical expenses is always important. Let’s explore some important reasons you need separate health insurance for parents.
5 Reasons Why You Require Separate Health Insurance for Parents Alongside Life Cover
Reason 1: Comprehensive & Customised Benefits
Purchasing health insurance for parents typically provides essential coverage, including pre and post-hospitalisation costs, inpatient treatment, and daycare procedures. Many policies also include critical illness benefits, which help cover the high expenses associated with serious health conditions.
Additionally, some plans offer preventive health screenings to monitor your parents’ well-being, ensuring early detection of potential conditions.
Reason 2: Higher Coverage
When you buy a family health insurance plan, the coverage is shared among the individual members. However, your parents can be affected by several age-related ailments as they grow older. Lifestyle-related health issues can also cause concern.
Higher coverage is solely secured when you buy separate medical insurance for parents to access the benefits when they are in extreme need.
Reason 3: Optimising the Benefits of No Claim Bonus (NCB)
In a family health insurance policy, the No Claim Bonus (NCB) is typically shared among all members. A claim made by any member in the previous year can impact the NCB, potentially affecting your parents’ coverage cost.
As parents age, they may experience more frequent health issues, reducing their ability to take advantage of the NCB and potentially increasing their insurance premiums. Therefore, parents need to have separate medical insurance.
Reason 4: Additional Tax Benefits
Term insurance premiums are eligible for tax deductions under Section 80C, up to ₹1,50,000. For health insurance, under Section 80D, you can claim deductions of up to ₹25,000 for premiums paid for yourself, your spouse, children, and parents. If your parents are senior citizens, this limit increases to ₹50,000.
By purchasing a separate health insurance policy for your parents, you can claim an additional deduction of up to ₹25,000 (₹50,000 if they are senior citizens).
Reason 5: Wellness Benefit
Parents’ health insurance also offers amazing benefits, mainly including guidance on diet, nutrition, lifestyle, routine, and overall health. This goes beyond covering medical expenses by helping improve your parents’ overall well-being and reducing the risk of future health issues.
Essential Considerations When Buying Health Insurance for Parents
Here are several essential factors to remember when choosing the best health insurance for parents.
• Coverage Requirements
You should select a plan that offers comprehensive coverage, especially for a variety of illnesses, mainly pre-existing conditions. Many insurance providers usually cover these conditions after a waiting period.
Therefore, thoroughly reviewing all the details is essential to fully understanding the policy’s terms and conditions.
• Age of Parents
You might not be aware that many insurance providers have minimum age requirements for offering parents health insurance. The entry age criteria may vary from one insurance company to another.
Therefore, it is recommended that numerous companies and their policies be compared. You must also consider the age of the individual seeking the policy, as it significantly impacts the premium rate.
• Network Hospitals
It is the smartest way to buy parents’ health insurance from a company with a great tie-up and an extensive network of hospitals across several cities. However, ensuring that they have medical coverage in the nearest hospitals for senior citizens is essential, as you never know when and where an emergency may happen.
• Sum Insured
The sum insured is also essential because it’s the maximum amount the insurance company will cover for your parents’ medical expenses. Hence, you should buy term insurance online with a higher insurance limit.
• Sub Limits
You should be careful while reading the sub-limits clause. Different medical insurance for parents may have a set amount of coverage for specific illnesses, and the coverage ceases beyond this amount.
• Co-Payment
Many mediclaim for parents generally include co-payment options. The policyholder must pay a fixed percentage of the claim amount out of pocket before the term insurance covers the rest.
The insurer also covers the remaining amount as per the insurance policy terms. So, you must try to get health insurance for your parents with low or no co-payment requirements.
Securing the well-being of your parents with separate health insurance is a thoughtful and prudent financial decision. It offers excellent coverage and numerous other exciting benefits in an emergency.
