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HEALTH INSURANCE

Get Medical Insurance for Parents & Know its Benefits

Rohit Sapra Rohit Sapra 15 November 2019

Buying health insurance for parents at an early age will offer you benefits such as lower premiums. Find out how having a health insurance policy for your parents will ensure that they get all the medical attention they need.

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As children, we always want the best things for our parents, be it food, living conditions or healthcare. This is all true as they begin to age and face health-related issues. Health insurance for parents acts as a financial security against unforeseen medical emergencies and is something that every individual should have.

Why do you need health insurance for parents?

  • Inadequate life cover: If your existing health insurance policy does not cover your parents, it is crucial to buy comprehensive health insurance specifically for your parents to cover them against expected and unexpected medical emergencies.
  • Beat inflation: Medical expenses will continue to rise due to inflation. Getting health insurance for parents will ensure that your parents are covered from expenses arising out of medical emergencies.
  • Lifestyle diseases: As modern life is becoming more stressful, lifestyle diseases have become more common. When lifestyle diseases such as heart attack, stroke, diabetes, etc. strike, a health insurance policy becomes your ultimate saviour.
  • Savings: Buying health insurance for parents at an early age will give you the benefit of lower premiums, and hence you will be able to spend less and avail more benefits.
  • Income tax benefit: If your parents are senior citizens, you are eligible to avail income tax benefit of Rs. 50,000 in a financial year under Section 80D of the Income Tax Act, 1961.

Here are some of the value-added benefits of health insurance for parents

  • Health insurance provides coverage against hospitalisation expenses, be it planned hospitalisation or an emergency arising out of natural causes or an accident.
  • It provides coverage against illness/injury in case of an accident.
  • Most of the health insurance plans offer a cashless settlement in network hospitals.
  • The policy can be renewed annually.
  • The policy covers pre and post hospitalisation expenses up to a specific duration.
  • You can purchase a new health insurance policy or renew an existing one through online mode, without any hassle.

Why is medical insurance so expensive?

While the healthcare sector in India remains a key sector for development, medical insurance remains underpenetrated and expensive in the eyes of Indian consumers.

Medical insurance is a crucial pillar, not just for your physical health, but also for your financial well-being. It enables access to quality health care while reducing the impact of an unfortunate health event on your family’s earning and payment capacity.

Insurance companies in India have been working tirelessly to expand health insurance coverage and distribution, leveraging new distribution models and technology to reduce the cost of covers for consumers. This is in addition to the initiatives taken by the government to enhance the awareness regarding the importance of medical insurance as well as the quality of services to the consumers.

One of the reasons of expensive medical insurance in the country is that India stands apart from most other countries on account of its diversity, whether its age, socio-economic distribution, financial literacy, education levels, wellness, and growth rates across different parts of the country. This mainly makes it more difficult for the insurance sector to cater to each customer's needs in a cost-effective manner. However, the acceptance of medical insurance remains low.

On its part, the medical insurance sector has been leveraging the new channels to expand outreach and lower the cost of selling.

How to save on health insurance premium?

When unforeseen medical emergency take place, it becomes quite tedious to cope with such a situation. But if you are covered with a proper health insurance policy, you are at a relief. Health insurance policies cover a wide range of health care costs such as hospitalisation costs, medical bills, pre and post hospitalisation expenses and more. Many people, however, avoid having a health plan because of its cost. Are you one of those who look for ideas to save on health insurance premium? Here are some proven tips for you.

Buy online health insurance policy at an early age

Choosing to buy medical insurance at a young age would cost you less. Health insurance companies usually consider young people as less likely to fall sick and get hospitalised. Hence, they charge lower premiums to younger consumers. If you compare health plans when you are young and healthy, you can grab a better deal in terms of premium and coverage.

Go for lower coverage to begin with

In case you are on a tight budget, you can start with a health plan with relatively lower coverage. You can use the health insurance premium calculator to arrive at the premium amount that you have to pay for specific coverage. Moreover, you can always enhance the sum insured of your medical insurance upon renewal by paying an additional premium when your financial status improves.

Opt for co-payment and deductibles

Many health insurance providers allow customers to go for deductibles and co-payment voluntarily. You can use this as an option to lower your medical insurance premium. You can also compare policies online to find out the health insurance plans with such options. However, it is important to choose the right amount of deductible because you have to pay that amount when you claim your health insurance policy.

Select long-term medical insurance

The cost of long-term medical insurance in India is less than the cost of basic medical insurance policies with the annual term. Hence, you can save on premium of your health plan by picking an insurance policy with 2-3 years term.

All these ways will help you to cut down your health insurance premium. You can also compare different health insurance plans to choose the best suited medical insurance policy with an affordable premium. If you pay attention to these tips while buying or renewing your health insurance policy, you can keep the premium within your budget and continue to stay protected.

Recommended Link:Does parents’ health insurance policy cover malaria, dengue and pneumonia?

Rohit Sapra
Written by Rohit Sapra
Rohit Sapra, a licentiate, and currently an SME, is a seasoned insurance professional with previous work experience from Kotak and Birla Sun Life Insurance.
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