Despite the fact that the government, businesses, and individual awareness campaigns have increased the number of Indians with health insurance, the problem of underinsurance still affects a significant portion of the population in this nation. We have seen many instances where the sum insured in a government health insurance policy is very low, equivalent to less than a week's expenses in a private multispecialty hospital. Similarly, group insurance does not offer much coverage. So, can you relax if your parents have these health insurance policies? The escalating cost of healthcare in India necessitates proper insurance coverage, particularly for your parents. However, how can you know what is an appropriate cover or how to make one?
Should You Put Money into a Specific Health Insurance Plan for Seniors?
India is yet to recognise the urgent need to develop insurance programmes that are tailored specifically for individuals over 60. However, insurance companies are starting to offer health insurance coverage for senior citizens. Several significant businesses have launched policies that offer protection from hospitalisation and other medical costs for illnesses, accidents, and disorders. The majority of these plans have a term of either forever or 80–90 years. These policies have lower limitations and co-payments, making them a little more constrictive and less flexible than an early-purchased health insurance policy.
Read more - Common Restrictions in Senior Citizen Health Insurance Policies
Covering Your Parents Under the Health Insurance Offered by Your Employer
It is advised not to rely only on the medical insurance plans offered by your workplace. In most cases, when an emergency occurs, the coverage offered by the employer is insufficient to cover all medical costs. Additionally, a lot of firms are placing limitations on parent insurance, making it unreliable.
Even though many people hesitate to purchase insurance coverage for senior family members out of concern for higher rates, doing so can end up costing you more in the long run. It is therefore preferable to assess the level of medical coverage your business provides and get the insurance that would serve as an extra safety net.
Ensuring the Coverage for Critical Illness
Checking if your parents' insurance policy covers critical illness is one of the key things you must do before deciding if they are adequately insured. Protection against life-threatening disorders, including heart attacks, strokes, tumours, cancer, paralysis, etc., which can all result in lifelong incapacity and place a significant financial burden on the entire family, is provided by critical illness insurance.
The standard health insurance policy is limited in coverage and only covers about 15-20 ailments. You can invest in critical illness health insurance plan to add to the existing policy for your parents.
Coverage for Pre-existing Diseases
When purchasing insurance for your parents, it's also crucial to consider the policy's position on pre-existing conditions. Most insurance companies typically do not cover pre-existing conditions for up to 4 years, after which hospitalisation costs are covered. Hospitalization for new illnesses and accidents is further covered after the first four years.
Read more - Pre-existing Disease Cover from Day One
How Can You Create a Suitable Protection for Your Parents?
The following are some factors you should take into account while creating an adequate health insurance plan for your parents.
Senior Citizen Health Insurance Policy
To raise the sum insured for your parents' medical expenses, you may want to think about a senior citizen health insurance policy. The maximum age for these policies is often up to 80 years old, though it varies from policy to policy. Senior citizen health insurance coverage aids you in managing your parents' serious illnesses. The majority of these policies provide yearly exams and other perks that your parents will eventually need.
Pre-existing Conditions (PED)
One of the most significant things to look for when purchasing insurance is the year in which pre-existing conditions are insured. Even if you spend INR. 5 crores on insurance for your parents, if pre-existing ailments are covered after five years, the value of that high of a cover drops dramatically.
Therefore, if your parents have a pre-existing condition before you choose the plan, search for a health insurance plan with a short waiting period for PED so that they can receive coverage as soon as possible and receive the best care possible.
Super Top-up
You can use a super top-up to raise the sum insured for your parent's insurance coverage. For instance, if your parents are already covered by a corporate health plan or by a separate health insurance policy, you can choose an additional policy for them to offer coverage for an amount above your current cap. The super top-up health insurance plan, however, cannot be used until the total amount of claims for the year exceeds the deductible threshold.
For example, if you already have a health plan worth INR 10 lakh and choose a super top up plan at INR10 lakh with INR 5 lakh deductible. In this instance, the base plan must be used to pay the initial claim of up to INR 5 lakh. Every extra claim that exceeds INR 5 lakh will be covered by the super top-up plan.
Read more - A to Z about Top-up and Super Top-up Health Insurance Plans
Conclusion
Your parents must have given you the greatest life they were able to; now it's your job to step up and give them the best care you can. What's next? If any of your parents are older than 60, you may also be eligible for an extra tax exemption of up to INR 50,000 under section 80D for the premium you pay for their health insurance.
