Why is Buying a Senior Citizen Health Plan for Your Parents Important?
Key Takeaways
- Medical inflation is rising at 18% to 20% every year in India
- Treating age-related ailments without a policy can be expensive
- Choose a senior citizen plan with cover for pre-existing diseases
Growing old is an inevitable phase of life. As you reach adulthood, you may have parents who are about to reach or have already reached their golden years. It is now your responsibility to reward your senior parents for everything they have done for you. A senior citizen health plan for your parents is the best gift you can buy them to cover their health.
Aging leads to a gradual decrease in physical and mental abilities. It also increases the risk for age-related diseases [1]. So, it becomes important for you to buy an adequate senior citizen health plan for your parents. This helps you and them address medical expenses. With medical inflation rising at a rate of 18% to 20% every year, the right health insurance can save you from increasing treatment costs [2].
Read on to know why buying senior citizen health insurance, health insurance for your aging parents is necessary in present times.
Additional Read: Tips to Choose the Right Senior Citizen Health InsuranceWhy you should buy senior citizen health Plan for your parents
Wide health coverage
Healthcare expenses increase as we age. The right senior citizen health insurance offers pre- and post-hospitalization cover along with in-patient hospitalization. You can also get cover for critical illnesses, day-care procedures, AYUSH treatment, and domiciliary treatment. This way, your savings are safe from increasing healthcare expenses.
Pre-existing disease cover
Expenses of treating pre-existing diseases such as diabetes and hypertension over time can be huge. However, with a senior citizen policy, you can cover them affordably. Policies that cover pre-existing diseases usually have a waiting period of at least 2 years. So, make sure you buy a health plan for your parents with the least waiting period or early on in their life.
Cashless hospitalization
The probability of getting hospitalized is also high for seniors. During an emergency, arranging for a huge sum of cash for treatment can be a challenge. Luckily, health insurance providers offer cashless claim settlements. When you treat your parents at a network hospital, you can avail this facility. Here the insurer settles the bill directly with the hospital. In such cases, you or your parents do not have to pay anything from your pocket as per the terms of your plan.Financial security
Medical inflation is rising rapidly each year. This means the treatment you can afford out of pocket today may become unaffordable in a few years. Many people around the world do not receive proper healthcare due to lack of funds [3]. Having a senior citizen health policy for your parents can help them get timely access to care. A policy also provides a sense of financial stability and security for unforeseen events.
Tax benefits
The premium you pay for the health insurance of your parents gives you tax benefits under section 80D of the Income Tax Act. If your parents are below 60 years, the total tax exemption limit on the premiums you pay for yourself and your parents is Rs. 50,000. The limit goes up to Rs. 75,000 if your parents are above 60 years of age [4]. This way the policy you purchase to safeguard the health of your parents also acts as a tax-saving instrument.
Additional Read: Section 80D of Income Tax ActHow do you choose the right health insurance plan for your parents?
Buying a health policy for your parents is easy but finding the one that offers comprehensive benefits can be a challenge. Here are some points you need to consider to buy the best health policy for your parents.
High sum insured
Medical costs keep rising and you need a high sum insured to tackle your parents’ expenses. Seniors also generally require more medical care. Both these reasons are why you should choose a high sum insured.
Premium
Premium for senior citizens are usually higher compared to those for younger people. A high sum insured and more benefits usually results in high premiums. But you can compare and pick the right plan that comes at a reasonable premium.
Entry age
While selecting a health policy for senior parents, opt for a plan which has an entry at an advanced age and no limit to the maximum age. Also, buy a plan with lifelong renewability. Usually, senior citizen insurance plans provide coverage from 55 to 80 years. But some plans have an entry age of above 60 years.
Waiting period
If your parents have a pre-existing disease, consider buying health insurance early as such illnesses have a waiting period of 2 to 4 years. Choose a health plan that has the least waiting period and provides maximum coverage.
Network hospitals
Treating your parents at a network hospital gives you the benefit of making cashless claims. This is especially beneficial during emergencies.
Pre-existing diseases and critical illnesses cover
Choose insurance for your parents that covers pre-existing diseases. Check the illnesses covered under the plan. You can also opt for a critical illness top-up plan as these diseases require a huge amount of money for treatment.
Terms and conditions
Do not forget to read the fine print on the policy documents. Read all the terms and conditions carefully to make sure you have bought the right insurance policy for your parents.
Whether it is for you, your spouse, children, or your parents, buying health insurance helps save you money during unexpected events. Check out Aarogya Care Health Plans offered by Bajaj Finserv Health for you and your family. Get the Complete Health Solution plans that provide up to Rs.10 lakh medical cover at affordable premiums. Protect the health of your loved ones by utilizing preventive health check-ups, reimbursements on doctor consultations, and lab test benefits. Sign up today and ensure your parents have a cover for all their health needs!
- https://www.who.int/news-room/fact-sheets/detail/ageing-and-health
- https://www.hdfcergo.com/blogs/health-insurance/beat-rising-medical-inflation-with-1-crore-health-insurance-plan-for-your-family
- https://www.who.int/news/item/13-12-2017-world-bank-and-who-half-the-world-lacks-access-to-essential-health-services-100-million-still-pushed-into-extreme-poverty-because-of-health-expenses
- https://cleartax.in/s/medical-insurance
Please note that this article is solely meant for informational purposes and Bajaj Finserv Health Limited (“BFHL”) does not shoulder any responsibility of the views/advice/information expressed/given by the writer/reviewer/originator. This article should not be considered as a substitute for any medical advice, diagnosis or treatment. Always consult with your trusted physician/qualified healthcare professional to evaluate your medical condition. The above article has been reviewed by a qualified doctor and BFHL is not responsible for any damages for any information or services provided by any third party.
