Think Twice Before Adding Your Parents to Existing Health Cover! Here’s Why

A single floater plan that covers four adults – you, your spouse, and either set of elderly parents – might seem lucrative at the get-go. Many an insurer is going to try and rope you in to take the add-on benefits of including your parents in the family floater health insurance policy you opt for. Irrespective of how they try to sell it to you – don’t fall for it. Ever.

Why Should You Not Add Your Senior Citizen Parents under Existing Health Cover?

Do you know why it is advisable to purchase a separate policy for parents instead of adding them in yours? Read the below cons before you decide to add parents to your family health insurance plan.

Effect on Premium: Will Your Premium Remain the Same?

The premium for the health insurance plans for family are subject to the age of the eldest insured family member. Thus, if you add your senior parents to the family plan, it will significantly increase the total premium.

Moreover, a young 25-year-old person is not as prone to diseases or illness as a 50-year-old you would be. Thus, buying health insurance when you are young is the right thing to do. The premium you need to pay is less and also you get to enjoy the coverage for a longer duration.

Pre-Existing Illness: What About Pre-existing Diseases in the Elders?

A comparatively higher premium is issued to people with pre-existing diseases. Usually, senior members of the family have pre-existing conditions and so if you include your own parents in the family floater plan, it adds to the premium. This, in turn, affects the coverage availed by your entire family.

If you include parents in family health insurance plans, the premium skyrockets once either of your parents gets diagnosed with pre-existing disease. What makes more sense is to purchase separate policies for those with pre-existing disease.

No Claim Bonus: Does Your No Claim Bonus Remain the Same?

No Claim Bonus in health insurance is provided when you do not make any claim during the policy year. It can be provided as an in-built benefit or as an add-on.

But with more than one member in a plan, you can't control where and when one needs to make a claim. In such a case, you lose on the No Claim Bonus anytime a family member makes a claim. This is even more true with parents who might need hospitalization due to increasing age or a pre-existing illness. If instead, you opt for separate health insurance plans for parents – it is only their plan that gets affected, and your No Claim Bonus stays intact.

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Coverage Amount: Is Your Coverage Enough for You?

The coverage you get for a family of 4 might not be sufficient when you add parents into the equation. When you add parents who suffer from pre-existing diseases and/or require frequent hospitalization to your family health insurance plan, the remaining coverage might turn out to be insufficient for others when an emergency arises.

You must, therefore, remember to increase the sum insured of your health insurance plan if you decide to add parents to your policy.

Employers Group Health Insurance Plan: Will that Last Forever?

Your employer might be providing comprehensive coverage for you and your family. You may even think of adding your parents' to the plan. While it may look like a lucrative option, the longevity of a corporate insurance lies upon your employer's discretion or when you switch jobs. It can be pulled out at any time and you might end up helpless in dire situations.

Your employer group health insurance policy holds good as long as you are retained by the company and is often insufficient as compared to individual plans.

You May Like To Read: Mediclaim Policy For Senior Citizens

What Should You Do Instead?

The best way to ensure a comprehensive plan for the parents is to choose from multiple online health insurance plans meant for the senior citizens. These plans are designed to specifically cover all their needs even over the age of 60, with guaranteed renewal and a longer tenure.

There are various benefits of opting for an individual senior citizen health insurance plan for your parents instead of adding them to your existing ones:

• The new IRDAI guidelines mandate that all policies must have lifelong renewability.
• You can get tax benefits on the premium for the medical insurance
• Your parents can avail cashless treatment at network hospitals, ensuring they get access to timely treatment without much out-of-pocket expenses.
• Most plans provide value-added features, including preventive health check-ups, daily hospital cash, unlimited teleconsultations and domiciliary hospitalization, which can be beneficial for parents.

To Conclude

Knowing the drawbacks of choosing a family health insurance plan for your parents will make you understand why it is a wise choice to buy a different plan for them. A separate plan for your parents can better cover their specific healthcare needs, without disturbing the entire family's sum insured and coverage options. Remember to compare multiple health insurance plans online before deciding which one suits your parents the best.