Is adding parents to an existing health cover a smart decision?

If you are covered under a group health insurance policy, you may want to consider adding your parents to it. However, these policies may not be beneficial as your parents’ sole or primary ones. Adding your parents to an existing policy or a group cover should be considered as more of a safety net. Health concerns associated with growing age might make the sum insured insufficient, especially during a major illness. The same goes for if you have purchased a family floater plan. 

Drawbacks of adding parents to an existing health cover are discussed in detail below: 

Increase in Premium 

Adding parents to an existing health cover can increase the policy premium, especially if they are over 60 years of age already. The premium increases if you add senior citizens with pre-existing diseases to your family floater plan. It would be better to get a parents health insurance policy or a senior citizen health care policy. The money spent on the premium is in such a case justified as they would get adequate coverage from these policies. 

No-Claim Bonus 

You maintain your No-Claim Bonus (NCB) by not raising any claims during the policy term. However, it would be hard to avoid making claims with your parents added to the policy. The claims will be inevitable due to the increasing health risks of your parents. As a result, the NCB that reduces the premium or extends the insured sum would no longer apply. Therefore, instead of adding your parents to a family health insurance plan, get a separate policy for them. 

Longevity of Group Insurance Plans 

Most group health cover plans will be rendered useless once you retire. Therefore, the initially applicable coverage to your parents will no longer be valid. 

Due to these concerns, adding parents into an existing group health cover might not help the cause in the longer run. However, you need not worry as parents’ health cover plans are available these days. These health insurance plans allow you to provide coverage for both your parents without any hassles. Insurers also offer the option of including a single parent in this policy. A parents health insurance policy comes with these benefits:

• Benefits like domiciliary coverage would help your parents get treatment from home without issues. It would be practical to get a parents’ health cover policy that includes this facility for your ageing parents who cannot visit hospitals regularly. 

• Cashless facility is offered at network hospitals listed in the policy documents. It allows you to carry out the treatment procedures without paying anything upfront from your end. As a result, it helps you during medical emergencies when you may not be financially prepared for any major medical treatment! 

• Some parents’ health cover plans also include coverage for stroke, cancer, kidney failure, and other life-threatening diseases. The risk of such diseases tends to increase with age. Medical coverage for these diseases would minimise your expenses. Also, it will help your parents get quality healthcare services which might be essential for their survival from such illnesses. 

• The amount paid against the premium of a parents health insurance plan is tax-deductible according to section 80D of the Income Tax Act. 

• Sometimes, you might need emergency services like an ambulance to take your parents to the hospital. The good thing with a parents health cover plan is that it provides coverage for ambulance costs too. 

• All hospitalisation costs, including medical bills, ICU charges, room rent, and much more can be reimbursed if you opt for separate health insurance for parents. You can even claim for the expenses incurred before and after hospitalisation. Usually, pre and post-hospitalisation expenses between 30 to 60 days are considered. However, this period might vary from one insurer to another. 

• A higher sum insured can be opted for by getting a dedicated medical insurance plan for your parents. The entire amount can be used for providing quality healthcare services to them. 

• Such medical insurance plans also cover the expenses associated with daycare treatments. Apart from that, coverage for alternate treatment procedures i.e. AYUSH (Ayurveda, Yoga, Unani, Siddha, and Homeopathy) treatments can also be availed. 

By getting a health cover plan for your parents, you will support their health and finances. If you have opted for a family health cover with a high sum insured, you can include one of the parents in this policy. A parents health cover plan for single parents is also available. By doing so, you would ensure that both your parents get sufficient coverage during health crises. 

You can browse through some of the best medical insurance plans for parents on Bajaj Finserv website. Leading insurers’ health care plans are available here, along with special plans like senior citizens’ or parents’ health care plans. You can also search for extensive family health care plans and add-on covers on this portal.