Health Insurance Plan for Parents: How to Pick Right Health Insurance Policy

Taking care of parents and ensuring their well-being is a huge responsibility. As our parents age, they can become vulnerable to various health disorders such as diabetes, hypertension, etc. Additionally, their health may deteriorate as part of the ageing process, leading to other complications like arthritis, cataracts, loss of hearing, etc.Considering the rising healthcare costs in India, having reliable health insurance for your parents is a must if you do not want to dig into your savings account .However, choosing the right plan can be difficult since there are several products available in the insurance market. To determine which policy is best suited for your parents read the suggestions mentioned below: Also Read: Why do you have a higher Health Insurance premium if you are over 60 years?

Before looking at the best Health Insurance plan for your parents, it is important to know about the pool of Health Insurance products from which you can select. Here are the different types of health plans:

Individual Health Insurance

Individual Health Insurance policies provide coverage to a single person – the policyholder. You can buy a plan for each family member and cover expenses related to their medical bills and hospitalisation charges.These policies may have higher premiums than other plans but are more useful if the covered family member has any major illnesses or needs constant medical care.

Family Floater Health Insurance

Family Floater plans offer financial coverage to your entire family under a single policy. You can add dependants, like your spouse, children, parents, and even siblings under such plans. Family Floater plans usually have lower premiums than Individual Health Insurance. However, the downside is the overall coverage for the family keeps reducing every time any member makes a claim. So, a family member requiring regular medical care may use the entire insured amount, leaving the others with no coverage.

Senior Citizen Health Insurance

Senior Citizen Health Insurance policies help meet the medical needs of senior citizens. Usually, such policies cover certain pre-existing diseases, hospitalisation expenses, critical illness, pre- and post-hospitalisation expenses, etc. They also provide substantial claim disbursement, making them an ideal option if your parents are above the age of 60 years. Also Read: Differences between Family Floater plans and Individual Health Insurance

Several insurance products cater to different health conditions. When deciding the right one for your parents, you can keep the following things in mind:

Be prudent with the policy coverage amount

Although a higher coverage is better, it also means a higher premium. It is important to assess your parent’s medical needs properly and strike the right balance between the coverage and the premium so that it is convenient for you to make timely payments. You can also consider buying riders or add-ons to enhance your coverage and get maximum value for your money.

Understand rules for coverage of pre-existing conditions and waiting periods

Pre-existing illnesses are medical conditions your parents may have been diagnosed with 48 months before you buy the Health Insurance policy. Depending on your parents' health conditions, insurers may impose a time limit before which you cannot make any claims. This period is known as the waiting period. Some plans may exclude pre-existing illnesses, while others may impose a waiting period for claiming costs related to such ailments. It is important to check the waiting period for common pre-existing conditions and ensure that it is not more than 2-4 years. Opting for plans with the least waiting period is generally advisable.

Check if there is a co-payment clause

Insurance providers may levy a co-payment clause if your parents have crossed a certain age. Under the clause, you must bear a specific portion of the incurred medical expenses. It could be a fixed amount, or a percentage of the sum insured. In other words, you agree to pay a part of the claim amount from your pocket, and the insurer pays the balance. You must be aware of any such clause before finalising a Health Insurance plan for your parents.

Know the renewability limit

A lifetime renewability clause offers much-needed Health Insurance coverage for life. This means that your parents can continue enjoying the features of the existing Health Insurance plan, and you need not keep researching for a new one. While the renewability limit may differ from one insurance company to the other, looking for an insurer that offers lifetime renewability is advisable.

Understand the claim process

When you file a claim to request compensation for medical expenses, the last thing you would want is to deal with a complex claim process. Before you purchase the policy, understand the process well to avoid any last-minute hassles. You can assess the Claim Settlement Ratio (CSR) of the Health Insurance company to get a better picture. The CSR of an insurance provider is the proportion of settled claims to the total number of claims it receives. A higher CSR indicates a good track record of approving claims. Plans with the highest CSR offer a smoother experience when it comes to the claim process.

Check for cashless facilities

During a medical emergency, you may face several hurdles which you need to take care of simultaneously. One such example is when you have to scramble around and arrange funds for medical treatments. This need can be eliminated if the healthcare facility your parents are admitted to is part of your insurer's network. You will be entitled to cashless claim benefits if that is the case. When looking for the best Health Insurance for parents, choose an insurer with the maximum number of network hospitals, especially in your locality.

Location of network hospitals

Insurers maintain a list of medical providers with whom they have established partnerships. These providers are known as network hospitals. Getting treated at a network hospital grants you the option of availing cashless facilities, a nifty feature under your policy. Looking at an insurer’s list of network hospitals is an important step that many undertake while sieving through insurance policies offered by different insurers. You can add to this step by verifying whether the location of a network hospital is within its vicinity. Choosing policies for your parents that contain network hospitals close to where they reside is always a good idea.

Value-added services

Services such as preventive health checkups, cover for diagnostic tests, teleconsultations, and other medical provisions set apart one Health Insurance plan from another by enhancing the scope of coverage. Choosing policies that offer greater benefits over others is advisable so that your parents can enjoy the best possible coverage.

Tax benefits

Health Insurance plans have certain tax benefits. You can avail of tax deductions under Section 80D on the premium paid. Depending on the age of the insured members, the benefits can extend up to ₹75,000 per annum. Also Read: Importance of Health Insurance for your family

• Individual Health Insurance, Family Floater plans, and Senior Citizen Health Insurance are among the most popular choices when buying Health Insurance for your parents.
• The most important factor under your policy is the coverage amount. Pick a coverage amount that provides comprehensive coverage for your parents' medical conditions while ensuring affordable premiums.
• Co-payment is a partial payment you might have to make under a claim. Look for plans with either no co-payment or a smaller co-payment portion.
• Health Insurance plans with a lifetime renewability clause offer much-needed life cover without the hassle of buying a new policy.
• Gauging the Claim Settlement Ratio (CSR) is a good way of analysing the insurer’s likelihood of approving claims.
• Opt for plans with a shorter waiting period so that your parents get coverage benefits as soon as you buy them.

Also Read: How you should plan Health Insurance for your parents