It is essential to get your entire family covered under health insurance for medical expenses. But more than that, it is important to get your senior parents insured under a separate health insurance policy as they might be facing various co-morbidities. It might need a more comprehensive cover than the rest of the members.
It is not advisable to include your parents in the health insurance policy for family members. One can also take various other benefits by taking out separate health insurance for senior parents.
The Premium Is Linked to The Eldest Member
The premium of the family floater plan is subjected to the age of the oldest member in the family. The age of the most senior member is taken into account to calculate the premium for the policy. So if you include your parents in the family floater health insurance plan, you might have to pay a higher premium. It is better to get a separate health insurance policy for your parents.
Probability of Losing Out No Claim Bonus Increases
No Claim Bonus (NCB) is a reward given by the insurer if the health policy remains unclaimed. This means that if the family health insurance policy has not been used even once, then the insurance company offered a discount on the renewal of the policy, successive years.
Thus, if an older adult is attached to the family health insurance plan, the probability of claiming this reward decreases as the elderly require regular medical assistance. And once the policy is claimed, then getting the discount on the premium is not possible.
Tax Benefit on Both Policies
You, as a policyholder, can take the tax benefit under Section 80D for paying insurance premiums. There are certain limits to 80D, which you have to be sure of. By paying the premium for family health insurance for spouses, children, or even parents, you can enjoy tax benefits on the total premium paid.
Pre- Existing Disease Increases Premium
Whether it is family health insurance or individual health insurance, the premium is always higher if there is a pre-existing health condition attached. The probability of having a pre-existing disease is higher in an older person than in a young person.
Since parents are the eldest family members, including them in the family floater plan might prove a big decision. Therefore, if you are planning to add our parents to the family floater plan, it might increase the policy's premium.
Less Coverage for Other Members
The possibility of getting hospitalized or getting medical treatment repeatedly is higher in elderly people than in a young person. Hence, the coverage might be used more than you had expected.
Therefore, the coverage left for you and the other family members might be inadequate at the end of the year.
These are the various reasons why getting separate health insurance for your parents might work in your favor. You can save up the money on premiums. You can save up money by getting tax benefits. Then you can re-invest the money into saving schemes or mutual funds or in direct equity.
It is essential to be well informed about the health insurance and equally important to choose the best one out of the many options available. It should be well within your budget and should provide proper coverage to meet the requirements. You can check Bajaj Finserv’s website for better plans and choose from the variety of options available.