Factors to consider while buying Health Insurance for parents

Are you planning to buy a Health Insurance policy for your parents? Health Insurance is essential for everyone because of medical inflation and rising healthcare costs. Health Insurance for senior citizens is unavoidable because the elderly are prone to health risks when compared to younger people.

However, adding your parents to your current Individual Health Insurance, Family Health Insurance or Group Medical Insurance is not a wise decision. Because it leads to the following consequences - high premium, exhaustion of the Sum Insured, out-of-pocket expenses, etc. Moreover, it may also impact on your cumulative bonus because of the possibility of making claims. Buying a separate Health Insurance policy for senior citizens provides wide coverage against various diseases and illnesses, ensures financial assistance at the needful time and secures health, wealth and well-being.

If you have decided to opt for a separate Health Insurance policy for your parents, be mindful of the following factors:

Sum Insured

Sum Insured denotes the maximum coverage the insured is entitled to under the opted medical insurance policy. Choose an adequate Sum Insured to minimize the out-of-pocket expenses. Elderly persons are more vulnerable to health risks and age-related diseases and illnesses, thus there is a high probability that the Sum Insured amount might get exhausted. Also, consider the pre-existing diseases (PED) or other health complications of your parents, if any.

Waiting Period

The waiting period denotes the timeline when the insured is supposed to wait for a certain time period to avail claim for the coverage, diseases or illnesses which are bound with the waiting period. Look for policies that offer low waiting periods. The waiting period for policies, which are specially crafted for senior citizens is low. If not, look for PED riders or waivers which help to reduce the waiting period in exchange for an additional premium.

Outpatient Expenses Coverage

The outpatient expenses of an individual are often overlooked. Regular Doctor appointments, pharmacy expenses, diagnostic costs, etc., might take a toll on your savings and finances. Health risk increases with age, and senior citizens may require regular hospital visits for doctor consultation. Having outpatient expenses covered will indemnify the incurred expenses subjected to the terms and conditions of the policy.

Network Hospitals

Networks Hospitals are a hospital that works in agreement with the insurer to provide cashless treatment and quality service. You do not have to worry about paying the hefty

medical bills if treated in a Network Hospital, because the insurer will directly settle the bills with the hospital. Opt for an insurance provider who offers a wide number of Network Hospitals, thereby you can opt for the one near your locality.

Comprehensive Coverage

Make sure the policy offers comprehensive coverage and entitles the insured to opt for add-ons if necessary. See if the policy provides extensive coverage including pre- and post-hospitalisation expenses, domiciliary hospitalisation, home care treatment, AYUSH treatment, annual health check-ups, cataract treatment, etc. Comprehensive coverage ensures your hard-earned savings are secured against medical bills.

Co-Payment

Most Health Insurance plans for senior citizens are crafted with co-payment features. Co-pay defines the cost of sharing the claim amount between the insurer and the insured for every eligible claim. The insured is subjected to pay a fixed percentage of the claim amount out-of-pocket, and the company will pay the remaining as per the terms and conditions of the policy. So, lower the co-pay so will be the out-of-pocket expenses.

Sub-Limits

Sub-limits define the pre-defined cap set for a specific disease, illness or coverage. The insurer is liable to pay the claim amount only up to the sub-limits as mentioned in the policy document, and the rest of the claim amount should be paid by the insured. Overlooking the sub-limits leads to out-of-pocket expenses. Sum Limits can be enhanced by opting for a higher Sum Insured.

Besides the fore mentioned factors, also pay attention to the premium. Pick a policy that offers comprehensive coverage at an affordable premium. Look for premium discounts such as online discounts, long-term discounts, etc. Moreover, the premium paid towards availing Health Insurance for your parents is exempted from income tax under Section 80D of the Income Tax Act, 1961. Now it is your time to secure the health and well-being of your parents by gifting the best Health Insurance policy that suits all their needs.