Health Insurance for Ageing Parents - Planning Guide

Obtaining reliable health insurance for ageing parents has become a financial necessity in India. It ensures quality medical treatment for them without depleting their retirement corpus.

However, picking the right plan requires careful evaluation of several factors while prioritising their medical needs. Keep reading to learn more!

What are the Key Factors to Consider Before Buying Health Insurance for Ageing Parents?

While planning health insurance for your ageing parents, consider these factors to ensure reliable coverage during medical emergencies:

Analyse their Age and Medical Requirements

Assess their age and current health condition, including pre-existing diseases (if any). It will help you identify their potential health risks and the kind of coverage they will need in a health plan. Check whether they meet the eligibility criteria for the entry age when comparing health plans.

Adequate Coverage

When checking their medical history, ensure to determine the appropriate sum insured to cover their medical expenses.

Experts suggest that in tier-1 cities, the sum insured for the elderly parents should be at least ₹20 lakhs, and in tier-2 & tier-3 cities it should be ₹15 lakh and ₹10 lakh, respectively.

Waiting Periods

Consider checking if your parents have any pre-existing conditions, such as diabetes, high blood pressure, heart disease, or thyroid disease.

Here, insurers may impose a waiting period of up to 4 years before they will cover medical expenses for those conditions. So, ensure you pick a policy with a 1- or 2-year waiting period.

Co-Payment & Exclusions

Co-payment refers to the percentage of medical expenses the insured individual pays at the time of claim, with the remainder covered by the insurer. It’s best to choose a policy with a lower or no co-pay clause to reduce the burden on your ageing parents during emergencies.

Check all the exclusions and read the policy documents carefully before buying any policy to avoid any hassle during the claim process.

Sub-Limits

Insurers can place a cap on specific medical expenses, usually a fixed percentage of the sum insured, in the form of sub-limits. It is better to avoid policies with sub-limits on inpatient treatments, as they can increase your parents' out-of-pocket costs.

Claim Process

It is wiser to choose insurers that offer a hassle-free claims experience. Insurers who offer cashless hospitalisation and have a wide network of hospitals are the reliable option.

It is often recommended to check the claim settlement ratio before picking any insurer. Insurers with a higher claim settlement ratio of 90% or above are more likely to settle claims without hassle.

While planning health insurance for ageing parents, it’s crucial to do a balanced cost vs coverage analysis. Always ensure they have sufficient coverage and high-quality health protection. Thus, it’s safer to go for policies that offer a shorter waiting period for pre-existing diseases, a higher sum insured, free yearly health check-ups, no co-payment, and lifetime renewability.