Worried about the rising medical cost? Do you think an illness in your family can make a hole in your pocket?
Get a health insurance cover for yourself and your parents to protect your savings in case of a medical emergency. The sooner you get health insurance, the better it is for your finances. Purchase health insurance for parents when they are still considered young parents. Older age pushes up the premium and provides restricted coverage to diseases.
After the Covid-19 pandemic, the need for a health insurance plan has become more apparent. People have realised its importance and this is the reason why the demand for health insurance has surged. Even if we ignore the impact of the pandemic, still a health insurance policy is a must for the right financial planning.
Health insurance is a customized plan tailor-made to give medical coverage to parents. It comes up with comprehensive coverage from medical ailments that may arise due to old age and may bring big medical expenses.
Many plans even cover COVID-19 infection and other serious illnesses that can cost a fortune for the treatment. Recently, some specific COVID plans have been introduced for 65-years old people that you can purchase for your parents.
The right health insurance for parents depends on different factors like your health condition and that of the person who will be insurance. Here are some of the major factors to consider while choosing health insurance for parents;
· Coverage: Ideally, one needs to go higher to opt for the better. However, there is no direct connection between the premium that you pay and the coverage you get. But many companies cover more than the basic hospitalization and pre-and-post-hospitalization expenses. They also offer a consumable allowance, allowance for a companion, domiciliary hospitalization, etc. Make sure you have understood all the coverage you receive to get the best value for your money.
· Co-Payments: Health insurance plans designed for senior citizens include a co-payment clause. It means, the insured has to bear a portion of the claim amount, the amount is specified in the policy. While IRDAI has made it mandatory for the insurance companies to reimburse at least 50% of the pre-insurance medical investigation cost to the senior citizen.
· Flexibility: Flexibility is another major factor to consider while buying health insurance for parents. Some insurance companies have a provision where you can research the sum insured, up to 100% of the actual SI if the amount gets exhausted. At a different level, some companies let you buy a policy for the tenure of 1-3 years. Always go for the option when you can have some flexibility in your plan.
· Waiting Periods: Most insurance companies have a waiting period before they cover pre-existing illnesses and some do not cover them at all. Generally, the lower the waiting period the better it is considered.
· Pre-existing Illnesses: Your insurance provider covers your pre-existing illness or does not cover it, which is another key factor to consider. If you are going through any pre-existing illnesses, as defined in the policy, ideally, they should be covered, at least eventually.
· Network: When it comes to an emergency, everyone needs instant medical help regardless of their age group, it becomes even more important for senior citizens. So when you plan to get health insurance for your parents, always check how wide an insurer’s network hospital strength is. Going for a company that covers the highest number of hospitals in different cities is always a smart decision.
· Day-care Procedures: A lot of insurance policies do not cover Day-care procedures. To claim the insurance, 24-hour hospitalization is compulsory. And with advanced medical solutions available everywhere, there are a lot of procedures that do not need any hospitalization. Hence, it is wiser to purchase a policy that covers the highest amount of daycare procedures.
· Claim Process: Claim process plays a vital role in purchasing health insurance irrespective of what age you are. Make sure you understand how the claim works before you make your final decision. So that you do not waste your time or effort following up on a claim.
Besides, people over 65 years old should go with a high-level plan because they may need more healthcare needs than those below the age limit.
A health insurance policy is non-negotiable. It is one of the most important decisions of life.IIFL insurance helps and guide you to choose the right policy for you and your family. When you need to buy the same, be careful of choosing the right plan. You should be well-informed about what’s available and how it compares against one another before deciding. Also, consider the aforementioned points and compare different plans to find the best and then purchase accordingly.