In a world full of uncertainties, one thing remains clear: the health and well-being of our loved ones, especially our parents, are crucial. With healthcare costs on the rise, it's essential to ensure they have sufficient coverage. With the rising cost of healthcare, ensuring adequate coverage for our aging parents becomes paramount. Moreover, leveraging tax-saving benefits through health insurance adds another layer of financial protection.
Understanding the need for health insurance for parents
As individuals age, the likelihood of encountering health issues increases. From routine check-ups to unforeseen medical emergencies, the expenses can quickly escalate. Health insurance for parents provides financial security by covering medical expenses, including hospitalisation, treatments, medications, coverage for home treatment, mobile medical facilities, and much more.
Key Factors to consider when buying health insurance for parents
When purchasing health insurance for your parents, several factors need consideration:
• Age and health condition: Insurance premiums often vary based on age and existing health conditions. It’s advisable to opt for a policy with comprehensive coverage that includes pre-existing illnesses.
• Coverage limit: Evaluate the coverage limit provided by the insurance policy to ensure it adequately meets your parents' healthcare needs. Higher coverage limits offer better financial protection against medical expenses.
• Network hospitals: Check the list of network hospitals associated with the insurance provider. Opting for a policy with a wide network ensures accessibility to quality healthcare facilities.
• Co-payment and deductibles: Understand the co-payment and deductible clauses in the policy. Co-payment requires policyholders to bear a percentage of medical expenses, while deductibles are the initial amount to be paid before the insurance coverage is implemented.
• Premium costs: Compare premium costs across different insurance providers to find a policy offering the best value for money without compromising on coverage.
Claiming tax-saving benefits through health insurance
Health insurance premiums paid for parents are eligible for tax deductions under Section 80D of the Income Tax Act, 1961. The tax benefits are as follows:
• For self and family: Individuals can claim deductions up to Rs. 25,000 for health insurance premiums paid for themselves, their spouse, and dependent children. An additional deduction up to Rs. 25,000 is available for premiums paid towards parents' health insurance if they are less than 60 years of age.
• For senior citizens: If either of the parents is a senior citizen (aged 60 years or above), the maximum deduction upto Rs. 50,000 for payment of premium towards medical insurance policy.
• Preventive health check-up: An additional deduction up to Rs. 5,000 is available for preventive health check-up expenses for self, family, and parents within the overall limit.
Adding parents to group health insurance plans
Many employers offer group health insurance plans as part of their employee benefits package. Employees can typically add their parents to these group plans, extending coverage at nominal costs. Here’s how it works:
• Eligibility criteria: Employers may have specific eligibility criteria for adding parents to group health insurance plans. Typically, parents can be added if they are financially dependent on the employee and meet the age criteria specified by the insurer.
• Premium contribution: While some employers bear the entire premium cost for employees and their parents, others may require employees to contribute a portion of the premium amount.
• Coverage benefits: Group health insurance plans often provide comprehensive coverage, including hospitalisation, treatments, pre-existing conditions, and even maternity benefits for spouses.
• Tax benefits: Premiums paid towards group health insurance for parents are eligible for tax deductions under Section 80D, subject to the overall limit specified by the Income Tax Act,1961.
Investing in health insurance for your parents not only ensures their well-being but also offers tax-saving benefits. Whether you opt for individual policies or group health insurance plans provided by your employer, prioritising your parents' healthcare needs is a prudent financial decision. By understanding the nuances of health insurance policies and tax regulations, you can navigate through the process seamlessly, providing your parents with the care and protection they deserve while optimising tax savings for yourself.
Disclaimer:
T&C Apply. Bajaj Finance Limited (‘BFL’) is a registered corporate agent of third party insurance products of Bajaj Allianz Life Insurance Company Limited, HDFC Life Insurance Company Limited, Future Generali Life Insurance Company Limited, Bajaj Allianz General Insurance Company Limited, SBI General Insurance Company Limited, ACKO General Insurance Limited, ICICI Lombard General Insurance Company Limited, HDFC ERGO General Insurance Company Limited, Tata AIG General Insurance Company Limited, The New India Assurance Company Limited, Cholamandalum MS General Insurance Company Limited, Niva Bupa Health Insurance Company Limited , Aditya Birla Health Insurance Company Limited, Manipal Cigna Health Insurance Company Limited and Care Health Insurance Company Limited under the IRDAI composite CA registration number CA0101. Please note that, BFL does not underwrite the risk or act as an insurer. Your purchase of an insurance product is purely on a voluntary basis after your exercise of an independent due diligence on the suitability, viability of any insurance product. Any decision to purchase insurance product is solely at your own risk and responsibility and BFL shall not be liable for any loss or damage that any person may suffer, whether directly or indirectly. Please refer insurer's website for Policy Wordings. For more details on risk factors, terms and conditions and exclusions please read the product sales brochure carefully before concluding a sale. Tax benefits applicable if any, will be as per the prevailing tax laws. Tax laws are subject to change. BFL does NOT provide Tax/Investment advisory services. Please consult your advisors before proceeding to purchase an insurance product. URN No. BFL/Advt./23-24/231