Reasons Why You Shouldn't Include Parents in Your Family Health Insurance Policy
Health insurance companies often allow you to cover your parents on your health insurance policy, but this can do more harm than good. Health insurance plans are not created equal, and different factors can significantly impact your out-of-pocket costs and your satisfaction with your overall health plan. However, one of the biggest mistakes you can make when choosing a health insurance plan is to include your parents in your family's coverage. According to new research, including your parents in your family health insurance policy will cost you more than if you were to purchase an individual plan.
Why You Shouldn't Include Your Parents in a Family Health Insurance Policy
Here are some of the reasons why you shouldn't include parents in a family health insurance policy:
1. The Premium Could Be Affected
The premium of a family floater health insurance plan could be affected if parents are included in the policy. The reason is that health insurance companies consider the age of the oldest member when calculating premiums of a family floater plan. So, if your parents are older, the premium could be higher. Additionally, if your parents have pre-existing medical conditions, that could also affect the premium.
2. The No-claim Bonus Could be Affected
A no-claim bonus (NCB) is a good way to save on your health insurance premium. But if you include your parents in your family health insurance policy, it could affect your NCB. Here's why: The health insurance company will consider your parents' health risks when calculating the premium, resulting in higher costs. In addition, if your parents make a claim, it could affect your NCB. So it's important to weigh the pros and cons before including your parents in your family health insurance policy. You can use an online health insurance premium calculator to get an idea of how much it would cost to include your parents in your policy.
3. Other Family Members May Not Be Able to Claim Benefits
If your parents have any pre-existing diseases, they may need more medical treatment through this policy, and because of this, other family members may not get the benefit when the coverage is needed.
4. Reaching Maximum Age Limit May Terminate the Policy
Because of the various clause of a health insurance policy, if any person in a family insurance plan reaches the maximum age limit, it terminates the policy. So, if your parents reach this age limit during the policy tenure, it will be terminated immediately.
Alternates to Not Including Parents in the Family Floater Policy
Now that you understand why you shouldn't include your parents in the family health insurance policy, you will want to know what to do next. Here's a better idea.
Instead of going for a common family insurance plan, purchase a separate health insurance policy for your parents. This will give you a lower premium with more pros. Nowadays, various insurance plans are available for people aged over 60. These policies offer guaranteed renewal and longer tenure, solving your dilemma. You can buy an individual plan or a separate insurance policy for your parents that suits them the best. With this, you will be able to address what they actually need, along with paying less premium and having more security.
However, both of your parents may not have the same health issues and require two different policies. Seeing this, you should get the health insurance policies accordingly to get them covered for the maximum amount without compromising on their medical needs and your budget. Additionally, with different policies, you can save taxes on your parent's health insurance premium, which may not be possible if you include them in the family insurance policy.
Conclusion
Here, we explained why you shouldn't include your parents in a family insurance policy. You should always have a separate insurance policy that covers their needs and health requirements. Choosing a separate policy will also give you opportunities for policy renewal while enjoying tax benefits on the premium. It also offers cashless treatment across multiple hospitals in the country as well as a daily allowance. Now that you know what is best for you, your family and your parents, go ahead and buy the right health insurance policy. And don't forget to compare the features and benefits and match your requirements.
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Yes, you can include your parents in a family floater health insurance plan.
It is not recommended to add your parents to an existing family health insurance because this can cause your premiums to go up. Additionally, if your parents have a pre-existing condition, they may not be covered under your policy. This could leave them without the coverage they need.
If you're shopping for an individual health insurance plan, the maximum entry age is usually 65. You're not eligible for medicare at this age and will have to find a private health insurance plan. While there are some online health insurance options available, they may be more expensive than traditional health insurance plans. You can use a health insurance premium calculator to compare rates and find the best option for your needs.
Parents can also get covered under corporate health insurance plans. The coverage for them may not come under the base insurance policy. You may have to apply for a separate plan while consulting with the Human Resources department of your company. You can also use an online health insurance premium calculator to get an estimate of what it would cost to add them to your plan.
No, parents cannot be on kids' insurance. There are other options for health insurance coverage for parents that are more affordable and tailored to their needs.