Health Insurance is a need for everyone regardless of age. As we are evolving with the advancement of technology in the world, the rise in lifestyle diseases and other associated illnesses is overlooked. And until we become aware of reality, we hardly notice their influence on medical inflation.
We are all likely to have a lot of questions in our minds while we research various Health Insurance plans. One such question is “Is it better to add my parents to my Family Health Insurance policy or to purchase a separate policy for them?” Here are a few tips that emphasize why you should consider buying a separate Health Insurance policy for your parents.
Impact on Premium
Premium defines the amount paid to avail the Health Insurance coverage. The premium of the Family Floater Health Insurance plan is calculated based on the age of the eldest member of the family. Therefore, adding your family members to your existing policy will cost you a high premium. The age of the insured is one of the keystones in calculating the premium. The older you are the higher will be your premium as elderly people can be more vulnerable to health risks when compared to younger ones.
Sharing the Sum Insured
The Sum Insured of a Family Floater Health Insurance policy is shared among the family members. If you add your parents, then the overall Sum Insured will be shared by your parents too. Because of age-specific diseases and illnesses, elderly people have a high possibility of making multiple claims. The coverage of opted Sum Insured might be inadequate if more than one family member gets hospitalized at the same time. Opting for a higher Sum Insured might seem like a solution, but you might end up paying a high premium.
If the insured is subjected to any disease or illness before opting for a policy, then such conditions fall under the category of pre-existing diseases. For example, diabetes, high blood pressure etc. could be considered as PEDs. Comparatively, the premium for people with pre-existing diseases will be high. Because people with PED conditions are more likely to file frequent claims. If you opt for adding your parents and if they have pre-existing diseases, then the premium of your Health Insurance policy will be high. Therefore, it is advisable to purchase a separate Health Insurance policy for your parents.
A cumulative bonus or no-claim bonus is offered by Health Insurance policies if the insured person completes a policy year without rising a claim. The no-claim bonus enhances the opted Sum Insured of the insured by a fixed percentage, thus entitling the insured to the enhanced Sum Insured coverage without any additional cost. If parents are added to the policy, because of their age the probability of making a claim is high, eventually affecting the no-claim bonus of the policy.
We all are aware that the premium paid towards Health Insurance policies are eligible for the income tax deduction under Section 80D of the Income Tax Act, 1961. According to the clause, a taxpayer has the right to claim a deduction for the premium paid towards Health Insurance policy for self, spouse, children and parents. So do not worry about the cost you are subjected to pay towards purchasing a separate Health Insurance policy for your parents, as they can be exempt from income tax.
Most Health Insurance providers are crafting a special policy for people aged 50 years and above. A suitable policy for parents offers various benefits such as home care treatment, cataract treatment, domiciliary hospitalisation, etc. Star Health Premier Insurance Policy is one such uniquely designed policy. There is no upper age limit to buy this policy. People aged above 50 years or above can purchase it.
The wide medical coverage, affordable premium and low waiting period of this policy make it an ideal choice for your parents. Thus, you can be assured of medical coverage with an array of benefits and safeguard your hard-earned savings from being drained to settle the medical bills. So, buying a separate Health Insurance policy for your parents will act as a financial shield and also ensure their finances and well-being are taken care of, thus making your life worry-free.