Why You Shouldn’t Buy Health Insurance Policy for Family Including Parents?

Team AckoNov 8, 2024

The aspect of getting health insurance is an important part of an individual’s financial planning. Getting health insurance offers protection against different medical expenses and health emergencies. Even though insuring oneself and family is considered sensible, there are cases where purchasing a health insurance policy for family including parents may not be a cost-effective decision.

If you are confused about family floater health insurance for parents, here we will discuss the factors that affect such plans, along with suitable alternatives.

Contents

• Why Shouldn’t You Include Your Parents in a Family Insurance Policy?
  • Costly Premiums
  • Less Coverage
  • Waiting Periods
  • Effect on NCB
  • Fear of Policy Termination
• What are the Alternatives to Not including parents in a Mediclaim Policy?
• Final Takeaway
• Frequently Asked Questions (FAQs)

Why Shouldn’t You Include Your Parents in a Family Insurance Policy?

Below are some of the reasons why you should not opt for a medi-claim policy for family including parents.

Costly Premiums

The primary factor is the premium. Insurance companies consider various points while deciding the premiums you must pay for a family health insurance plan. And the age of your parents is one of them. Since they need to cover the pre-existing illness of the insured members, the payable premium might be higher.

In other words, the older your parents are, the higher premiums you are required to pay, which is not the case if you go for a separate health insurance plan for them.

Less Coverage

Family health insurance provides financial aid for covered treatments for all the members of your family, where your parents are the eldest and more prone to illness. Hence, the coverage an insurance company provides shall mostly be spent on their treatment, leaving less for the other members of your family.

Waiting Periods

A family health insurance policy has waiting periods, that is, the period after which the enlisted ailments will get covered. Such plans can have up to 4 years of waiting period if it includes pre-existing diseases. Some insurance companies can also have 1 to 2 years of waiting for specific ailments.

Effect on NCB

Since older parents may require frequent medical attention, you might have to claim against your family health insurance plan. NCB (No Claim Bonus) takes effect if you have not claimed in the previous policy year. There is a certain percentage-wise increase in your sum insured, if there are no claims. So, you might lose out on your NCB if your older parents are a part of your family health insurance plan.

Fear of Policy Termination

Health insurance plans come with clauses, which specify the maximum age limits of the insured members. A family floater health insurance covering parents can get terminated if one of the insured members reaches the age limit.

What are the Alternatives to Not including parents in a Mediclaim Policy?

As children, you must ensure the best facilities for your parents. Hence, once you are aware of why you should not go for a health insurance policy for family including parents, you must go for a suitable alternative. Choose a plan that is most beneficial for your parents.

In this case, you can go for an individual plan or separate health insurance for your parents. It will ensure your parents get the maximum benefit with low premiums. Along with that, let's have a look at some of the factors to consider when opting for individual health insurance for parents:

• Coverage: You must look for the best insurance plan that provides the maximum coverage. It should cover most diagnostic tests apart from hospitalisation cover.

• Waiting Periods: Health insurance plans with minimum waiting periods are suitable in the case of health insurance for older people. It ensures they get insurance coverage faster for their medical treatment.

• Enlisted Hospitals: It is desirable to go for medi-claim policies with over 5000 enlisted hospitals in India. Also, ensure there are enlisted hospitals in or around your parents' residential area.

• Sum Insured: You must ensure the sum insured you get is appropriate to fulfil your parents' medical needs. Calculate the sum by considering your parents' medical history, age, etc.

• Additional Features: You can also go for an insurance plan that offers some helpful features such as coverage for critical illness, 0% co-payment option, complementary health check-ups, fewer sub-limits etc.

Final Takeaway

To conclude, a health insurance policy for family including parents can cost you more than what you anticipate. To avoid such circumstances, you can opt for better insurance plans that would earn your parents a longer policy tenure and other benefits. Therefore, consider the factors mentioned above and proceed only after carefully researching insurance policies.

However, we hope to make you understand the significance of a health insurance plan in life. It acts as a financial protection for your family during any medical emergencies. Besides getting tax benefits on health insurance, you can also have cashless treatment facilities and other benefits.

Frequently Asked Questions (FAQs)

Given below are some of the commonly asked questions regarding a health insurance policy for family including parents

What should be the maximum age of an insured member to be included in a health plan?

The maximum age for an insured member should be 65 years. Age criteria can vary among insurance companies. So, you can use an insurance premium calculator to confirm details like these.

What would happen if I exhausted the sum insured for my parents' treatment?

If you exhaust your sum insured before its stipulated time, you can opt for the restore sum insured benefit, through which you can get an additional amount after you exhaust the primary sum insured in one policy year.

Why would I need a health insurance plan for my parents if I have a life insurance plan?

Health insurance and life insurance are two different plans. Even though life insurance plans provide you with financial coverage during someone's death or disability, family health coverage plans cover your medical expenses. It ensures resolving the financial aspects of health-related issues instantly.

Do medi-claims for family with parents cover investigative or diagnostic tests?

Yes, the media-claim policy for family with parents covers investigative or diagnostic tests depending upon the terms and conditions of the plan. Some of the medical tests include:

• CT scans
• X-Ray
• Stool tests
• Blood tests
• MRIs
• Sonography

What would happen if the primary insurance holder dies before the exhaustion of the policy period?

If the primary insurance holder dies before the exhaustion of the policy period, the second surviving person can continue with the insurance policies, availing the benefits. However, the insurance company should be informed about the same.

What documentary proofs are required to claim the sum insured for parents?

Though these vary among the insurance companies, some of the documentary proofs required to claim the sum insured for parents are as follows:

• Policy document
• Medical/ hospital bills
• Payment receipts of medical bills
• Discharge reports from hospitals
• Duly filled health insurance claim form
• Consultation and diagnostic reports

What are the things to consider in a health insurance plan that includes parents?

Some of the things include:

• Ambulance cover
• Domiciliary treatment coverage
• Organ donor expense
• Pre and post-hospitalisation
• Day care expenses
• Lifetime renewability
• Income tax benefits
• Restoration benefits
• No claim bonus

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