Mr. Suresh Iyer, a 29-year old working professional, covered his parents under a health insurance plan. One year into the policy, his father suffered from a medical ailment, which required hospitalization. The medical expenses amounted to INR 2.25 lakh. Given that Mr. Suresh's father was covered, Mr. Suresh did not have to make any out-of-pocket medical expenses. His father, therefore, received quality treatment without worrying about arranging for finance.
Like Mr. Suresh, you too may cover your parents under a mediclaim policy. There are numerous providers, who offer health insurance for parents. Such a plan helps to combat rising medical inflation quite easily. Besides, it ensures that you remain financially prepared for medical emergencies that are more frequent at an advanced age. By investing in such a plan, your dependent parents need not spend their retirement savings. Due to such widespread benefits, numerous children are investing in health insurance for parents.
Following are five aspects to take into consideration while purchasing a health insurance policy for your parents.
- Entry age
A critical aspect to keep in mind while buying a mediclaim policy for parents is the age factor. Your parents may fall in the older age bracket or they may even be retired. If your parents exceed the age limit permitted by the policy, they will not be able to avail of the benefits of the plan. Many insurance providers offer health insurance to those in the age bracket of 60 to 80 years as well. As not all insurers have standard entry age guidelines, you may check the entry age before selecting a certain plan.
- Renewal age
As the name suggests, renewal age refers to the age limit up to which you may renew health insurance for parents. Many insurers allow renewals up to 80 years, post which renewal is not allowed. Again, the renewal age varies from insurer to insurer. Hence, you may select an insurance plan that suits your parent’s age.
- Sum Assured
One of the most important aspects to keep in mind while purchasing a mediclaim policy for parents is the sum assured. Since your parents are in the higher age bracket, the risk of contracting a medical disease or ailment is higher. Hence, you may opt for the highest coverage possible.
Ensure that the medical policy you opt for offers coverage against a broad range of illnesses. You may select a health insurance plan that covers hereditary diseases such as hypertension, diabetes, or heart disease, among others. You may review the terms and conditions of the policy very carefully, and look out for exclusions such as pre-existing medical conditions that are not covered.
- Premium amount
The amount charged as premium depends on a variety of factors, most importantly the age of the insured. Higher the age, higher is the risk liability of the insurer. Health insurance companies, therefore, charge a higher premium for older individuals as compared to those in the younger age bracket. You may, therefore, request quotes from multiple insurance providers and chose the one offering maximum benefits at the most competitive price.
Keeping the aforementioned aspects in mind will indeed go a long way in making a well-informed purchase decision. By doing so, you may offer your parents financial security without burning a hole in your pocket. Alternatively, you may consider investing in a family medical insurance plan. Such a plan could provide financial protection to your parents from medical contingencies.